The key to smarter housing decisions depends on comprehensive information

By Joseph Wong

Accurate and comprehensive data is essential for ensuring that housing supply aligns with market demand. Without reliable information, policymakers, developers and investors risk misallocating resources, leading to affordability challenges, mismatched housing types and market inefficiencies. 

By leveraging real-time data on income levels, household preferences, population growth and regional trends, stakeholders can make informed decisions that address the needs of different demographics. Hence, to create a more balanced and sustainable housing market, transparent data collection, technology in housing analytics and data-driven policies are vital.

However, as of September last year, the National Property Information Centre (Napic) stopped providing information on who is buying and selling property, hence, it is not impossible to retrieve demographic-related data. 

“We have some information given to us on the primary and the secondary markets before but we can’t get it now. It’s not available to us now,” said VPC Asia Pacific managing director Datuk Mani Usilappan, a chartered surveyor of more than 40 years' experience and retired Valuation and Property Services Department director-general.

“Whether younger or older people are buying…. Now it is impossible to say who is buying,” he said at a press conference during the 17th Malaysian Property Summit 2025 organised by the Association of Valuers, Property Managers, Estate Agents and Property Consultants in the Private Sector, Malaysia (PEPS).

Without the data, it is unclear whether property developers are building according to buyers' needs or if the strategies and policies of the Ministry of Housing and Local Government (KPKT) are suitable and effective, he explained.

Moreover, he pointed out that the few who are able to track the market are mostly involved in the primary market. In contrast, the majority of property transactions occur in the secondary market.

The hidden cost of missing data

In an industry where data drives decisions, the recent move by Napic to stop providing demographic-related property transaction data has been sending ripples through Malaysia’s real estate sector. Without insights into who is buying and selling properties, developers and investors are left navigating the market blindly—a situation that could lead to inefficiencies, misaligned supply and affordability issues.

It is a given that accurate data is essential to ensure that the housing supply meets the actual needs of buyers. Developers rely on transaction insights to determine what type of properties to build, at what price points and in which locations. Without such data, the industry faces the risk of:

• An oversupply of mismatched properties, where high-end units flood the market while demand for affordable homes remains unmet.
• Pricing inconsistencies, making it difficult for buyers to determine fair market value.
• Inefficient resource allocation, leading to projects that fail to attract buyers or remain vacant.

A possible return of the overhang issue

The declining property overhang in Malaysia has been a positive sign for the real estate market but this progress could be reversed if developers lack access to crucial buyer data. Without accurate market insights, developers may misalign supply with demand, leading to higher unsold inventories and stagnation in certain areas.

Without proper data, developers may overproduce luxury properties, leaving middle- and lower-income buyers with limited affordable options. The lack of suitable housing could further exacerbate affordability issues, slowing down property sales. 

Moreover, developers may build in less strategic locations, leading to properties that struggle to attract buyers. Perak’s recent surge in property overhang highlights this issue, as many unsold units are in less-than-ideal locations. The risk of repeating past mistakes increases, making it harder to clear unsold units.

Left in the dark

KPKT, which plays a key role in ensuring housing policies benefit the right groups, now faces a significant information gap. The lack of demographic data makes it difficult to assess:

• Whether first-time buyers and younger demographics are actively entering the market.
• If policies supporting affordable housing are reaching the intended audience.
• How regional and income-level trends influence housing demand.

At the same time, investors rely on market data to evaluate risks and opportunities before committing to projects. Without clear buyer profiles, developers and financial institutions may become more cautious, slowing down funding for new developments.

A market lacking transparency

Real estate thrives on transparency. The ability to track who is buying, what they are buying and at what price points is critical for maintaining investor confidence. With Napic’s decision, the market now faces increased speculation and uncertainty, as buyers and sellers are left without a clear picture of market movements.

Some potential risks include:

• A rise in speculative investments, as investors may rely on assumptions rather than data.
• Uncertain property valuations, making financing and mortgage approvals more complicated.
• Reduced investor confidence, leading to slower growth in the real estate sector.

Are younger buyers being left behind?

One of the biggest concerns is whether first-time homebuyers and younger demographics are being sidelined. If data on buyer age groups is no longer available, it becomes impossible to track whether housing policies and incentives are helping young professionals enter the market or if they are being outpriced.

A lack of information could result in:

• Developers prioritising luxury projects over affordable housing, assuming demand exists at the higher end.
• A widening homeownership gap with younger buyers struggling to find suitable entry points into the market.
• Missed opportunities for policy adjustments, as the government lacks insights into homeownership trends.

The bumpy road ahead

For Malaysia’s real estate industry to thrive, transparent data collection and data-driven policies are crucial. Technology in housing analytics could help fill some of the gaps, but without access to key demographic insights, market inefficiencies and misallocations will persist.

To create a more balanced and sustainable property market, the industry must advocate for better data-sharing policies, ensuring that stakeholders—from developers to investors and homebuyers—have the necessary insights to make informed decisions.

If the lack of transaction data continues, Malaysia’s property market risks stagnation, speculation and a widening gap between supply and demand. “All this boils back to what kind of information is coming out,” said Mani. Now, more than ever, data must be at the heart of real estate decision-making.

"Now it is impossible to say who is buying," Mani said

Without reliable data, developers and
investors risk misallocating resources,
leading to market inefficiencies and
unsold properties, said Subramaniam.

Sulaiman pointed out that buyer sentiments remain divided.

(Sidebar)

The power of data: Navigating Malaysia’s ever-changing property landscape

In an era of economic shifts, evolving consumer behaviour and rapid technological advancements, the ability to navigate Malaysia’s property sector effectively has never been more crucial. As market trends fluctuate and buyer sentiments remain mixed, data-driven insights have emerged as the foundation for strategic decision-making, sustainable investments and long-term industry resilience.

At the recent 17th Malaysian Property Summit (17MPS), industry leaders and experts highlighted the need for accurate, real-time data to decode market trends, predict buyer demand and guide development decisions. Association of Valuers, Property Managers, Estate Agents, and Property Consultants in the Private Sector Malaysia (PEPS) president Subramaniam Arumugam emphasised that shifting consumer expectations, legislative changes and infrastructure developments require industry players to adapt swiftly. Without reliable data, developers and investors risk misallocating resources, leading to market inefficiencies and unsold properties.

Despite the continued growth momentum in Malaysia’s property market transactions from 2023, Rahim & Co International research director Sulaiman Saheh pointed out that buyer sentiments remain divided. While some investors are optimistic, others remain cautious, making it essential for industry stakeholders to interpret market signals accurately. Comprehensive data on buyer demographics, purchasing power and location preferences allows developers to align property supply with demand, ensuring sustainable growth.

Board of Valuers, Appraisers, Estate Agents and Property Managers (BOVAEP) director and Valuation and Property Services Department (JPPH) director-general Abdul Razak Yusak reinforced the need to embrace change and interpret market dynamics correctly. While Malaysia’s property market remains strong, stakeholders must stay vigilant against global economic uncertainties, technological disruptions and evolving buyer behaviour. Without robust data analytics, the sector risks misreading market trends, leading to mispricing, oversupply, or development in less-than-ideal locations.

A data-driven approach

As Malaysia’s real estate sector advances, the importance of public-private partnerships in strengthening data collection, market analysis and investment strategies cannot be overstated. Accurate, transparent and technology-driven property insights will be the key to:

• Enhancing market vibrancy
• Attracting international investors
• Preventing property overhang
• Ensuring sustainable development

Real estate does not operate in isolation—it thrives on informed decision-making. As Malaysia moves forward, leveraging data-driven insights will be the foundation of a resilient and competitive property market.

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