The government has allocated a big fund in building more affordable homes for the mentioned target groups. Among the initiatives announced were 14,000 low-cost home units (RM 500 million) that will be developed under the People’s Housing Programme of the Ministry of Housing and Local Government. Besides, it includes 3,000 units (RM 315 million) of Rumah Mesra Rakyat, which will be developed by Syarikat Perumahan Negara Berhad (SPNB). The other commitments are an allocation of RM 125 million, mainly to maintain low-cost and medium-low stratified housing, and to repair existing dilapidated houses with another RM 310 million for the Malaysia Civil Servants Housing Programme (PPAM).

Many property players have lauded this measure that will strike a balance between private and public sectors in fulfilling the needs for affordable housing which is likely to address the affordability issue that concerned the low to mid-income groups and first-time homebuyers. However, this measure would not help to address the prevailing issue of high volume of residential overhang, which is largely attributed to the high-rise dwelling units priced between RM500,000 and RM700,000 per unit.

Stamp duty for first-time homebuyers is exempt for up to RM 500,000. This is applicable for the Sales and Purchase Agreement (SPA) executed between 1 January 2021 and 31 December 2025, and has been extended to abandoned projects as well.

As we know, stamp duties are triggered and chargeable to buyers for any acquisition of property. The removal of stamp duty will help to boost property transactions in the market.