Selangor’s Affordable Housing Market Surges: What It Means for Buyers & Investors in 2025-2028
🏡 RM300,000 and Below Homes on the Rise: A Game-Changer for Property Buyers
KUALA LUMPUR, MALAYSIA – The supply of affordable housing in Selangor is set to increase significantly from 2025 onwards, with a major push in 2027 and 2028. New research from EdgeProp’s 2025 New-Launch Report shows that homes priced RM300,000 and below will take center stage, reflecting growing demand, government-backed policies, and evolving market trends.
Here’s what homebuyers, property investors, and first-time homeowners need to know about Selangor’s affordable housing boom.
📊 1️⃣ Affordable Housing Growth: What to Expect in 2025-2028
In recent years, affordable homes (≤ RM300,000) have experienced supply fluctuations, but projections indicate a strong comeback:
✔ 2025: 13% of new launches (slightly lower than previous years).
✔ 2026: 17.1% share – indicating an upward trend.
✔ 2027: 48.5% of all new launches will be affordable homes.
✔ 2028: A staggering 68.6% of new projects will focus on low-cost housing, making it the dominant property segment.
💡 Key Takeaway: The next 3-5 years present unmatched opportunities for first-time homebuyers and middle-income families to secure affordable homes.
🏠 2️⃣ Mid-Tier Housing Remains Strong, but Luxury Properties Decline
While affordable homes gain momentum, the RM300,001 – RM600,000 category continues to dominate the market:
✔ 2025 & 2026: 38% of new launches fall within this price range.
✔ 2027-2028: Expected to hold steady, though overshadowed by the affordable housing surge.
Meanwhile, higher mid-tier properties (RM600,001 – RM900,000) are growing gradually:
✔ 2025: 21% of the market.
✔ 2026: Rises to 24.6%, reflecting demand from upgraders and working professionals.
🚨 Luxury Homes Cooling Off:
📉 RM900,001 – RM1.2 million: Declining from 11.3% in 2025 to 8% in 2026.
📉 Above RM1.2 million: Drops from 16.6% in 2025 to 12.3% in 2026.
🔹 Why? Rising living costs, increased mortgage rates, and a shift in buyer preferences toward value-driven properties.
📈 3️⃣ Why the Sudden Shift Towards Affordable Housing?
🏛 Government Commitment:
The Madani government is prioritizing affordable housing development, ensuring:
✔ More supply of low-cost homes for first-time buyers.
✔ Easier financing options through government-backed incentives.
✔ Higher developer participation in affordable housing schemes.
🏗 Developers Aligning with Market Demand:
✔ Major developers are pivoting toward mass-market, affordable homes to meet demand.
✔ Strategic locations near transit hubs (MRT, LRT, highways) are becoming prime targets for budget-friendly projects.
💰 Investor-Friendly Market Conditions:
✔ High rental demand for affordable units in urban areas.
✔ Strong government backing reduces investment risks.
✔ Low vacancy rates due to consistent demand from young professionals, families, and students.
📌 4️⃣ Should You Buy a Property in 2025-2026 or Wait Until 2027-2028?
💡 If You’re a First-Time Buyer:
👉 2025-2026: A good time to secure mid-tier housing before prices rise further.
👉 2027-2028: Ideal if you’re looking for sub RM300K properties, as supply will be at an all-time high.
💰 If You’re an Investor:
✅ Rental demand in urban areas will be strong for affordable units.
✅ 2025-2026 offers better financing options, before potential interest rate adjustments.
✅ 2027-2028 will present bulk-buy opportunities as more developers enter the affordable segment.
🚨 Pro Tip: Watch out for transit-oriented developments (TODs) near MRT/LRT stations, as these will be highly sought after.
🔍 Key Takeaways: Why 2025-2028 is a Critical Period for Property Buyers
🔹 Affordable housing is back! 🏡 RM300,000 and below homes will dominate new launches by 2027-2028.
🔹 Mid-tier properties remain strong, but luxury properties are losing momentum.
🔹 Government-backed incentives are making homeownership more accessible than ever.
🔹 Investors can benefit from rising demand for affordable rentals, especially in strategic locations.
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