The National House Buyers Association (HBA) has come up with a number of measures following a request from the nation's finance ministry after concerns over soaring values, the Star reports.
Chang Kim Leong, secretary general of the HBA, said urgent action was needed to ensure Malaysians did not face a "homeless generation".
One proposal included encouraging the government to unlock land banks in locations across the country and using them to provide affordable housing developments.
The organisation also suggested restrictions on 100 per cent financing deals for homes, with only low to medium-cost dwellings being considered for such mortgages.
Deputy finance minister Datuk Donald Lim said the proposals had been received and would be assessed in due course.
This news comes after Kumar Tharmalingam, chief executive officer at Malaysia Property Incorporated, claimed more than two-thirds of people in the country can afford their own house.