ChuahThe Real Estate and Housing Developers’ Association Malaysia (Rehda) has called on policymakers to reassess the blanket 30% affordable housing allocation imposed on new developments, arguing that the requirement is contributing to a growing number of unsold units.
According to findings presented on March 13 from Rehda’s latest Property Industry Survey and Property Sentiment Survey, the mandated quota often fails to reflect actual demand at the local level. Developers say this mismatch has led to an accumulation of overhang units, particularly in locations where buyers are either unable or unwilling to purchase the designated affordable units.
Industry players highlight that while the intent behind the policy is to improve housing accessibility, a one-size-fits-all approach may be counterproductive. In certain markets, demand may skew toward different price segments, leaving affordable units slower to move despite broader housing needs.
Rehda is advocating for a more flexible, data-driven framework that allows adjustments based on location-specific demand. The association believes such a move could help reduce overhang levels, improve project viability, and ensure that housing supply better aligns with actual market needs.
