By Chan Wei Chao (REN 39846), Team Leader, Bricksmen Team · IQI Realty Sdn. Bhd. · Updated 9 November 2026
The government is studying a “shared ownership” model that would let buyers purchase part of a home and pay rent on the rest. Housing and Local Government Minister Nga Kor Ming’s ministry said at the launch of the National Housing Policy 2026–2035 that it would explore new financing options, including shared ownership, rent-to-own and fixed-rate mortgages. No scheme or terms have been announced yet, as The Star noted in an analysis on 8 November 2026.
How shared ownership works elsewhere
Malaysia has not set its own rules, so the UK model is the usual reference:
- The buyer purchases a share of the home, typically between 10% and 75%, often with a bank loan.
- The buyer pays rent to a housing provider on the share they do not own.
- The buyer can buy more shares later (“staircasing”), at the home’s value at that time.
- The buyer usually pays maintenance charges and handles repairs, however much they own.
A simple example
| Item | Figure |
|---|---|
| Home value | RM300,000 |
| Buyer’s first share (30%) | RM90,000 |
| Share rented from the provider (70%) | Rent paid on this portion |
| Buying another 10% later, if the home is then worth RM400,000 | About RM40,000 instead of RM30,000 |
Rent paid does not count towards buying the provider’s share. Extra shares are bought separately, and valuation, legal and admin fees may apply.
Questions a Malaysian scheme would need to answer
- Who owns the rest? A government agency, a developer or an investor, and what happens if they sell their stake.
- How rent is set and reviewed.
- How future shares are priced.
- How to sell if the buyer needs to move for work or family.
- Risk if prices fall. The value of the buyer’s own share would drop too.
- Affordability over time. Households with irregular income may struggle to buy more shares.
What it means for Penang buyers
For now, nothing changes: there is no shared ownership scheme to apply for. If one is introduced, it could lower the upfront cost for first-time buyers, especially for affordable homes. In the meantime, Penang already has affordable and lower-priced projects on the island and the mainland:
| Project | Area | Indicative price | Completion |
|---|---|---|---|
| Taman Harmoni Vista | Teluk Kumbar | RM300,000–RM400,000 | 2027 |
| Iconic Harmony | Bukit Mertajam | From RM330,000 | 2028 |
| Harbour View Residence | Butterworth | RM417,000–RM549,000 | Q1 2029 |
| Sevora | Bukit Mertajam | RM430,000–RM472,800 | 2030 |
| D’Hazelton | Farlim | RM450,000–RM500,000 | 2029 |
Use our mortgage calculator to see what a normal home loan would cost you today.
Frequently asked questions
Is there a shared ownership scheme in Malaysia now?
No. The government has only said it will explore the idea under the National Housing Policy 2026–2035.
How does shared ownership work?
You buy part of a home, pay rent on the rest, and can buy more shares later at the market value at that time.
Is it cheaper than a normal purchase?
The upfront cost is lower, but you pay rent on top of your loan, and later shares cost more if prices rise.
Buying your first home in Penang?
I can help you compare affordable projects and work out what you can borrow. WhatsApp or call +60 10-313 9113.
Sources
This article is general information as of 9 November 2026. No shared ownership scheme has been announced in Malaysia; any future scheme may work differently from the example above. It is not financial advice; project prices are indicative and depend on availability.