Real estate dynamics are influenced by a variety of factors, including urbanisation rates, construction activity, and demographic shifts that momentarily affect supply and demand, in addition to a country's prosperity.

In 2021, housing debt accounted for 58 per cent, or over RM797 billion, of the country's household debt.

According to Datuk Jimmy Doh, managing director of Lagenda Properties Berhad, the recent increases in overnight policy rates, intended to curb inflation brought on by increasing borrowing and expenditure, are inexorably affecting bank base rates and, in turn, home loans.

Doh said that because every 25 basis point increase in the OPR will result in an increase in monthly mortgage payments of 3.2 per cent to 3.5 per cent, home purchasers are often more sensitive to rate increases in an inflationary climate.

As a result, he said, many members of the upper B40 and M40 categories who do not qualify for or were not chosen for government housing programmes like People's Housing Project apartments and PR1MA homes are being compelled to enter an exorbitantly pricey private market.

According to Doh, it is impossible to ignore the detrimental effects on society that this lack of affordable housing has.

"For example, unfulfilled housing needs and poor liveability from a lack of basic communal facilities cause negative health outcomes and an increased financial burden on the healthcare system.

"Poor housing conditions can also result in significantly reduced educational opportunities while recreational and leisure activities are suppressed, and the consequent impact on educational institutions will affect their access to the underserved community.

"In addition, affordable housing contributes to nation-building by creating new residential hubs and satellite cities, opening up improved economic opportunities to the local community," he said.

Doh said the impacts of a community's lack of access to high-quality, reasonably priced housing are long-lasting and detrimental to the development of the country.

The recession brought on by the pandemic has reportedly "downgraded" certain M40 households, which only serves to make problems worse, according to the Household Income Estimates and Incidence of Poverty Report.

According to Doh, 20 per cent of M40 residents have moved down to the B40, lowering their degree of home affordability.

As a result, he claimed, the demand for home products aimed primarily at these M40 households is likely to suffer as well.

According to the National Property Information Centre, the average price of a home has increased by 99.3 percent since 2010, virtually doubling, leaving 51 per cent of Malaysians unable to purchase one.

"Yet, on the upside, construction holds much potential to stimulate pandemic recovery and contribute to nation-building due to its potential to create jobs and communities; and in turn, recovery measures will support the sector's transformation," he said.

Compared to the public sector, the private construction industry rose by 3.2 per cent in the first quarter of 2022, accounting for 60.7 per cent (RM17.9 billion) of all construction work done.

According to Doh, there has been a notable trend over the past ten years in the business sector's support for addressing housing concerns.

"However, when Malaysia's gross domestic product (GDP) shrank by 5.6 per cent in 2020 during the Covid-19 pandemic, house prices increased by 0.3 per cent leaving a high volume of overhang units, adding further hurdles to home ownership," he said.

Doh said the real estate industry is also seeing a slow increase in the supply of affordable housing.

Only 14,094 of the 117,766 new housing units constructed in 2020 were low-cost, or priced below RM400,000, falling short of the National Affordable Housing Council's goal of constructing 100,000 low-cost housing units per year.