KUALA LUMPUR, Aug 24 — Malaysia’s newly unveiled National Housing Policy or Dasar Perumahan Negara (DRN) 2026-2035 aims to change how homes are planned, built, financed and managed.

The policy proposes using more detailed local data to determine where housing is needed, expanding rental and financing options, making better use of existing housing stock and strengthening the way housing projects are approved and delivered.

Here is what the policy proposes and how it helps Malaysians with housing related matters.

Supply based on on local demand

One of the main objectives is to make housing planning more responsive to local needs.

The DRN looks to ensure housing projections at the sub-district and district level, take into account existing housing supply, vacant units, housing types, household income and price categories.

Housing and transport planning would also be better coordinated, including through a proposed study on Transit-Oriented Development (TOD).

The aim is for homes to be built where people need them and are connected to jobs, transport and essential services.

Unsold homes would be taken into account

The DRN will look at strengthening housing development approvals by considering existing housing stock and completed but unsold units according to locality.

The policy will also make available a feasibility study on renting out completed but unsold homes instead of relying solely on sales.

This would make better use of existing housing stock while allowing authorities to consider actual local supply before approving more projects.

Affordability measured by location

The DRN proposes assessing the affordability of both buying and renting according to locality, alongside new guidelines for affordable housing.

It also proposes a strategic study on affordable housing needs and provision.

The approach recognises that affordability differs between locations depending on household incomes, property prices and rents.

More ways to access a home

The DRN proposes expanding access to housing beyond conventional home ownership.

These include:

  • Rent-to-own guidelines;
  • Affordable rental schemes by private developers;
  • Incentives for developers to provide affordable rental housing;
  • Shared ownership schemes;
  • Financing mechanisms for community- and cooperative-led housing; and
  • Long-term fixed-rate mortgage products.

It also proposes improving access to schemes such as Skim Jaminan Kredit Perumahan (SJKP), stepped financing and government assistance programmes:

  • A more formal rental market
  • For tenants, the policy proposes a framework for residential tenancies, including:
  • A Residential Tenancy Act;
  • A residential tenancy registration system;
  • E-tenancy agreements; and
  • Rental initiatives linked to the registration system.
  • The aim is to create a more structured rental market rather than leaving tenancy arrangements entirely to individual agreements between landlords and tenants.

More targeted housing for different groups

The DRN proposes housing measures based on demographic needs, including financing schemes for senior citizens, grants to modify homes for senior citizens and persons with disabilities, and different housing types according to location and demographics.

It also proposes transit housing for people facing transitional or emergency housing situations, a study on centralised worker accommodation, housing on wakaf land for lease and rental, and community- and cooperative-led housing.

Eligible people experiencing homelessness could also receive assistance to obtain more stable housing.

Preventing sick or abandoned projects

A major part of the government’s housing reform agenda is to prevent new housing projects from becoming sick, delayed or abandoned.

According to Housing and Local Government (KPKT) Minister Nga Kor Ming, KPKT’s special task force has resolved 1,647 sick and abandoned private housing projects worth RM153 billion, benefiting nearly 200,000 homebuyers. 

Nga said the government is targeting zero abandoned housing projects by 2030, with the approach shifting towards prevention rather than waiting for projects to fail. 

One of the measures is an Option to Purchase (OTP) mechanism, which Nga said will be introduced later this year.

A win-win 

Under the proposed mechanism, developers and buyers would have a specified period to withdraw before proceeding with the sale and purchase. 

Developers could exit if sales are weak and a project is deemed likely to fail, while buyers would receive a full refund of their deposits in such circumstances. 

Buyers would also be able to withdraw during the stipulated period, subject to the applicable administrative charges or interest. 

The government is also strengthening digital systems including HIMS (Housing Integrated Management System), TEDUH and electroni sale-and-purchase agreements, alongside periodic audits of Housing Development Accounts. 

What is TEDUH and how can it help homebuyers?

TEDUH or “Transforming & Empowering Data Usage in Housing” is KPKT’s digital housing information portal. 

The portal provides information on housing projects and allows prospective buyers to search projects by location and other criteria, while checking available information on project status and developers.

Its project-status system is linked to the HIMS, with data updated through the housing department’s system. 

For buyers, this means TEDUH can provide another source of information to check a housing project before committing their money, rather than relying solely on information from a developer or sales agent.

Housing quality and maintenance

The DRN proposes stronger housing standards, including compliance with Universal Design Guidelines for new developments and greater use of modern construction technology.

It also proposes guidelines for housing maintenance and facility management.

For strata properties, the policy proposes that estimated maintenance and replacement costs over a property’s life cycle be included in sale-and-purchase agreements.

Better urban renewal plans

For ageing housing and urban renewal, the DRN proposes improved urban renewal guidelines, dilapidation reports for buildings identified for redevelopment and cost-benefit analyses (CBA) for housing redevelopment projects.

It also calls for stronger participation and protection of existing communities in redevelopment areas.

The aim is to consider not only whether a building needs to be redeveloped, but also its physical condition, the costs and benefits and the interests of existing residents.

Housing approvals and delivery could change

The DRN proposes taking local housing stock and completed unsold units into account when assessing new housing developments.

It also proposes amendments to the Uniform Building By-Laws (UBBL) and a new law covering the control and licensing of property developers.

Another significant proposal is to shift the housing delivery system from Jual-Kemudian-Bina (JKB), or sell-then-build, to Bina-Kemudian-Jual (BKJ), or build-then-sell.

A data-driven housing system

The policy proposes developing a Big Data Analytics and Visualisation system for the Housing Cluster (BDA Perumahan) and integrating housing data with systems used for development approvals and housing management.

It also proposes an index of construction costs according to house type.

These measures are intended to give policymakers better information on housing supply, demand, prices and construction costs.

How the DRN will assist Malaysians

For Malaysians looking to buy or rent, the proposed changes could affect several stages of the housing journey.

  • Before buying: More localised housing data and platforms such as TEDUH could make it easier to compare projects, prices and development status.
  • When choosing how to own a home: Rent-to-own, shared ownership and alternative financing could provide options for households unable to afford a conventional purchase.
  • When renting: A formal tenancy framework could provide clearer rules and documentation for landlords and tenants.
  • After buying: Stronger housing standards, maintenance planning and measures to prevent projects from becoming sick or abandoned are intended to reduce risks faced by homeowners.
  • For existing communities: Urban-renewal measures could give greater weight to the condition of ageing buildings as well as the interests of residents affected by redevelopment.