A house is the most important asset a person can have. Besides providing shelter and security, the location of your home can influence work decisions and access to facilities, helping you create the lifestyle that you want.
Affordable housing helps Malaysians access adequate and affordably priced homes in main cities and other locations. Affordable homes are usually funded by the government and are built by either government companies or private developers.
Data from the National Property Information Centre in Malaysia showed that the median house price had increased 93.9% from RM158,000 to RM320,000 between the years of 2011 and 2022.
Meanwhile, the average median salary of Malaysians is RM2,933 in 2020. As property prices continue to increase especially in places like Kuala Lumpur and possibly outpacing the growth of income, it’s important for people to have access to affordable homes.
The Types Of Affordable Housing In Malaysia
There are several types of affordable housing in Malaysia. According to PropertyGuru, affordable public homes have an average price of RM300,000 compared to private housing projects in Klang Valley that typically cost more than RM400,000.
Some affordable housing programmes are state- or territory-based so they’re only available in a particular state or territory.
#1 People’s Housing Programme (PPR)
The PPR was introduced with the aim to re-home residents in slum neighbourhoods. The programme is helmed by the National Housing Department under the Ministry of Local Government Development.
To be eligible for PPR homes, one has to be a first-time homebuyer with a household income of below RM3,000 per month and meets all other conditions set by the state government.
Applicants for the programme can choose to either buy or rent a unit. The selling price for PPR homes range from RM35,000 to RM42,000.
To ensure that residents are living in an adequate home, the size of PPR homes can’t be less than 700 sq ft. They usually are fitted with three bedrooms, one living room, one kitchen and two bathrooms.
There are also basic facilities for residents which are a community hall, prayer room, food stalls or commercial spaces, kindergarten, facilities for disabled persons, playground or open area for leisure activities and garbage site.
Check out the list of projects here.
#2 1Malaysia Housing Programme (PR1MA)
PR1MA provides affordable and high-quality homes to middle-income earners in Malaysia. As many PR1MA homes are built in strategic locations in major cities, they can be a great option for young homebuyers.
The application requirements for PRIMA homes are more flexible. Homebuyers can purchase PR1MA properties as first or second homes with an individual or combined household income of RM2,500 to RM15,000 every month.
PR1MA homes typically come with a price tag that range from RM100,000 to RM400,000, which covers quite a wide range of budgets for the middle working-class group.
The prices depend on the size of homes. PR1MA storey residences come in sizes ranging from 600 sq ft to 1,200 sq ft. PR1MA terrace home sizes are between 850 sq ft and 1,850 sq ft.
Check out the list of projects here.
#3 Malaysian Civil Servant Housing Unit (PPAM)
PPAM was launched to help civil servants with low and middle income buy affordable homes especially in prominent cities.
Application for PPAM homes is open to civil servants including those who have retired with a retiree card, civil servants on contract and permanent basis and children of retired civil servants.
Eligible civil servants can purchase PPAM homes priced from RM90,000 to RM300,000.
Check out the list of projects here.
#4 Regional Residency (formerly RUMAWIP)
Property prices in central places such as Klang Valley, which comprise of Kuala Lumpur, Putrajaya and some cities as well as towns in Selangor tend to be more expensive and above RM400,000.
The Regional Residency was created so that residents living in the Federal Territory of Kuala Lumpur can access affordable homes.
To buy a Regional Residency home, you have to be born, live, or work in the Federal Territory of Kuala Lumpur. You will also need to earn a monthly income of below RM10,000 or RM15,000 for married couples to qualify.
A standard Regional Residency home has three bedrooms, two bathrooms, one kitchen, living room, dining room and yard for strata properties.
Check out the list of projects here.
#5 Rumah Selangorku
Rumah Selangorku or My Selangor Home is reserved for residents in the state of Selangor.
Under this affordable housing scheme, Selangor residents can purchase storey and landed properties. The prices of properties depend on the types of homes you choose.
Storey House (Apartment)
- Type A: RM 42,000.00 per unit
- Type B: RM 100,000.00 per unit
- Type C: RM 150,000.00 per unit
- Type D: RM 200,000.00 per unit
- Type E: RM 250,000.00 per unit
Landed House (Town House & Terrace)
- Type A: RM 42,000.00 per unit (Town House)
- Type B: RM 100,000.00 per unit (Town House)
- Type C: RM 200,000.00 per unit (Town House)
- Type D: RM 250,000.00 per unit (Terrace House)
- Type E: RM 250,000.00 per unit (Terrace House)
To purchase the homes, you must not own any property in Selangor and will have to meet the income requirements as follows:
- Type A house: Combined spousal income of RM3,500 and below
- Type B house: Combined spousal income of RM7,000 and below
- Type C house: Combined spousal income of RM10,000 and below
- Type D, E and Special Type E house: Combined spousal income of RM14,500 and below
Check out the list of projects here.
How To Apply For Affordable Housing
You can apply for the affordable housing listed above online via the respective sites.
For PR1MA homes, you will have to go through an open ballot process for newly developed projects where homebuyers are chosen on a random basis. PR1MA homes are only available to Malaysian citizens who are 21 years old and above, single or married. Those who apply for a PR1MA home or their spouse should not have more than one property.
Do You Qualify For Affordable Homes?
There are plenty of affordable housing options for low to middle income earners in Malaysia. The PPR scheme was launched to resettle residents in slum neighbourhoods and offers affordable housing priced between RM35,000 and RM42,000.
Meanwhile, affordable housing like PR1MA offer low- and middle-income owners modern quality homes in prime locations in cities. This can benefit young homebuyers working in the city and looking to buy their starter home.
With a lower price tag, affordable homes are introduced to help Malaysians own an adequate home, so they have a roof over their heads. They are not for meant for gaining profits so there are certain restrictions when it comes to reselling or renting out the property.
PR1MA homes must be purchased for own stay and not to be sub-let. Rumah Selangorku homes can’t be rented out and sold in the first five years of purchasing the property.
In addition, homes under the PPAM scheme can’t be sold or transferred without the approval from government except for spouse or children.
| Affordable Home | Price | Location | Size (sq ft) | Requirements |
| PPR | RM35,000 – RM42,000 | Nationwide | No less than 700 | Household income of below RM3,000 per month |
| Rumah Selangorku | RM42,000 – RM250,000 | Selangor | 450 – 900 | Combined spousal income of RM14,500 and below |
| Regional Residency | RM52,000 – RM300,000 | Kuala Lumpur | 800 to 900 | Monthly income of below RM10,000 or RM15,000 for married couples |
| PPAM | RM90,000 – RM300,000 | Nationwide | – | Monthly income below RM10,000
|
| PR1MA | RM100,000 – RM400,000 | Nationwide | 600 – 1,850 | Individual or combined household income of RM2,500 to RM15,000 per month |
Featured Image Credit: PR1MA
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