The government has introduced several measures to manage rising house prices and improve access to affordable homes, particularly for first-time buyers. These steps are already in force and focus on price controls, closer monitoring of housing projects, and easier access to home financing.

Affordable Home Prices Capped At RM300,000

One key measure is the introduction of a ceiling price for affordable homes under the National Affordable Housing Policy. The maximum price has been set at RM300,000 to help ensure homes remain within reach for lower- and middle-income households.

This cap is intended to guide both public and private housing developments classified as affordable housing, offering buyers clearer expectations when planning their home purchase.

Price Mapping Links Home Prices To Local Incomes

The Ministry of Housing and Local Government has also implemented affordable housing price mapping to align home prices with local income levels. This mapping is based on state and district median household income data from the Household Income and Expenditure Survey 2024.

The price mapping serves as a reference for determining suitable house prices in each locality. Buyers can access this information through the affordable housing information dashboard on the Malaysian Urban Observatory website, helping them assess whether prices in their area are realistically within their financial capacity.

Tighter Monitoring Of Housing Projects Through HIMS

To strengthen oversight of housing developments, the ministry has rolled out the Housing Integrated Management System. This online system processes housing development licence applications, as well as advertising and sales permits.

The system also acts as a central source of housing data for monitoring and reporting. It allows earlier intervention in projects that show signs of delay or financial risk, which can help protect buyers from stalled developments and incomplete projects.

House Prices Continue To Rise Nationwide

Despite these measures, national data shows that house prices remain on an upward trend. According to the National Property Information Centre, the Malaysian Housing Index reached 227.3 points in the first half of 2025, with the average house price standing at RM490,376 per unit.

This highlights the ongoing affordability challenge, especially for first-time buyers who may struggle to bridge the gap between market prices and their borrowing capacity.

Financing Support Expanded For First-Time Buyers

Alongside price controls, the government has strengthened support for first-time home buyers through the Housing Credit Guarantee Scheme. The scheme provides guaranteed financing of up to RM500,000, with a focus on B40 and M40 households, including individuals without fixed income.

Under the scheme, eligible buyers can access housing loans of up to 120% of the property price. A step-up financing option is also available, offering lower initial monthly instalments that gradually increase as the borrower’s income grows.

How Buyers Can Use Price Caps And Loan Support

For buyers looking at affordable housing, the RM300,000 price ceiling offers a clear benchmark when comparing available units. Checking whether a project falls within this cap can help buyers avoid homes that may stretch their monthly repayments beyond a manageable level.

At the same time, financing options under the Housing Credit Guarantee Scheme can help bridge gaps in upfront costs and loan eligibility. Understanding how guaranteed financing and step-up instalments work allows buyers to plan repayments more realistically, especially in the early years of home ownership.

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