KUALA LUMPUR: Enhancing the Housing Credit Guarantee Scheme (SJKP) and introducing improved financing structures are among the proposals made by the Real Estate and Housing Developers’ Association (REHDA) Malaysia for Budget 2027.
The association is also seeking an extension of existing stamp duty relief and a special Home Ownership Campaign (HOC) for unsold completed residential units.
REHDA president Datuk Zaini Yusoff said the proposals, which have been submitted to the Ministry of Housing and Local Government and the Ministry of Finance, are aimed at addressing constraints faced by homebuyers as well as the rising cost of housing delivery.
He said among the key proposals is an enhancement of the SJKP to widen access to financing, particularly for young Malaysians, the self-employed and those without fixed or conventional incomes.
"Access to housing financing remains a major barrier to house ownership, particularly for young Malaysians, the self-employed and purchasers with low or non-traditional incomes," said Zaini at a media briefing on REHDA's Property Industry Survey for the first half of 2026 (1H 2026) here today.
REHDA also proposed government-backed housing financing or guarantee mechanisms, as well as stepped-up financing structures that would allow lower repayments during the initial years of house ownership.
He said the measures would help prospective buyers who have the capacity to service monthly housing repayments but struggle with the upfront costs of purchasing a home.
Most prospective buyers, especially those in the Bottom 40 (B40) group, have the capacity to service their monthly housing repayments, but they face difficulty accumulating sufficient savings for stamp duty and other initial acquisition costs, said Zaini.
"Normally, coming up with that 10 per cent is difficult for them. So, we are asking the government to help on this," he said.
On stamp duty, Zaini said REHDA proposed extending the existing relief to residential properties priced above RM500,000 and up to RM1 million, with an appropriate tiered relief mechanism for purchases made between January and December 2027.
He said REHDA has also proposed measures to address unsold completed residential units, including a special HOC for such properties that have obtained the Certificate of Completion and Compliance (CCC).
"There are a lot of overhang units, so we want to address these units first," said Zaini.
REHDA's survey indicates that 59 per cent of 181 respondents had unsold completed residential units as of June 30. The reasons cited include rejection of end-financing applications, high property prices, and unreleased Bumiputera units.
He said a targeted HOC could improve market liquidity and allow capital tied up in unsold properties to be recycled into new developments.
REHDA is advocating for data-driven housing planning to better align future housing supply with actual demand, preventing supply-demand mismatches.
Zaini emphasised that reducing the cost of housing delivery is another priority, given rising infrastructure, utility, statutory, regulatory and compliance costs borne by developers.
"Housing affordability is influenced not only by purchasers' access to financing but also by the cost of developing and delivering homes.
"We are asking the government to look at these costs again. Once these are reduced, developers can also reduce prices significantly," he said.
REHDA is also seeking fiscal incentives to accelerate construction productivity, technology adoption and digitalisation, including incentives for investments in Building Information Modelling (BIM), Industrialised Building System, artificial intelligence, automation, software and equipment.
Proposals include accelerated capital allowances and investment tax allowances for qualifying expenditures in these areas.
The association also called for measures to accelerate green and sustainable housing development as part of its Budget 2027 proposals. - Bernama
