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What is Affordable House & Public Market Unit | Important Criteria

affordable house
evil face

Apologize in advance that I’m gonna use some language which I might seemed like an asshole but the purpose is to keep your attention here and the article to be somehow interesting or at least, not boring.

How to read this article?

Basically I’ve gathered info & amended accordingly so that to save your time and straight to the point to give you the answer that you’re looking for. Those BOLD / HIGHLIGHTED & bracket are my personal comment and if you’d like to save your time I’ve remarked the part that you can skip it and the rest are copy paste and amended by me from other articles just for your extra info.

(Now I think affordable house is pretty straight forward so I’ll skip the explanation. You might hear property agents or developer mention “open unit”, “open market” or “public unit”. Now you can refer to next part to know what it is actually.)

Open Market Units 

In order to stimulate the development of affordable housing, it has also been decided that 30% of the units in any particular 100% affordable housing project may be sold to the open market, with the following condition:

  • The units are to be sold at 10% above the controlled price in South West, SPU, SPT and SPS districts. (this might change from time to time which is not that important for you to know)
  • The units are to be sold at 20% above the controlled price in North East district. (this might change from time to time which is not that important for you to know)
  • The purchaser has to be a registered voter in Penang (The last I heard some projects you don’t have to be voter in Penang, only for public/ open market units ya)
  • The purchaser can only purchase ONE such affordable housing unit
  • The said unit cannot be sold within 5 years from the date of vacant possession. (I’m not sure if it is VP or from the date of S&P signing, you can clarify with your lawyer which is the most accurate)

In short, public market unit is priced higher than affordable unit by at least 20%. Yes you hear the word, “at least 20%”. Certain affordable project in Penang like Grace Harmony & the Dew. The Dew’s affordable unit priced around RM 320,000 onward while the public market unit priced RM 420k onward. Well, you do the math, in this case for sure more than 20%

And then you will ask, why so expensive!? Well, because it is in Penang Island and it is having limited land which means to say “rare” / limited.

Any difference? Why so expensive?

Again, usually there’s not much different in terms of specification given by developer but because public market unit is priced higher, usually developer will give slightly better advantage like: corner unit, higher floor, extra carpark & etc.

So why people want to buy public market unit?

  1. Because run out of unit, no choice / option left
  2. They are having more than 1 or 2 properties which caused them failed to fulfil the criteria, usually investor or parents joint name to buy for children & other possible reason
  3. They are not from Penang/ relevant state therefore they cannot buy at a preferred price / own the affordable unit. For example, if I’m from KL but I come to Penang to buy affordable house, which is not allowed. If it is allowed there will be people barking. So which is why outsider has to buy public market unit.

(you can skip 3 paragraph from here) Property prices have increased over the past decades, but our incomes are not keeping up. Saving up for a down payment for a home can take years, while paying off a mortgage for a home that’s beyond your affordability can be a struggle.

One way to ease the burden can be through an affordable housing scheme. These schemes either offer low- and medium-cost housing solutions or financing to fulfil your home ownership dream or at least to own a house / home.

But which schemes are you eligible for? Here’s your guide to affordable housing schemes in Malaysia.

Are You Eligible For An Affordable Housing Scheme / Program ?

What is the criteria to be fulfilled in order to be eligible for affordable housing scheme / program.

I’ve summarized all the important criteria, I’ve lumped in all together but basically they are more or less the same just slightly different across different state requirements

In short, all these affordable house in Malaysia are having similar qualification / criteria to be fulfilled which are:

  1. You have to be a Malaysian of course
  2. A registered voter in the state (if you want to buy an affordable house in Penang then you have to be Penang’s registered voter)
  3. Age 18 or Age 21 & above (some states are different but it is the same to be honest because you still have to go to bank loan application while it is almost impossible for bank to approve the loan for an 18 year old adult. Which means to say you still have to get a joint borrower with you which is still 2 names involved and another 1 will be older than you, could be your parent or spouse or Aunty or Uncle Wong)
  4. Income cap from RM 2,500 – 15,000 depends on the house price you’re purchasing
  5. Only 1st or 2nd house (depends on state approval as well)
  6. No record of impaired financing for the past 12 months
  7. Of course, you gotta have income / salary otherwise how you gonna pay your housing loan

*****Remember, the eligibility and requirements still controlled by the State Government, such as in Penang and Rumah Selangorku. Just check their respective website or make a few phone calls you will get the latest criteria.

