18/09/2025

PROPERTY THURSDAY | SEPT 18, 2025

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Why Malaysia’s housing push matters now A S Malaysia charts its devel opment path under the recently announced 13th Malaysia Plan (13MP), a Slowing market signals demand for policy intervention stabilise and supportive policies were announced. This uptick in demand likely reflects improving consumer sentiment. serve as a practical and accessible pathway to homeownership, especially as newly constructed affordable units will take time to materialise. Pesuruhjaya Tanah Persekutuan, Wakaf and Malay Reserve land, and promotes large-scale adoption of industrialised building systems and Building Information Modelling to speed up

This renewed focus on affordable housing could not be more timely. According to National Property Information Centre, Malaysia’s property market experienced a slowdown in the first quarter of 2025, with transaction values falling by 8.9% year-on-year to RM51.42 billion, and transaction volumes declining by 6.2%. Compounding this is the recent downward revision of Malaysia’s 2025 GDP growth forecast by Bank Negara Malaysia, now projected at 4% to 4.8%, reflecting growing economic uncertainty. Yet despite these challenges, demand for affordable housing remains strong. Using the median income of the lowest quartile of the B40 segment as a benchmark, homes would need to be priced below RM300,000 to be considered affordable. Between December 2024 and April 2025, enquiries for homes under RM300,000 fell by 11.8% amid growing economic uncertainty. Encouragingly, search enquiries on PropertyGuru rebounded by 29% as economic sentiment began to

five-year roadmap from 2026 to 2031, housing reform takes centre stage in a timely and strategic move. With the national economy facing headwinds from global tariffs, persistent geopolitical tensions, and elevated uncertainty, the government’s focus on sustainable, inclusive development is both necessary and forward looking. Affordable housing is a core pillar of 13MP, with the government targeting the delivery of one million affordable homes by 2035. This is complemented by expanded initiatives such as the Housing Credit Guarantee Scheme, Rent-to-Own (RTO) programmes, and the formation of a centralised national housing agency to coordinate affordable housing supply across Malaysia. These efforts are aimed not only at improving homeownership access for the B40 and M40 groups but also at reshaping the broader housing ecosystem to be more equitable, efficient and resilient.

Location still matters: Urban centres in focus A key question emerging from 13MP is not just how many homes will be built, but where they will be located. PropertyGuru’s July 2025 data shows that low-income households continue to prioritise access to jobs, transport, and essential services. States such as Kuala Lumpur, Selangor, Johor, and Penang remain high-demand areas due to their urban amenities and economic opportunities. Enquiry volumes for homes under RM300,000 remain elevated in these states, with Kuala Lumpur registering the sharpest rebound in recent months. Consumers in this segment are gravitating towards neighbourhoods with older housing stock, established public housing, and close proximity to transit routes and economic hubs. Structural reforms can drive long term impact The Rent-to-Own (RTO) model can

For households in the bottom income quartile of the B40 group, where 30% of median monthly income translates to a rental affordability threshold of around RM1,500, demand for rental properties under this level is growing steadily. This model, if effectively implemented under 13MP, RTO can act as a near-term bridge for households facing immediate affordability challenges. 13MP also outlines critical structural reforms such as the mandatory adoption of a build then-sell model to reduce the risk of abandoned projects, amendments to the Housing Development Act to strengthen consumer protection, and plans for an integrated housing data repository to improve planning and oversight. These are long-awaited interventions that address persistent inefficiencies in the housing market. Crucially, the plan encourages urban redevelopment of underutilised areas, utilisation of

