Rehda Institute backs data-driven housing planning under NHP

PETALING JAYA (Aug 13): Rehda Institute has backed the National Housing Policy 2026–2035’s (NHP) push for more data-driven housing planning, saying supply should be guided by demographics, household needs and actual market demand.

In a statement on Thursday, the institute said the policy’s direction was consistent with findings from its housing research, particularly the use of more detailed data to determine what types of homes are needed, where demand is emerging and which groups remain underserved.

The NHP calls for housing projections at district and sub-district levels to take into account existing housing stock, vacancy levels, housing types and prices, as well as where households live and work and their access to schools, healthcare and other amenities.

Rehda Institute said a more integrated data and analytics framework could help address persistent supply-demand mismatches, unsold completed units and abandoned developments.

Greater use of information on household formation, income, demographics, housing stock, vacancy rates and mobility patterns could help avoid excessive supply in weaker markets while directing housing to areas with genuine demand, it added.

Better data could also enable potential risks to be identified earlier, shifting the focus from responding to abandoned projects after they occur towards preventing them.

The institute said housing policy should not focus solely on increasing homeownership, noting that Malaysia’s homeownership rate stood at 78.0% in 2024 while households have different financial circumstances and lifestyle needs.

It said Malaysia should aim for a balanced housing system offering different tenure options, including homeownership, rental, rent-to-own and transit housing, according to household needs and financial capacity.

Rehda Institute also welcomed the government’s indication that affordable housing could move away from a uniform RM300,000 price ceiling towards a more income-based model.

It recommended that affordability benchmarks be reviewed periodically against local household incomes and actual demand, supported by income-based targeting and more location-specific allocation.

At the same time, the institute said housing prices should reflect actual delivery costs. In its Housing for All study, 82% of developers surveyed said regulated prices for price-controlled housing were below actual development costs, citing rising land, construction, labour, compliance and infrastructure costs.

Housing for an ageing population

Rehda Institute said demographic changes reinforced the need for housing policies that respond to households at different stages of life.

Citing Department of Statistics Malaysia data, it said Malaysians aged 65 and above accounted for 8.0% of the population in 2025, up from 7.6% in 2024. Malaysia is projected to become an “aged nation” by 2048, when those aged 65 and above are expected to make up 14% of the population, it said.

The institute said it welcomed the NHP’s proposed measures addressing the needs of an ageing population, including housing financing schemes for senior citizens, retrofitting grants to facilitate ageing in place and incentives for private developers to establish liveable senior care centres.

Improving access to housing finance

Rehda Institute said its research had identified loan eligibility as one of the main barriers faced by aspiring homeowners.

It therefore welcomed financing measures proposed under the NHP, including the Housing Credit Guarantee Scheme (SJKP), stepped financing, shared ownership and long-term fixed-rate mortgages.

The institute also highlighted the NHP’s life cycle approach to affordability, which recognises that household income, expenses and financial commitments can change over time due to income shocks, family formation, retirement and other life events.

It said affordability should therefore be assessed beyond the initial purchase price or rent to include the longer-term costs of financing, occupying and maintaining a home.

Rehda Institute said it would continue supporting the Ministry of Housing and Local Government (KPKT) through research, training and education initiatives, including the Malaysia–Cambridge Urban Platform, which focuses on areas such as housing affordability measurement, big data analytics, urban planning and evidence-based policymaking.

It added that effective implementation of the NHP would require continued engagement among the government, developers, financial institutions, academia and other housing stakeholders.

Rehda Institute chairman Datuk Jeffrey Ng Tiong Lip said the policy reflected several issues the institute had advocated, including demand-driven supply, demographic considerations and greater flexibility in housing financing.

“The next step is to ensure numerical targets remain guided by actual household needs. Ultimately, success should not simply be measured by how many homes are built or owned, but whether Malaysians have access to the right housing, in the right location, under a tenure and financial commitment that they can sustainably afford,” he said.

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