Is It Harder To Buy A Property Today Than Before?

Is It Harder To Buy A Property Today Than Before?

I wrote the original article in 2023. The question then was simple:

Is it harder to buy a property today or was it harder for our parents’ generation?

My answer at that time was slightly different from what many people expected. I said it may actually be harder THEN versus today. Why do I say so?

It is harder to allocate money for property today.

And after looking at the latest numbers, I think that point is still relevant.

But there is another problem now.

Property prices have continued to rise, while our financial commitments have also multiplied.

So let’s look at this again.

#1 – Property prices really are higher

According to the latest National Property Information Centre (NAPIC) data, the average Malaysian house price reached RM502,922 in 2025, up 2.6% from the previous year. 

But the national average doesn’t tell the whole story.

Kuala Lumpur was around RM819,848.

Selangor was RM567,505.

Johor was about RM472,977.

Penang was RM497,857.

Meanwhile, states such as Perak, Melaka, Kelantan and Perlis remained much more affordable on average. 

So when someone tells me:

“Property is too expensive!”

My first question is:

“Where?”

Because Malaysia isn’t one property market.

A RM500,000 property may sound expensive to someone living in a smaller town.

But for someone looking for a landed property in a prime Klang Valley location, RM500,000 may actually be considered affordable.

Location still matters. A lot.

#2 – But interest rates today are not necessarily the problem

This is where our memory can sometimes fool us. I remember when some of my home loans were around 5.5%.

The original article mentioned that housing loan rates around 2007 could be around 5.75% or higher.

Today, depending on the borrower, bank and loan package, home loan rates can be considerably lower.

So yes, property prices have increased. But borrowing costs are not necessarily higher than what previous generations experienced.

This creates an interesting situation.

The house is more expensive, but the cost of borrowing may be lower.

Which one matters more?

Actually, both are contributing to the price.

Let’s take a simple example.

A RM300,000 property with a 90% loan means borrowing RM270,000.

At 5.5%, the monthly instalment over 30 years is roughly RM1,533.

At 4%, the monthly instalment is around RM1,289.

That’s about RM244 difference every month.

So lower interest rates can make today’s property purchase more manageable.

But only if the property price itself hasn’t gone too far beyond our income.

And this is where affordability becomes important.

#3 – The real problem may be our lifestyle

This is something I mentioned in the original article and I think it has become even more relevant.

Today we have: Online shopping. Food delivery.

Streaming subscriptions.

Frequent overseas holidays. (which we must post and let the world see…)

New smartphones. (else how to show we are more successful than the one using an OPPO phone?)

Better cars. (Brand first, even if smaller in size, even if our passengers feel dizzy in our car… )

Buy Now, Pay Later. (I have many articles on this too)

Credit cards. (Super dangerous…)

And so many “small” monthly commitments.

Individually, they don’t look very serious.

RM50 here. RM100 there. RM200 somewhere else.

But add everything together.

Suddenly, our salary has disappeared before we even reach the property discussion.

I don’t think our parents had this problem to the same extent. They had fewer choices.

And perhaps because they had fewer choices, they also had fewer temptations.

That matters.

Because buying a property requires something very important: surplus cash flow.

Not just income.

#4 – Our parents may have earned less, but they also wanted less

This is the part that I think we sometimes forget.

Imagine someone earning RM3,000 a month 20 or 30 years ago.

He may have bought a modest house.

Driven a modest car.

Taken a local holiday.

Saved whatever was left.

Today, someone earning RM8,000 may say:

“I earn much more than my parents did.”

Yes.

But the same person may also have:

RM1,500 car instalment. (Saga is merely RM500 per month, so imagine what could RM1,500 buy us?)

RM2,000 rent.

RM1,000 credit card and personal-loan commitments.

RM800 eating out and delivery.

RM500 subscriptions and shopping.

Suddenly there isn’t much left.

So the question isn’t:

“Do I earn more?”

The better question is:

“How much of my income can I allocate towards buying a property?”

That’s a very different question.

#5 – Property affordability is not just about the price

Let’s say I find a RM500,000 property.

I need approximately RM50,000 for a 10% down payment.

Then there are legal fees, stamp duty, renovation, furniture, moving costs and potentially other expenses.

