Juwai IQI: In Budget 2027 Surprise, First-Home Buyers Could Save More Than RM15,500
The announced measures in Budget 2027 promise to offer significant help to affordable and middle-market buyers in three key ways, according to analysis released this morning by Juwai IQI Co-Founder and Group CEO Kashif Ansari.1
“The new budget lifts the maximum home price that can qualify for first-home stamp duty relief. Buyers will now be able to qualify for the stamp duty exemptions with properties worth up to RM750,000, compared to RM500,000 previously.
“The second big announcement is the extension of the relief to 2030. We hoped for the programme to be extended, but 2030 is further out than we expected.
“The third big announcement is the provision of nearly RM1 billion for public housing, for initiatives like the Rumah Mesra Rakyat and Program Residensi Rakyat.”
More Stamp Duty Relief, for Longer
Mr Ansari said, “My advice for first-home buyers is to wait until January to sign your sale and purchase agreement, if your property will cost between RM500,000 and RM750,000. Prior to January you won’t get any stamp duty exemption, but from January onwards you could save more than RM15,500. That amount assumes a 90% loan on a RM750,000 property.
“In our pre-announcement analysis, we said extending the stamp duty exemption was our top goal for Budget 2027. We called it a vital measure because it helps more than three out of four buyers.
“The prior schedule had this exemption expiring at the end of next year, but Budget 2027 means more stamp duty relief, for longer.
“Clearly, the government recognised the importance of this measure because it has extended it in two ways. It has increased the maximum price that qualifies for the exemption, and the government has extended the programme out through 2030.
“While stamp duty will be eliminated on both transfer instrument and loan agreement for first homes worth up to RM500,000, it will not be eliminated but substantially reduced for homes priced up to RM750,000. Instead of RM19,875 in stamp duty, a buyer of a RM750,000 property with a 90% loan who qualifies for the exemption would be liable for only around RM4,300.
“This is a big event, because it affects so many Malaysians. Even before lifting the maximum price threshold, more than three-quarters of all sales fell into the price range that qualified for the exemption.”
Nearly RM1 Billion for Affordable Public Housing
Mr Ansari said, “Apart from extending and lifting the threshold for the stamp duty exemption, the other big announcement in the budget is that almost RM1 billion will go to public housing.
“The public housing funding can be very impactful and could create almost 13,000 homes. That’s the number you could produce if you dedicated the entire amount to the Rumah Mesra Rakyat programme and produced homes at the cost outlined in Budget 2026.
“Rumah Mesra Rakyat builds subsidised three-bedroom, 750-square-foot homes, usually in rural areas, for people who already own the land.
“However, Rumah Mesra Rakyat is just one of the key programmes that will receive this money. The other is Program Residensi Rakyat, or PRR, which is public housing.
“Both Rumah Mesra Rakyat and PRR are designed to provide subsidised homes to the families that most need them. They are cost-effective and have a significant impact for thousands of families. The allocation in Budget 2027 will make a big difference to families in Malaysia.
“The budget also includes four new housing projects. They will be located in Kulai, Johor; Nilai, Negeri Sembilan; Paya Rumput, Melaka; and Pertang Valley, Terengganu.”
Budget 2027’s Other Key Housing Announcements
Mr Ansari said, “In our pre-announcement analysis, our second goal for Budget 2027 was that the government helps buyers obtain mortgages in the affordable band, where loan rejections are highest. The new budget does that.
“The Housing Credit Guarantee Scheme, or SJKP, will provide up to RM20 billion in housing financing guarantees. That could help as many as 80,000 first-time buyers, and it focuses especially on the self-employed who do not have a fixed income. This is an effective tool for buyers who can afford a home but struggle to get a loan.
“There is also good news for buyers stuck with abandoned projects. The government wants zero abandoned housing projects by 2030. It is offering rescuing contractors or developers and original purchasers a full exemption on stamp duty for loan agreements and transfer instruments from 2027 through 2030. This helps families who may have been waiting years for homes they have already paid for.
“When you look at it as a whole, Budget 2027 is a powerful one for housing access and affordability.”
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