MANY Malaysian millennials face increasing challenges in achieving homeownership, as rising property prices, stagnant wages, and growing debt make it difficult to save for a down payment.
According to property market data, housing prices have surged by up to 8 per cent annually, while wages have only increased by 2 per cent.
EXAL Group Managing Director Albert Ko highlighted that millennials are often burdened with monthly financial commitments, including car loans, credit card debt, and student loans, which further limit their ability to accumulate savings for a home purchase.
To address these challenges, Ko stressed that property developers must explore solutions that align with the financial constraints and preferences of younger buyers.
He emphasised that homeownership provides significant long-term financial benefits, particularly through equity building, which is crucial for millennials seeking financial stability.
“Unlike renting, which offers no return on monthly payments, owning a property allows individuals to build equity over time as the home appreciates in value,” he said.
“In Malaysia’s fast-growing property market, property values are expected to continue rising, making early ownership an effective strategy for wealth accumulation.
“However, the same rising values, coupled with limited savings among millennials, mean that strategic solutions are necessary to turn this vision into reality,” he said.
Ko suggested that millennials adopt disciplined savings strategies, such as the 50/30/20 budgeting rule, and explore high-interest savings accounts to build a housing fund.
He also encouraged young buyers to leverage government initiatives such as Skim Rumah Pertamaku, which offers 100 per cent financing, and PR1MA, which provides affordable housing options to reduce financial strain.
“Rent-to-own schemes and joint ownership with family members offer alternative pathways to property ownership.
“Additionally, maintaining a strong credit score, exploring properties in suburban areas with growth potential, and staying informed about housing incentives can make homeownership more attainable.
“With these strategies, millennials can turn aspirations into reality and benefit from the financial security that comes with owning property.”
Ko further noted that some developers have begun introducing flexible and customisable housing options, catering to environmentally conscious buyers while addressing affordability concerns.
“By incorporating energy-efficient designs and sustainable materials, EXAL reduces long-term utility costs, making homeownership more financially viable.
“Additionally, properties with modular designs enable buyers to personalise spaces according to their evolving needs, adding long-term value without the cost of extensive renovations,” he said.
Flexible and customisable living opportunities
Property developers are increasingly adapting to shifting home-buying preferences by embracing the concept of Flexible and Customisable Living.
This approach, explained Ko, focuses on designing homes with adaptable layouts that cater to different life stages and unique lifestyle needs.
Inspired by concepts such as Singapore’s “White Flat Layout” and the Netherlands’ “Flex Block”, these spaces can be personalised and expanded over time, offering a dynamic and resource-efficient solution to modern housing challenges, including urban density, sustainability, and the growing demand for bespoke living environments.
“Local projects like Penang’s ‘The Light City’ and Gamuda Land’s ‘Gamuda Garden’ in Selangor are prime examples of how this approach is being implemented in Malaysia to benefit young homebuyers.
“This approach provides an affordable entry point for homebuyers, enabling them to start with smaller, versatile spaces that can evolve as their needs change.
“This adaptability resonates strongly with families and individuals seeking a personalised yet cost-effective living experience,” he said.
Beyond flexibility, these homes champion sustainability by minimising construction waste and reducing energy consumption, supporting a low-impact lifestyle.
In Malaysia, where achieving net-zero carbon emissions by 2050 is a national goal, Flexible and Customisable Living aligns seamlessly with environmental objectives. It offers eco-friendly, adaptable spaces that meet the needs of today’s dynamic lifestyles while reflecting modern priorities.
One example is SÓL Estate in Kuching, which incorporates modular designs that prioritise sustainability while offering long-term housing flexibility.
“This initiative particularly appeals to millennials, who value flexibility, personalisation, and homes that support their fast-paced, on-the-go lifestyles.
“Phase 2 of SÓL Estate features expandable Courtyard Homes, designed for flexible living, seamlessly blending nature with sustainability. These homes encourage apex sustainable living, with the added benefit of incremental courtyards,” he said.
Offering sustainable living options
To attract millennial homebuyers, Ko emphasised that property developers should prioritise sustainable, green building options that align with millennials’ lifestyle values.
“Features such as solar panels, energy-efficient lighting, and high-performance insulation can significantly lower energy consumption, reducing utility bills while minimising environmental impact.
“Water conservation systems, including rainwater harvesting and low-flow fixtures, further cut operational costs and promote eco-conscious living.
“Additionally, using non-toxic, eco-friendly materials in construction enhances indoor air quality, improving residents’ health and overall quality of life — key concerns for millennials who prioritise wellbeing and sustainability.”
Ko highlighted Malaysia’s green building frameworks, such as the Green Building Index (GBI) and GreenRE, which provide measurable sustainability standards in construction and support the nation’s net-zero carbon goals.
“These certifications have already facilitated significant progress, with over 1,300 projects collectively reducing Malaysia’s carbon footprint by 1.75 million tonnes of CO2 annually.
“To further encourage sustainable development, government initiatives such as tax incentives, green loans, and the Green Technology Financing Scheme (GTFS) provide crucial financial support.
“By integrating these features and leveraging available resources, developers can strategically position themselves to attract eco-conscious buyers while contributing to a greener, more sustainable future,” he said.
Ko stressed that property developers must align their strategies with government initiatives and prioritise affordable, sustainable housing solutions to encourage millennial homeownership.
“By incorporating energy-efficient designs, offering innovative financing solutions, and utilising government programmes and green technology incentives, developers can make homeownership more accessible.
“Addressing millennial priorities not only drives demand but also fosters a loyal customer base, contributing to both industry growth and the nation’s economic and social development.”
