To stabilise the residential property market, the latest measure by the Government to curb bulk buying is a step in the right direction to ensure a more equitable market that is led by real demand. Urban Wellbeing, Housing and Local Government Minister Datuk Abdul Rahman Dahlan said developers selling more than four residential units to a single buyer or group must now obtain prior approval from the Controller of Housing. The new enforcement would be made compulsory in all real-estate advertising and sale permit materials.

In order to prevent asset bubbles in Malaysia, a continuous monitoring by the Central Bank of Malaysia (CBM) on the property price trends and the introduction of appropriate measurements, such as the introduction of “My First Home Scheme” on 8 March 2011 will curb the real estate speculation activities and to support, stabilize and sustain the future of Malaysia’s Residential property market (Azhar, 2011). The Malaysia My First Home Scheme (MFHS) or Skim Rumah Pertamaku was introduced in early 2011 by the government with the sole purpose of assisting young adults, who have joined the workforce and earn RM3, 000 per month or less, to own their first home. This scheme allows young adults to obtain 100% financing from financial institutions (100% margin as opposed to the usual 90% offered by most banks), enabling them to own their first house without the need to pay a 10% down payment. Cagamas SRP Berhad will also guarantee the banks on financing above a 90% level, i.e. if a borrower obtains 100% financing, Cagamas SRP will guarantee 10% (thus raising 90% to 100%) of the financing (Eugene, 2013).

According to Foo (2014), in July 2013, the central bank reduced the maximum tenure for financing granted for the purchase of properties to 35 years from 45 years to ensure that assessments of households’ debt repayment capacity were not being undermined by extended financing tenures.