The Housing Dilemma in Malaysia
For years, Malaysians have struggled to own a home. While wages have risen slowly, house prices have increased faster.
According to University Technology Malaysia (UTM), as of 2023, the average home cost around RM467k, far above what most B40 and even M40 families can afford.
While some areas saw new launches, only 22% of residential units launched in Q3 2024 were sold, based on data from the National Property Information Centre (NAPIC).
This shows a clear gap between what’s being built and what people can actually afford.
Although there were nearly 399k property transactions in 2023 (valued at RM200 billion), many were not affordable.
So, when the government announced Kota Madani in Putrajaya, some Malaysians saw hope, but many more wondered: who is it really for?
Understanding Kota Madani
Recently, the government has introduced Kota Madani — a large-scale project that covers 102 acres, with plans to build 10k residential units for up to 30k people.
It aims to be a model city built on the CHASE (Clean, Healthy, Advanced, Safe, and Eco-friendly) City inspired by Madani values.
The project includes vertical housing, TVET schools, clinics, a mosque, and essential public services like police and fire stations, all built to create a complete community in Putrajaya.
According to Malay Mail on June 3, Minister in the Prime Minister’s Department (Federal Territories) Datuk Seri Dr Zaliha Mustafa said that Kota Madani will include modern features such as artificial intelligence, digital infrastructure, and green mobility systems. These upgrades are meant to support a low-carbon, secure and smart city.
Dr Zaliha called this a long-term strategic investment as it reflects the Madani government's values, and the project has received support from Prime Minister Datuk Seri Anwar Ibrahim.
Phase 1 is expected to be ready by the end of 2027, with 3,000 units and a vertical school.
Affordability Concerns: Who Can Really Benefit?
Malaysia divides income groups into B40, M40, and T20. The B40 group, which earns the least, often struggles the most to buy a house.
Let’s look at prices. Based on Q3 2024 data by NAPIC, only 22.6% of new units launched were priced below RM300,000 — the sweet spot for B40 and lower M40 groups.
Meanwhile, 42.6% were priced between RM500,001 and RM1 million — clearly out of reach for most Malaysians.
It’s also important to look at the overhang market, those unsold homes that no one is buying.
NAPIC data shows that 31.9% of these units are priced between RM 300,000 to RM500,001. That’s way above what many average Malaysians can afford.
Most Malaysians still feel house prices are too high.
So that brings us back to Kota Madani.
Will Kota Madani be different, or will it just add more expensive homes to the pile?
Lessons from Forest City
Do we still remember Forest City?
Back in 2014, as of BBC, China’s biggest property developer, Country Garden, launched a massive project in Malaysia called Forest City.
It was part of China’s Belt and Road Initiative and was supposed to be an eco-friendly city with everything — golf courses, offices, restaurants, even a waterpark.
It sounded like a dream city, but it wasn’t built for Malaysians.
Most of the homes were priced for wealthy Chinese buyers looking for second homes. Prices were too high for most locals, and it was built on artificial islands far from Johor Bahru. This made it even harder to attract residents.
That's why many call it a "ghost city."
According to Channel Newsasia (CNA) on June 6, in August last year, the Johor government suggested including Forest City in the new Johor-Singapore Special Economic Zone (SEZ).
That plan moved forward in January 2025, when both governments signed the agreement.
To help revive Forest City, the Malaysian government has also named it a Special Financial Zone, hoping to attract international investors and businesses.
But let’s be honest, Forest City is proof that big ideas don’t mean much if they don’t work for the people living here.
What Malaysian Are Looking For: Transparency and Progress Monitoring
People aren’t asking for miracles.
They just want the government to be transparent, tell us who can apply, what the price range is, and how long the project will take.
Give regular updates. Open up channels for public feedback.
If Kota Madani is really about building a better future, then the people who actually need affordable homes should be part of the conversation.
Public feedback channels should be open so that the project truly serves the people who need affordable housing, not just politicians or investors.
Can This Be Different?
Kota Madani promises a lot. If done right, it could set a new benchmark for affordable urban living.
That means fair pricing, honest timelines, and a clear plan for who it’s really meant to serve.
Doris Tan (doristanwl@gmail.com) is a content creator under the Newswav Creator programme, where you get to express yourself, be a citizen journalist, and at the same time monetize your content & reach millions of users on Newswav. Log in to creator.newswav.com and become a Newswav Creator now!
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