KUALA LUMPUR: Homes are increasingly being viewed as investment instruments by certain segments of society rather than as sanctuaries, posing a new challenge to homeownership affordability, especially amid rising living costs and financing rates.

IPP Wealth Managers Ltd investment strategy director and chief economist, Mohd Sedek Jantan, said this shift in mindset means that housing affordability can no longer be evaluated based on price alone, as it is also influenced by financial factors, the cost of living, and interest rates.

He noted that houses, which originally functioned as places of shelter, are now increasingly regarded as investment assets, thereby impacting affordability levels, particularly when financing costs rise.

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"In the past, a house was seen as a shelter, but now buying a home is widely linked to investment and asset accumulation. This can become an issue because it is always tied to finances. Affordable housing may be affordable now, but when interest rates rise in the future, it becomes a problem for certain groups.

"Therefore, the definition of affordability needs to be redefined. It is not just the government's responsibility; all stakeholders and market players must work together to provide affordable housing," he said during the forum session 'Affordable Housing & Residential Market: Demand and Supply' at the Malaysia Construction & Property Summit 2026 (MBPS 2026) recently.

Mohd Sedek added that homeownership affordability must also be viewed from the perspective of hidden costs borne by households, such as childcare, home maintenance, and daily commuting expenses to work.

According to him, many young families are now forced to buy or rent homes far from city centres because they cannot afford to own a residence near their workplaces, consequently increasing daily commuting costs and time.

The forum also featured Khazanah Research Institute (KRI) research director Dr Suraya Ismail; CBRE | WTW group managing director Tan Ka Leong; Rahim & Co International Sdn Bhd Research and Consultancy director Sulaiman Akhmady Mohd Saheh; and Olive Tree Property Consultants chief executive officer Samuel Tan.

Tan said the tendency to view homes as investment assets also influences property development patterns, as developers are more inclined to build high-density projects and serviced apartments to maximise land value.

"However, actual market demand is more focused on affordable homes priced below RM300,000 that are located near employment centres and have good transportation access.

"The mismatch between the products being developed and the actual needs of buyers is one of the main causes behind the glut of unsold units in the market," he said.

This is also supported by data presented by Rahim & Co, which showed that the number of completed unsold residential units, or 'overhang', rose to 54,795 units in the first quarter of 2026, valued at RM34.12 billion, compared to 43,533 units worth RM30.72 billion during the same period the previous year.

Sulaiman said that this situation demonstrates that market problems do not stem solely from high house prices but also involve mismatches in product type, location, and buyer preferences.

"Many buyers still want landed properties even when offered apartment units at a lower price," he said.

He also explained that a large portion of completed unsold residences actually consists of units priced below RM300,000, thereby challenging the assumption that the property overhang only affects luxury properties.

Meanwhile, Tan noted that a total of 21,384 residential units priced below RM400,000 were recorded in the unsold category as of the first quarter of 2026, indicating that homes deemed affordable are also facing weak demand.

He said this trend reflects a widening gap between the offered house prices and the actual capability of households to own a home.

"The issue of homeownership affordability is becoming increasingly localised and can no longer be viewed as a uniform challenge across the country. The supply of affordable housing must be aligned with the actual purchasing power of residents in each specific area," he said.