PETALING JAYA: The government should consider extending stamp duty exemption for first-time homebuyers to properties priced up to RM1mil, says the Real Estate and Housing Developers’ Association (Rehda) Malaysia.
“We hope the government will continue reviewing the eligibility threshold in line with prevailing house prices and market conditions, including considering an extension of the incentives to properties priced up to RM1mil,” said Rehda president Datuk Zaini Yusoff.
Under Budget 2027, first-time buyers will receive full stamp duty exemptions on their loan agreements and property transfer instruments for homes priced up to RM500,000.
For homes priced from RM500,001 to RM750,000, buyers will receive full exemption on the first RM500,000 and a 50% exemption on the remaining value.
The incentives apply to sale and purchase agreements concluded from Jan 1, 2027 to Dec 31, 2030.
Zaini said the measures would ease the upfront costs faced by aspiring homeowners.
Rehda also welcomed full stamp duty exemptions for loan agreements and property transfer instruments related to rescued abandoned housing projects.
The exemption, which will run from Jan 1, 2027 to Dec 31, 2030, covers rescue contractors or developers as well as original buyers.
Zaini said the measure would facilitate the revival of stalled housing projects and provide relief to affected purchasers.
He also welcomed the RM20bil in housing financing guarantees under Syarikat Jaminan Kredit Perumahan (SJKP), which is expected to assist about 80,000 first-time homebuyers, especially those with irregular incomes.
“Improving access to end financing remains crucial in addressing the challenges faced by prospective purchasers,” he said.
However, Zaini said rising costs for construction materials, labour and regulatory compliance continued to affect housing affordability.
He urged a review of infrastructure, utility, statutory, regulatory and compliance charges imposed by the federal and state governments.
Rehda also called for the revival of the Home Ownership Campaign to help clear completed unsold residential units and widen homeownership opportunities.
Meanwhile, Federation of Malaysian Consumers Associations (Fomca) chief executive officer Dr Saravanan Thambirajah said easier access to housing loans must not be mistaken for affordability.
He said financial institutions should assess borrowers’ actual repayment capacity before approving loans under the SJKP guarantee scheme.
“The government must ensure that financial institutions assess borrowers’ actual repayment capacity rather than simply making it easier to obtain loans,” he said.
“We do not want first-time homebuyers to become trapped in long-term financial commitments that they cannot sustain.”
Saravanan said the scheme should be supported by financial counselling, transparent loan terms and clear explanations of interest rates, repayment obligations and other associated costs.
He also urged the government to monitor property prices to ensure developers do not raise prices and absorb the savings intended for buyers through the stamp duty exemptions.
While the incentives could reduce upfront purchasing costs, buyers still had to account for deposits, legal fees, mortgage repayments, maintenance charges, insurance and renovation expenses, he said.
“For many Malaysians, the biggest challenge is not merely paying stamp duty but finding a suitable home at a price they can genuinely afford.”
Master Builders Association Malaysia president Kenneth Liew Kiam Woon said the incentives given to homebuyers should support demand and improve affordability.
He said the incentives for “white knight” developers and contractors involved in abandoned housing projects were practical steps towards the government’s target of zero abandoned housing projects by 2030.