construction and reduce costs in the long term. These structural changes point to a more holistic and future-proof approach to housing policy. A foundation for inclusive growth At PropertyGuru and iProperty, we believe that access to affordable, well-located housing is foundational to building a more inclusive and upwardly mobile society. 13MP represents a clear opportunity to recalibrate Malaysia’s housing ecosystem, aligning supply with real demand and embedding long-term resilience into our urban planning. By prioritising accessibility and accountability in housing delivery, Malaysia is not only meeting a pressing market need but also laying the groundwork for a more equitable future. This article is contributed by PropertyGuru and iProperty country manager Malaysia, Kenneth Soh. with RM1.26b project KUALA LUMPUR: OSK Holdings Bhd’s property arm OSK Property Holdings Bhd via Aspect Dynamic Sdn Bhd, a wholly owned subsidiary, has entered into a sale and purchase agreement to acquire three parcels of freehold land in Rawang, Selangor. The lands measure approximately 14.477 acres, with a total purchase consideration of RM58 million. This acquisition represents the group’s first foray into the Rawang township, capitalising on the growing demand for affordable residential and commercial developments in the area. Situated within the established and growing township of Bandar Country Homes, the newly acquired lands are earmarked for residential and commercial use. The acquisition underscores OSK Property’s presence in a fast-growing corridor while supporting the rising need for affordable and lifestyle-driven housing solutions. “This acquisition marks an important milestone for OSK Property as we extend our footprint into the northern Klang Valley with our maiden entry into Rawang. The Bandar Country Homes township and its surrounding communities offer a myriad of lifestyle choices which has been constantly developed and improved over a period of 30-odd years. We believe that it is timely for us to enter a new market and participate in the northern Klang Valley growth corridor by unlocking new opportunities that complement our existing portfolio while creating thriving lifestyle spaces that benefit the community. This is a step forward in reinforcing our vision of creating sustainable developments that meet evolving market needs,” said the deputy group managing director Ong Ju Xing. The proposed acquisition is aligned with the group’s strategy of focusing on mature markets with faster development cycles. The three land parcels are expected to generate a GDV of RM1.26 billion. OSK buys land for debut in Rawang

KSL targets RM1.2b sales for FY25 after robust H1 JOHOR BHARU: Johor property developer KSL Holdings Bhd is targeting new property sales of RM1.2 billion in the financial year ending Dec 31, 2025 (FY25), buoyed by resilient first-half sales, robust property demand, and key market catalysts in Johor and Selangor.

For the first half ended June 30, 2025 (1H’25), KSL secured RM491 million in new property sales, primarily from residential and mixed-use developments in Johor Bahru. The group maintained a robust unbilled sales of RM684 million as at June 30, 2025, to be recognised until 2028. The strong foundation reflects continued market confidence in the group’s projects and its strategic presence across key growth locations. The group is optimistic of launching a total of RM3.7 billion worth of development projects in FY25, strategically located across multiple locations in Johor Bahru and Klang Valley consisting of residential, mixed development, and industrial projects. Projects include the highly anticipated first phase KSL Business Park @ Ulu Tiram, an industrial project with an estimated GDV of RM450 million, and a mixed-use development with GDV of RM463 million at Blossom Square @ Setia Alam, which includes both high-rise residential units (Haus Residence) and shop lots. For the second quarter ended June 30, 2025 (Q2’25), the group recorded a 13.6% growth in revenue to RM364.5 million from RM321 million of the same quarter a year ago, attributed to increased recognition from ongoing projects. However, the group had recorded higher administrative expenses and finance costs due to increased scale of developments and launches. As a result, net profit declined marginally 1.4% to RM113 million from RM114.6 million in the previous corresponding quarter. Executive chairman Ku Hwa Seng said: “KSL’s resilient 1H’25 performance demonstrates the strength of our diversified business model. Our mix of property development with stable recurring income from our malls and hotels provides a powerful model for growth, as we

KSL banks on Johor-Singapore growth corridors to drive FY25 sales. meet rising market demand in both Johor and Selangor.

group revenue was RM611.2 million and net profit was RM165.8 million. This compares to a revenue of RM649.2 million and a net profit of RM215.6 million in the same period last year, with the lower profit in the current period primarily attributed to the timing of project recognition. KSL’s development portfolio has a total ongoing GDV of RM3.5 billion as at June 30, 2025. Its performance is further supported by stable income from its property investments, including its flagship KSL City Mall and KSL Hotel & Resort in Johor Bahru, as well as the KSL Esplanade Mall and KSL Esplanade Hotel in Klang. KSL’s upcoming launches in Johor Bahru and Selangor are poised to benefit from favourable market trends and are expected to strengthen its position as a leading property developer in these key regions.

We are also actively capitalising on the powerful tailwinds from the Johor-Singapore Special Economic Zone and the Johor Bahru– Singapore Rapid Transit System Link, and our robust pipeline in key corridors positions us perfectly to capture a significant share of this trend.” The property development segment was the primary driver of the group’s performance, contributing RM292.4 million in revenue in Q2’25, 12.5% increase from RM260 million in Q2’24. The group’s property investment (hotels and malls) segment also delivered strong contributions of RM72.2 million in revenue, representing a 19.2% increase from RM60.5 million previously. For the cumulative first half of 2025 (1H’25),

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