So I don’t just need to be able to afford the monthly instalment.

I need to survive the purchase.

This is why I always tell people not to use every single ringgit they have just to get the keys.

Keep some cash aside.

Have an emergency fund.

Don’t assume that because the bank approves the loan, the property is automatically affordable.

The bank is assessing whether you qualify for the loan.

You should be assessing whether you can comfortably live with the loan.

Those are two different things.

#6 – There is still affordable property in Malaysia

This is another important point. The latest NAPIC data shows a huge variation in average prices.

In 2025, the average house price was approximately:

Location	Average house price
Kuala Lumpur	RM819,848
Selangor	RM567,505
Penang	RM497,857
Johor	RM472,977
Negeri Sembilan	RM329,453
Kedah	RM326,403
Perak	RM287,003
Melaka	RM251,231
Perlis	RM253,129

Source: NAPIC, Malaysian House Price Index 2025. 

Look at that table.

If someone says:

“There are no affordable properties in Malaysia.”

I would disagree. There are.

The bigger question is:

Are they in the location where we want to live? Is it in those neighborhoods everyone said it’s good or are they in not so well-known ones? And that is the real challenge.

#7 – Maybe we should change what we mean by “owning a property”

This is where I think younger Malaysians may need to think differently from previous generations.

Some people believe their first property must be:

A landed house. Near the city. (this one subjective a bit but try focus on duration of travel versus just the distance and you will get more choices)

Three bedrooms. (families getting smaller, no need so many rooms…)

New development. (secondary property, the paint also peeling off dee… etc)

Nice facilities. (I have only used the pool in my first apartment 5 times in the 5 years I stayed there…)

Close to everything.

Nothing wrong with that.

But if the budget doesn’t support it, perhaps we need to start smaller.

Maybe a smaller apartment. Maybe a subsale property. Maybe further from the city centre.

Maybe a property that needs some renovation.

Maybe rent first.

Maybe buy in a different town.

I have always believed that the first property doesn’t have to be the final property.

My own property journey has involved different properties in different locations.

Some were homes.

Some were investments.

Some worked better than others.

The important thing is to start with something that fits our financial capacity.

Then upgrade when we can.

#8 – And renting is not necessarily failure

This is another mindset I would like to change.

If you cannot comfortably afford to buy today, renting is not necessarily a bad decision.

In fact, sometimes renting is the financially responsible decision.

If buying a RM600,000 property means stretching yourself until you have no savings left, perhaps renting a RM2,000 home is smarter for now.

Use the difference to:

Build savings.

Invest.

Reduce debt.

Increase your income.

Prepare for the down payment.

Then buy when the numbers make sense.

I have seen people rent strategically and eventually become homeowners.

There is nothing wrong with that.

The problem is not renting.

The problem is renting forever without building any assets.

That’s different.

SO, is it harder to buy property today?

My answer remains:

Yes and no.

Yes, because property prices in many popular locations have increased significantly.

Yes, because the amount needed for a down payment is substantial.

Yes, because younger Malaysians have many more lifestyle expenses competing for their income.

But no, because mortgage rates are not necessarily higher than what previous generations faced.

No, because there are still affordable locations and different types of properties.

And no, because we have more information today than ever before.

We can compare prices.

Check transactions.

Compare loan packages.

Look at rental yields.

Research locations.

Read reviews.

Even inspect a neighbourhood virtually before going there.

So perhaps buying a property today isn’t simply harder.

It requires us to be more disciplined.

Because at the end of the day, buying a property is not just about whether the bank will lend us money.

It is about whether we can allocate enough of our income towards an asset without destroying the rest of our financial life.

It may not be harder to buy a property today.

But it is definitely harder to resist everything else that wants our money today.

And perhaps that is the real challenge.

Happy deciding.

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Sources

• NAPIC — Malaysian House Price Index 2025 — official national and state-level house-price data.
• NAPIC — Malaysia Property Market Report 2025 — latest annual property-market overview.
• NAPIC — Residential Prices Quarterly / Yearly Update — latest NAPIC residential-price publications.
• Original Kopiandproperty article — “Harder to buy a property today or a long time ago?” — original article published in May 2023.