REHDA welcomes continued provisions made in Budget 2026 for first-time homebuyers

• REHDA however expressed “trepidation pertaining the announcement to increase the stamp duty for foreign residential ownership, from the current 4% to 8%. This seems to be contradictory to the government’s aspirations to bring in more foreign investments and may be seen as a deterrent for these investors to set up base in Malaysia”.

KUALA LUMPUR (Oct 10): The Real Estate and Housing Developers’ Association (REHDA) Malaysia has lauded the continued provisions made in Budget 2026 for first-time homebuyers, such as the stamp duty exemption for memorandum of transfers and loan agreements for homes priced up to RM500,000 that has benefited many buyers, for two more years until December 2027.

“The expansion of the Housing Credit Guarantee Scheme (SJKP) to RM20 billion, expected to benefit 80,000 future homeowners, will also continue to spur the housing market. We also take note of the extension of the Youth Housing Financing Scheme under the Public Sector Home Financing Board (LPPSA), as well as the increase of financing to up to RM1 million,” said Datuk Ho Hon Sang (pictured), president of REHDA in a statement.

“The latter will ease the purchase of second homes, especially for those who are upgrading to a better home to meet their new needs,” he said.

However, Ho expressed “trepidation pertaining the announcement to increase the stamp duty for foreign residential ownership, from the current 4% to 8%. This seems to be contradictory to the government’s aspirations to bring in more foreign investments and may be seen as a deterrent for these investors to set up base in Malaysia”.

Meanwhile, REHDA is awaiting clarification on the tax exemption for the modification and conversion of commercial building to residential, which will lift a significant financial pressure on the developers undertaking these tasks.

The association also hoped that the prime minister’s call for financial institutions to support the implementation of rent-to-own will result in positive outcomes that allows more people to buy houses, especially the middle-income group who are not eligible for affordable housing, and yet are not financially able to purchase homes with higher price tags.

“On behalf of the industry, we hope the allocation amounting to RM 470 billion under this 4th Madani Budget will have a positive impact on the nation’s economy including the housing and property sector,” said Ho.

As Penang girds itself towards the last lap of its Penang2030 vision, check out how the residential segment is keeping pace in EdgeProp’s special report: PENANG Investing Towards 2030.