What is the application process really like?

It is actually very simple, you don’t have to go through government department to apply for most of the affordable project. Instead, you can just go directly to developer’s office or any appointed sales agent. Don’t wait for the government department to reply, Malaysia Boleh, you know sometimes it takes forever but yes I admit it’s getting better compared to long time ago.

Sometimes banker will duty / station at developer office / sales gallery as well so don’t worry about the bank or loan application issue.

Documents to ready:

  1. A copy of the identity card (IC) of the applicant and spouse;
  2. Copies of identity cards or birth certificates of children/dependents;
  3. Copy of the Marriage Certificate/Marriage Register/Letter of Divorce/Death Certificate of spouse;
  4. Single Confirmation letter from employer or Commissioner of Oath for self-employed applicants who are not married (sometimes you’re not asked to provide this);
  5. The latest pay slips or income verification from the Commissioner of Oaths if self-employed (6 months payslip is better in order for you to prepare for bank loan application);
  6. Statutory declaration from the Commissioner of Oaths, if the spouse is unemployed;
  7. EPF statement (if any);
  8. A copy of water bill or electricity bill (sometimes it is not required);
  9. Possesses no more than 1 property (either applicant or the spouse), if any; and
  10. CCRIS report (for them to check your credit / financing status, if you’re credit impaired, means you didn’t pay your loan on time, then, bye, see you next year)

I think you can skip the information I gathered below. The above should be sufficient for your knowledge

If you like my style / Article, you can read other articles here:

`skip it

List of affordable housing schemes in Malaysia 

(honestly speaking not important for you no matter how many schemes, so many agents including lawyer, just tell them your budget & preferred location and they should be able to refer you.)

Here’s a summary of the schemes available (the list might not be updated / latest ya, so please refer wisely to government department / relevant authority and again I think you can skip this) :

SchemeAssistance typeEligible propertiesIncome eligibility
Perumahan Rakyat 1 MalaysiaAffordable housing, financing up to 110%RM100,000 to RM400,000RM2,500 to RM15,000
My First Home SchemeFinancing up to 110%Maximum RM500,000

Single applicants: RM5,000

Joint applicants: RM5,001 to RM10,000 (max RM5,000 per applicant)

BSN MyHome (Program Perumahan Rakyat)Financing up to 100%Loan amount from RM25,000 up to RM300,000Minimum RM1,000
My Selangor HomeAffordable housingRM42,000 to RM250,000RM3,000 to RM10,000
Residensi WilayahAffordable housingRM52,000 to RM300,000

Single applicants: RM10,000

Joint applicants: RM15,000

Perumahan Penjawat Awam MalaysiaAffordable housing for civil servantsRM90,000 to RM300,000Not stated

(Oh, do you think the financing up to 110% is extra 10% cash for you to do renovation or buy furniture ? Wait long long

The extra 10% is just for your mortgage insurance (housing loan insurance) mrta or mlta. Just in case anything bad happen, you know, the insurance company will pay off your housing loan so that you or your family are debt free.)

YOU CAN IGNORE / SKIP These scheme, just get an agent or lawyer that you know and they will recommend you the right property) Perumahan Rakyat 1 Malaysia (PR1MA)

PR1MA aims to provide “affordable and high-quality homes inspired by modern living concepts for middle-income Malaysians”. Its homes come in a variety of unit sizes and types, including apartments and terraces. They are priced between RM100,000 and RM400,000.

