The Ministry of Housing and Local Government (KPKT) has launched the National Housing Policy 2026–2035, setting a target of delivering 1 million affordable homes by 2035. Known in Malay as the Dasar Perumahan Negara 2026–2035 (DRN 2026–2035), the policy will serve as Malaysia’s main strategic direction for housing development over the next decade.
The policy was officially launched by Housing and Local Government Minister Nga Kor Ming at the KLGCC Convention Centre in Kuala Lumpur on 10 August 2026.
Built around the theme “Humanising Housing”, it aims to shift Malaysia’s approach from simply building houses to creating quality, safe, inclusive, sustainable and liveable communities.
DRN 2026-2035 Addresses Malaysia’s Housing Challenges
Developed in line with the Malaysia MADANI aspirations, the 13th Malaysia Plan and the United Nations Sustainable Development Goals, the policy seeks to address several major housing challenges.
These include rising living costs, changing demographics, housing prices that do not match local incomes, an oversupply of unsold properties and delayed or abandoned projects.
DRN 2026-2035 contains six focus areas, 17 strategies and 59 action plans, which will be implemented progressively until 2035.
Nga said the policy represents the government’s commitment to ensuring Malaysians have access to quality and affordable housing.
“Quality housing is not merely about providing shelter. It forms the foundation for prosperous families, harmonious communities and sustainable national development,” he said.
He added that KPKT would strengthen cooperation with state governments, local authorities, financial institutions, property developers and other stakeholders to ensure the initiatives deliver tangible benefits to the people.
Six Main Focus Areas Under DRN 2026-2035
1. Developing Liveable Neighbourhoods And Cities
The first focus aims to coordinate housing development with local planning and public transportation.
It includes promoting Transit-Oriented Development, where homes are built close to public transport, workplaces and essential amenities.
Urban renewal projects will also be planned based on evidence, including building condition reports and cost-benefit analyses, while protecting the rights of existing communities.
2. Building Homes According To Actual Demand
KPKT plans to use local data to determine what types of homes should be built and where they are most needed.
Housing projections will be prepared at the district and mukim levels based on existing supply, vacancy rates, household incomes, housing types and property prices.
DRN 2026-2035 also covers housing schemes for senior citizens, home modification grants for persons with disabilities, transitional housing, worker accommodation, housing on waqf land and community-led housing.
3. Ensuring Quality Housing For Everyone
New developments will be encouraged to comply with national housing standards and Universal Design Guidelines, making homes more accessible to senior citizens and persons with disabilities.
The policy also promotes modern construction technology, green certification and improved building maintenance.
For strata properties, sale and purchase agreements may include estimated maintenance and replacement costs to help buyers understand the long-term cost of ownership.
4. Protecting Homeowners And Tenants
Under DRN 2026-2035, the government plans to introduce a Residential Tenancy Act to create a more transparent, secure and balanced rental market.
It will be supported by a residential rental registration system and electronic tenancy agreements.
Other initiatives include:
- Rent-to-Own guidelines
- Affordable private rental schemes
- Incentives for developers offering affordable rental homes
- Renting completed but unsold homes
- Housing assistance for eligible homeless individuals
The rights of original communities affected by urban renewal projects will also be protected.
5. Expanding Housing Financing Options
Affordable housing prices will be more closely aligned with local incomes, needs and market conditions.
KPKT will introduce Affordable Housing Guidelines and assess homeownership and rental affordability according to location.
Financing options proposed under DRN 2026-2035 include the Housing Credit Guarantee Scheme, stepped financing, Rent-to-Own, Shared Ownership and long-term fixed-rate mortgages.
Special financing mechanisms will also be considered for housing developments led by communities and cooperatives.
6. Strengthening Laws And Housing Delivery
The government plans to strengthen housing laws, approval processes, data management and institutional capabilities.
One of the biggest changes proposed under DRN 2026-2035 is the gradual transition from Sell-Then-Build to Build-Then-Sell, which could reduce buyers’ exposure to delayed or abandoned projects.
Other measures include:
- A new Property Developer Act
- Amendments to the Uniform Building By-Laws
- Option to Purchase and Sunset Clause mechanisms
- Consideration of unsold housing stock before approving new projects
- More professional building and property managers
- Amendments to the Strata Management Act 2013
The roles of Joint Management Bodies, Management Corporations and Commissioners of Buildings will also be strengthened.
Big Data To Improve Housing Planning
KPKT plans to develop Big Data Analytics for the housing sector to improve planning and reduce the number of unsold homes.
The system will analyse housing stock, vacant properties, unsold units, household incomes, local property prices and actual demand.
This information will eventually be integrated with development approval and housing management systems. It could help authorities avoid approving too many homes in locations where demand is weak.
DRN 2026-2035 Will Be Implemented In Stages
The policy’s 59 action plans will be introduced progressively between 2026 and 2035.
Three actions will begin in 2026:
- Housing projections at the district and mukim levels
- Affordable Housing Guidelines
- Amendments to the Uniform Building By-Laws
Another 22 action plans will begin in 2027, including the Residential Tenancy Act, Rent-to-Own guidelines, a new Property Developer Act and the transition towards Build-Then-Sell.
A further 16 plans will start in 2028, followed by 15 plans in 2030. These will include Shared Ownership, affordable rental schemes, community-led housing and amendments to the Strata Management Act.
DRN 2026-2035: More Than Building 1 Million Homes
DRN 2026-2035 goes beyond its target of delivering 1 million affordable homes by 2035.
It proposes comprehensive changes to how homes are planned, financed, built, sold, rented and managed across Malaysia.
If implemented effectively, its six focus areas, 17 strategies and 59 action plans could create a housing system that is more affordable, transparent, data-driven and responsive to the needs of Malaysians.
For more information about DRN 2026-2035, visit https://go.gov.my/lt/drn.
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