Rehda backs Budget 2027 housing measures but calls for more action on rising costs

KUALA LUMPUR, Oct 9 — The Real Estate and Housing Developers’ Association (Rehda) has welcomed measures in Budget 2027 to support homeownership, while urging the government to do more to address rising development costs and housing affordability.

Its president, Datuk Zaini Yusoff, said in a statement that the expanded stamp duty exemptions for first-time homebuyers would help reduce the upfront cost of buying a home.

Under the measures announced, buyers of properties priced up to RM500,000 would receive full stamp duty exemptions on instruments of transfer and loan agreements.

For properties priced up to RM750,000, the exemption would cover the first RM500,000, with a 50 per cent exemption on the remaining amount.

“These measures will help ease the upfront financial burden of aspiring homeowners,” he said.

Zaini said Rehda hoped the government would continue reviewing the eligibility thresholds in line with prevailing house prices and market conditions, including considering extending the incentives to properties priced up to RM1 million.

The association also welcomed stamp duty exemptions for rehabilitating abandoned housing projects, saying they could help revive projects and provide relief to affected purchasers.

It further welcomed RM20 billion in housing financing guarantees under Syarikat Jaminan Kredit Perumahan, which is expected to benefit about 80,000 first-time homebuyers, particularly those with irregular incomes.

“Improving access to end-financing remains crucial in addressing the challenges faced by prospective purchasers,” Zaini said.

Rehda said the government’s continued commitment to affordable housing was also encouraging, with nearly RM1 billion allocated for Rumah Mesra Rakyat and Programme Residensi Rakyat.

It cited affordable housing initiatives by Petronas and the Bandar Madani Bukit Jalil development as further efforts to expand opportunities for Malaysians, particularly lower-income groups.

The association also welcomed the extension until December 31, 2030, of investment tax allowances of up to 100 per cent for qualifying green technology projects and assets.

It said the incentives could encourage more sustainable practices, especially among smaller developers facing higher implementation costs.

However, Rehda remained concerned about rising development costs, including construction materials, labour and regulatory compliance, and called for further measures to ease the pressure.

“More needs to be done to ensure a more holistic change in housing affordability, such as the review of all related charges imposed by the federal and state governments, including infrastructure, utility, statutory, regulatory and compliance charges.

“These costs remain a challenge in developers’ efforts in addressing affordability, and we reaffirm our commitment to engage with the government and all relevant parties to meet this goal,” Zaidi said.

Rehda also urged the government to reconsider reviving the Home Ownership Campaign, particularly to help sell completed but unsold residential properties while giving more Malaysians the opportunity to own a home.

The Home Ownership Campaign (HOC) is a government-supported initiative designed to help more Malaysians buy homes. It has offered incentives such as stamp duty exemptions and developer discounts, while encouraging sales of eligible residential properties.