ASEAN Must Lead Real Estate Sector Reform Amid Global Challenges – Nga

KUALA LUMPUR, July 23 (Bernama) -- ASEAN must take the lead in transforming its real estate sector amid rising geoeconomic volatility, irreversible structural shifts and rapid urbanisation, said Housing and Local Government Minister Nga Kor Ming.

Delivering his keynote address at the ASEAN Real Estate Conference (AREC) 2025 here today, Nga warned that the region is facing a “perfect storm” of challenges, including supply chain disruptions, currency fluctuations and surging demand for urban housing.

“We stand at a pivotal moment where real estate is no longer just about buildings, but about building futures — where every citizen, from Kuala Lumpur to rural Cambodia, finds not just shelter, but dignity and opportunity,” he said.

Citing data from the United Nations Economic and Social Commission for Asia and the Pacific (UN ESCAP), he said ASEAN’s urban population is projected to increase by 90 million by 2030, necessitating the construction of 10 to 12 million new housing units annually.

At the same time, he said global uncertainties have dampened property sales, with luxury condominium prices in Ho Chi Minh City falling by eight per cent due to oversupply, while industrial real estate surged by 22 per cent, driven by shifts in regional manufacturing.

Nga said the construction sector is also grappling with material price volatility, citing steel prices which saw fluctuations of up to 30 per cent, while the Malaysian ringgit fell to RM4.80 against the US dollar in April 2024, before recovering to RM4.20.

“These uncertainties complicate supply chain planning by altering the price of both imports and exports,” he noted.

Beyond short-term shocks, Nga outlined what he described as “three irreversible shifts” impacting the region’s real estate sector — the sustainability imperative, urbanisation paradox and geopolitical repricing of global capital.

“Green features were once premium options, they are now minimum requirements from both regulators and consumers,” he said, adding that sustainable building materials now add up to 15 per cent to overall construction costs.

To future-proof the sector, Nga proposed the development of a flexible ASEAN housing model built on three core principles — data-driven planning, strong public-private-people partnerships, and context-sensitive solutions tailored to each member state's local realities.

He said Malaysia’s Rent-to-Own (RTO) model exemplifies how homeownership can remain accessible despite rising costs, noting that the government aims to increase the national homeownership rate from 77 per cent to 80 per cent by 2030.

“Our RTO programmes blend rental flexibility with a clear path to equity,” he said, while acknowledging a generational shift among younger Malaysians who are increasingly opting to rent due to affordability concerns.

Nga also proposed the establishment of a Regional Housing Policy Lab to promote collaborative research and a shared ASEAN Urban Agenda Progress Dashboard to track affordable housing delivery and carbon reduction targets.

As Malaysia currently chairs the UN-Habitat Assembly, he said ASEAN must align its strategies with the New Urban Agenda to ensure inclusion, sustainability, and resilience in housing development across the region.

“Housing is not about brick and mortar. It is about dignity, about stability, about a shared future where no ASEAN citizen is left behind,” he said.

-- BERNAMA