18MPS: Higher incomes still can’t fix housing crunch—economist

KUALA LUMPUR (Jan 29): Rising prices and limited income continue to put Malaysian homebuyers under pressure, particularly in urban areas.

Socio-Economic Research Centre (SERC) executive director Lee Heng Guie said property affordability pressure is expected to persist, especially in cities, amid an ageing population, and rising household debt.

“This will impact demand not just for housing, but also for services,” he said at the 18th Malaysian Property Summit (18MPS) organised by the Association of Valuers, Property Managers, Estate Agents and Property Consultants in the Private Sector Malaysia (PEPS) on Thursday here.

Lee explained that based on the household affordability index, median income levels are measured against prevailing house prices.

“Some areas are reaching a very serious unaffordable range, with house prices exceeding four to five times the median household income, while anything below three times is generally considered manageable.

“Overall, affordability remains consistently above four, with some areas reaching as high as 5.5,” he said.

He added that affordability pressure will continue even though median household income has risen to about RM7,017, as disposable income after daily expenses and financial commitments remains the key constraint.

“Commitments should not exceed 30% of income when considering a property purchase,” he said.

Improve pedestrianisation to mitigate traffic surrounding future RTS

Meanwhile, former Malaysian Investment Development Authority (Mida) board member and Taylor’s University adjunct professor Ong Kian Ming cautioned that Johor requires closer oversight because of the pace of property development in the state.

“It needs to be somewhat controlled, particularly in Johor, because if there’s one place that’s getting a bit frothy, it’s Johor, driven by interest surrounding the Rapid Transit System (RTS) Link connecting Malaysia and Singapore, as well as the concentration of new developments in Johor Bahru city centre,” he said during the “Malaysia Property Market Trends & Macroeconomic Outlook: Insights for 2026 and Beyond” session.

Ong explained that when the RTS begins operations by end-2026 or early 2027, traffic dispersal could become a major challenge.

“We need both short-term and long-term plans so that we don’t scare off investors or Singaporeans,” he said.

He suggested pedestrianisation as one solution to improve connectivity and commercial vibrancy.

“Consider pedestrianising at least 500m. Encouraging people to walk further allows more space for commercial activities, making the area more attractive and better connected to surrounding developments,” he said.

Ong also highlighted, among the various real estate asset classes, the industrial and logistics sector is the one that is most aligned with Malaysia’s next phase of foreign direct investment (FDI) growth.

“With Malaysia’s trade growth—both exports and imports—driven by incoming FDI and shifting trade flows arising from the US–China tensions, this sector is far more sustainable,” he said.

Ong added that innovations in industrial park management, including drone deliveries, and autonomous vehicles, could potentially create flagship logistics ecosystems.

“If implemented successfully, these could form flagship industrial parks and logistics ecosystems that serve as models for others, elevating Malaysia’s status at least at the regional level, if not global,” he said.

Napic data to be fully accessible to public from Feb 1

National Property Information Centre (Napic) valuation and property services department director Norhisham Shafie announced during a panel discussion that Napic data will be fully accessible to the public from Feb 1, in line with efforts to improve transparency.

“Starting Feb 1, 2026, (Napic) e-data will be available for anybody to purchase—whether you’re in prop tech, an academician, or you just want to know the price of your property. This includes rental data,” he said.

Previously, Napic’s e-data service, with property transaction details, was limited to only members registered with the Board of Valuers, Appraisers, Estate Agents and Property Managers (Bovaep).

“With wider access to Napic data, it will be easier for academics, researchers, students, and the general public to conduct analysis,” he said.

On the sideline, Norhisham told EdgeProp it is increasingly rare to find serviced apartment units in Kuala Lumpur that offer both good location and attractive pricing.

“Most unsold units have been completed for more than three years. The majority of these are priced between RM500,000 and RM1 million, which is currently above what many buyers are willing or able to pay.

“Serviced apartment stock that is more than five years old is generally not moving, but units completed within the last three years are performing well,” he shared.

Carrying the theme “Reshaping Real Estate: Alternative Assets, Adaptive Reuse & the Future of Investment”, the 18MPS summit brought together 300 industry players nationwide to unpack the outlook for Malaysia’s property market in 2026, with discussions spanning five key sessions including a panel discussion on how evolving investment trends, alternative assets, and adaptive reuse are reshaping the sector for investors, developers, and policymakers.

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