Malaysia’s housing sector faces two persistent challenges: affordability and sustainability. Despite government initiatives, there is still a mismatch between the housing supplied by developers and the real needs and affordability levels of homebuyers, particularly within the middle-income segment. This mismatch contributes to market inefficiencies, oversupply, and the slow adoption of sustainable housing solutions.

This project introduces the Market-Matching Framework, an innovative model designed to “close the green gap” by integrating both demand and supply perspectives in the delivery of viable and sustainable affordable housing. On the demand side, the framework considers household income, affordability thresholds, preferences, and financing capability. On the supply side, it incorporates developers’ cost structures, design strategies, and sustainability targets. By merging these perspectives, the framework aligns what homebuyers can afford with what developers can sustainably deliver.

A key feature of the framework is the integration of six green design criteria to ensure that affordability does not compromise environmental and social well-being. These criteria include energy efficiency to reduce consumption and encourage renewable solutions, sustainable site and management practices to optimize land use and long-term planning, and water efficiency through conservation measures such as rainwater harvesting. They also encompass the use of sustainable materials and resources that are durable and locally sourced, ensuring indoor environmental quality that supports occupant health and comfort, while fostering innovation by adopting creative technologies and design solutions.

The novelty of this invention lies in its market-responsive and sustainability-driven approach. Unlike conventional models that address affordability and sustainability separately, this framework combines them into a unified solution. It functions as a decision-support tool that reduces developers’ risk of unsold units, improves access to green affordable homes for buyers, and supports policymakers in achieving national housing and climate objectives.

Ultimately, the Market-Matching Framework contributes to resilient urban development by bridging aspiration and reality—delivering green affordable housing that people want, at prices they can afford, and in forms developers can sustainably build.

Invention Technical Description

This invention introduces a market-driven framework for Green Affordable Housing (GAH), designed through the integration of demand and supply perspectives to ensure sustainable yet viable housing solutions. Data was collected from two key stakeholders: potential middle-income homebuyers and Green Building Index (GBI)-certified developers across three major urban regions in Malaysia—Klang Valley, Penang, and Johor Bahru.

The data from potential homebuyers was analyzed using logistic regression analysis to examine willingness-to-pay for GAH, while the developers’ responses were assessed using descriptive analysis to evaluate their readiness to adopt green criteria and features. Subsequently, both perspectives were integrated through cross-tabulation analysis, enabling the alignment of demand-side preferences with supply-side capabilities for framework development.

Findings revealed that 75.8% of homebuyers expressed willingness to pay more for GAH, and both homebuyers and developers agreed on adopting up to 10% incremental cost for integrating sustainable features. Six GAH criteria aligned with the GBI and 10 essential features were identified as suitable for affordable housing development. To refine priorities, the Analytical Hierarchy Process (AHP) was employed, producing a ranked list of the five most important features: water-saving appliances and fittings, designs that minimize pollutants, use of reduce-reuse-recycle materials, energy-saving appliances and lighting, and extensive landscaping. These features received weighting scores between 10.6 and 16.9, confirming their critical role in GAH development.

Additionally, 29 eco-labelling components from the Product Criteria Document (PCD) established by SIRIM were incorporated into the framework to ensure compliance with governmental standards. The framework underwent further validation through stakeholder and market feedback, demonstrating broad agreement on its applicability and practicality.

Technically, this invention provides a systematic and validated decision-making tool that enables developers to design and implement green affordable housing based on proven market demand and sustainable priorities. By integrating both demand and supply perspectives, the framework not only supports the establishment of the GAH concept in Malaysia but also offers a replicable model for other regions aiming to balance affordability with sustainability.

Demostration/ Presentation Video

Poster/ Broucher/ Invention Photo