(Well, these are official “definition” by the relevant authority, don’t dream about variety of unit size & types also not to mention to get terraces in Penang state between rm 100,000 to rm 400,000)

Eligible buyers can get financing of up to 110% of the Sales and Purchase (SPA) price with participating banks.

Again, the financing up to 110% is NOT extra 10% cash for you to do renovation or buy furniture

The extra 10% is just for your mortgage insurance (housing loan insurance) mrta or mlta. Just in case anything bad happen, you know, the insurance company will pay off your housing loan so that you or your family are debt free.

To apply, you can register an account at the PR1MA website or go to developer office or any sales agent and they will handle for you.

Eligible applicants:

  • Malaysian citizen
  • Single or married, age 21 and above
  • Individual or combined gross monthly household income (husband and wife) of between RM2,500 and RM15,000
  • A PR1MA home can only be purchased as your first or second home

My First Home Scheme

The My First Home Scheme (or Skim Rumah Pertamaku) allows first time house buyers to obtain up to 110% financing from the participating banks. The scheme covers residential properties that are completed and under development, in the primary or secondary market. However, eligible locations and types of properties are subject to participating banks’ underwriting policies.

To apply, you can visit the branch of any participating bank.

Eligible applicants:

  • Malaysian citizen
  • First time house buyer
  • Salaried worker or self-employed individual
  • Single or joint applicants
  • Gross monthly household income:
    • Up to RM5,000 for single or joint applicants
    • Between RM5,001 and RM10,000 for joint applicants (subject to a maximum gross monthly household income of RM5,000 per applicant)
  • No record of impaired financing for the past 12 months

Eligible properties:

  • Located in Malaysia
  • Maximum property value of RM500,000
  • Buyers are required to reside in the property

BSN MyHome (Program Perumahan Rakyat)

BSN MyHome offers financing of up to 100% to those who are self-employed or have irregular income. The scheme is only applicable for low-cost and medium-cost properties.

To apply, you can visit any BSN branch.

Eligible applicants:

  • Malaysian citizen
  • Age 18 to 60 years; 65 or younger by the time the tenure ends
  • Minimum income of RM1,000 a month
  • No housing loans with any financial institutions
  • BSN Giro/i account holder
  • Security Deposit equivalent to three months of monthly instalments

Eligible properties:

  • Home purchase for self-occupation
  • Loan amount from RM25,000 to RM300,000

My Selangor Home

My Selangor Home, or Rumah Selangorku, provides affordable housing to those living in the state. It offers residential properties valued between RM42,000 and RM250,000.

To apply, you can register on the My Selangor Home website.

Eligible applicants:

  • Malaysian citizen
  • Age 18 and above
  • Does not already own a house in Selangor
  • For Type A houses: maximum of RM3,000 monthly household income
  • For Type B, C and D houses: between RM3,001 and RM10,000 monthly household income

Residensi Wilayah

Residensi Wilayah (formerly RUMAHWIP) provides affordable housing for those living or working in the Federal Territories of Malaysia (Kuala Lumpur, Labuan and Putrajaya). Its properties are valued between RM52,000 and RM300,000.

To apply, you can register an account on the Residensi Wilayah website.

Eligible applicants:

  • Malaysian citizen
  • 21 years old and above
  • Born, living or working in a Federal Territory
  • Single borrowers: maximum gross monthly income of RM10,000
  • Joint borrowers: maximum gross monthly income of RM15,000

Perumahan Penjawat Awam Malaysia

Perumahan Penjawat Awam Malaysia (PPAM) is a housing scheme specifically for civil servants in Malaysia. It provides affordable houses between RM90,000 to RM300,000 to those who are eligible.

Eligible applicants:

  • Malaysian citizen
  • Civil servant (contract or permanent)
  • Civil servant who has retired and has a retirement card
A message to you:
1. This article is written 17th June 2022, so if there’s anything out of date please feel free to drop me a text and I will update it. Apologize because I am short of hand. I’m writing to for my dear prospects and existing clients in order to provide more valuable insights and info to them and the public as well. Please feel free to drop me a text if you need help to locate or sell property in Penang.


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