The National Housing Policy will be revised to address the need to better match demand for and development of various types of residential properties, especially with regards to low-cost homes.

Housing and Local Government Minister Datuk Seri Ong Ka Ting said the existing policy is providing no longer suitable as home ownership patterns have changed over time.

"For example, in some areas low and medium-cost houses are not much in demand, while in others there is a shortage.

"We want to make sure there is balance in demand and development so that we won't have a problem with (property) overhang or shortage of low-cost houses," he told reporters in Kuala Lumpur after chairing a dialogue between the ministry and the private sector.

According to the National Property Information Centre (Napic), there were 51,348 units of unsold homes worth RM6.61 billion as at the end of last year.

The policy revision exercise will look into all matters related to the construction, distribution and location of housing schemes and will involve the participation of relevant authorities and industries players, but no time frame as yet been set.

The Real Estate and Housing Developers Association and the Malaysian chapter of the International Real Estate Federation which were represented at the dialogue, welcomed the decision, saying that the move was timely and would benefit the industry.

The existing housing policy only stipulates that only residential projects must comprise at least 30 percent low-cost houses.

The ministry has stated compiling information and inviting feedback from property developers and other industry players. It is sourcing the latest data on the property market from Napic and intends to talk with the Singapore Housing Development Board to see hoe things are done in the republic.

Ong said pending full revision of the housing policy, the ministry may issue directives to resolve urgent issues as and when they are deemed necessary.

This is because revising the National Housing Policy will involve amendments to a number of legislations, including the Town and Rural Planning Act, 1976, which according to Ong might take a while.

As for Housing Developers Act, 1966, Ong said proposed amendments will be presented to the Cabinet in June and tabled in Parliament in July.

"The Bill is at the Attorney-General's Office. We were told that it is almost finalized," he said.

Two other Bills – to amend the Buildings and Joint Property Act and the Rehabilitation of Heritage Act – have been approved for tabling in Parliament by the Attorney-General's Office, Ong added.

Other private sector bodies which participated in the one day dialogue with the ministry yesterday were the Federation of Malaysian Manufacturers, National Chamber of Commerce and Industry Malaysia, Malaysian Engineering Institute and House Buyers' Association