PETALING JAYA: CIMB Securities Research views Budget 2026 as “mildly negative” for the local property sector, citing the absence of new incentives and higher stamp duties on foreign purchases that could dampen sentiment.
In Budget 2026, the government proposed raising the stamp duty on property transfers involving non-citizens and foreign companies (excluding permanent residents) from 4% to as high as 8%, as a preventive measure to maintain a competitive property market and protect local interests.
CIMB Research said this, coupled with the lack of fresh incentives, may weigh on overall sentiment.
“Although foreign purchases accounted for only 0.6% (1,459 homes) of total residential property transactions in Malaysia in 2024, the proposed hike in stamp duty on property transfers involving foreigners (excluding permanent residents) and the absence of new incentives may dampen sentiment towards the sector,” it said.
However, the research house noted that this could be partly offset by continued measures to promote home ownership among first-time buyers.
To further support first-time buyers, the government has extended the full stamp duty exemption for first-home purchases (up to RM500,000) for another two years until Dec 31, 2027.
Among other key highlights, CIMB Securities Research said Budget 2026 emphasised Johor’s role as “Malaysia’s leading investment destination as of the first half of 2025.”
On this, it said the Forest City Special Financial Zone Family Office Incentive Scheme has approved RM400mil in assets under management (AUM), with an additional 30 funds expressing interest and on track to achieve a total of RM2bil in AUM by end-2026.
Meanwhile, CIMB Securities Research said the Johor–Singapore Special Economic Zone (JS-SEZ) has approved total investments worth RM37.1bil, accounting for 66% of Johor’s total investments, and secured an additional RM29bil in commitments.
The research firm added that Budget 2026 also recognised the investment initiatives of the Negri Sembilan and Selangor state governments, featuring “a new North–South Expressway (PLUS) interchange for the Malaysian Vision Valley (MVV) and the 600-acre Selangor Aero Park (SAP)”.
“Proposed infrastructure upgrades such as the new PLUS interchange for MVV and the 600-acre SAP should enhance the value proposition of nearby industrial property projects, including Eco World Development Group Bhd
’s Eco Business Park VII in Bukit Pelandok, Negri Sembilan, and Mah Sing Group Bhd’s MSS Business Park in Sepang,” it added.
Additionally, Budget 2026 has introduced a special 10% tax deduction, capped at RM10mil, for expenses related to the conversion of commercial buildings into residential properties to revitalise urban areas.
Meanwhile on the financial accessibility, CIMB Securities Research noted that measures such as raising the financing limit under the Young Home Financing Scheme by the Public Sector Home Financing Board to RM1mil from RM750,000, and doubling allocations under the Housing Credit Guarantee Scheme to RM20bil, would benefit young civil servants, gig workers and self-employed homebuyers.
“On a side note, financial institutions are encouraged to expand ‘rent-to-own’ and ‘build-then-sell’ housing schemes,” it noted.
On housing initiatives, the reserch house said Budget 2026 identified three residential pilot projects for vertical school developments – Kota Madani in Precinct 19, Putrajaya; Rumah Bakat Madani SkyWorld Pearlmont in Seberang Perai, Penang; and Residensi Aman Madani in Bandar Sri Permaisuri, Kuala Lumpur.
It said a total of RM672mil has also been allocated for the People’s Residency Programme and Rumah Mesra Rakyat, along with RM500mil to repair or rebuild 3,300 dilapidated homes.
