JUWAI IQI – Proposed Budget 2026 Housing Measures To Lift Real Estate Transaction Volumes By Up To 5%  

JUWAI IQI – Proposed Budget 2026 Housing Measures To Lift Real Estate Transaction Volumes By Up To 5%

Budget 2026 will boost both the supply of  affordable housing and the demand for higher-end homes, according to Juwai IQI Co Founder and Group CEO Kashif Ansari. His comments were released today to the  media following the government’s pre-budget announcements. 

“Budget 2026 sets the stage for stronger property markets across the board with  targeted subsidies, major infrastructure investment, and growth initiatives under the  13th Malaysia Plan,” said Ansari. “We expect to see both more affordable housing for  the rakyat and greater appetite for luxury property from inbound tourists and expats. 

Budget to Boost Transaction Volumes by Up to 5 Percent 

“IQI believes the budget measures could lift 2026 residential transaction volumes by  3% to 5% from full-year 2025 levels. First-home and lower mid-market price band  buyers will lead the transaction volume boost. 

“The biggest driver behind these additional transactions will be the RM15 billion of STR  and SARA cash assistance, which will enable families to afford bigger homes. 2026 will  be the first full year in which households experience the expanded RM15b STR/SARA  allocation. 

“It means a family earning around RM3,000 monthly can typically only afford to pay up  to RM209,000. That is if they aim to keep their mortgage expenses no higher than 30%  of annual income. The house price they can afford jumps up to about RM279,000 with  an extra RM300 a month from STR/SARA. 

“A better-off family might earn about RM4,850 per month. With the assistance, they  also can stretch their budget. In their case, it rises from about RM339,000 to over  RM408,000, right in line with many new affordable homes in the cities. 

“The STR and SARA cash assistance programmes aren’t the only things that will make  housing more affordable in 2026. Mortgage borrowing costs are already lower thanks  to the July 2025 OPR interest rate cut to 2.75%. 

“Also, the Budget includes Step-Up Financing for households without fixed income  documentation via the Syarikat Jaminan Kredit Perumahan Berhad, the government owned mortgage guarantee company. This financial support was announced in the  2025 Budget and looks like it will continue in 2026. 

“There’s another programme that will have a direct impact on families’ ability to buy  homes. It’s the three-year tax relief on mortgage interest for homes priced from  RM500,000 to RM750,000. This is currently scheduled to be available to homes  purchased through the end of 2027, and we believe may be extended. 

“These programmes show why the government’s move to shift subsidies from across the-board programmes that benefit better-off Malaysians to those that target just  those who need help is so important. By putting cash directly into households’ hands,  the government makes it easier for families to meet housing needs and obtain  financial independence. 

“Together, all of this means that a 3% to 5% uplift in transaction volumes is a prudent  working estimate for the industry to rely on. 

Economic Growth and Lifting the Ceiling 

“Malaysia’s economic growth has been surprisingly resilient given the global situation.  GDP is projected to grow between 4% and 4.8% this year and to continue growing  steadily in 2026. 

“The government’s encouragement of investment in high-value sectors like  semiconductors, AI, and renewable energy directly boosts growth in sectors that will be  pillars of the economy for the long term. 

“When the top of the economy booms, it always spills over into property. High-value  industries provide jobs with good wages that support housing demand. They also  attract foreign investment and skilled talent, who need housing while living in Malaysia.  That fuels demand for housing at all price levels. 

Residential Market Outlook 

“Malaysia’s property market hit a decade-high in 2024 with 420,525 transactions worth  a total of RM232.3 billion. The new data shows that, in the first half of 2025,  transactions eased by 1.3% year-on-year. However, values rose by 1.9%. This is a  situation of resilient pricing with softer volumes. This kind of market tends to respond  quickly and disproportionately to demand-side support like the kind outlined in the  budget. 

“We expect transactions to grow in the second half of 2025 and in 2026. The major  infrastructure investments like the Johor Bahru–Singapore Rapid Transit System Link,  the Johor–Singapore Special Economic Zone, and MRT3 all support housing demand  and new construction. 

“The market is healthy and resilient, supported by high employment and economic  growth. 

Conclusion 

“Budget 2026 creates opportunity at every level of the housing market,” Ansari  concluded. “It will increase the supply of affordable homes while boosting demand for  premium properties, making the market stronger and more balanced.” 

-END-

Please feel free to share this article too. (links are all below) Thank you!

Sign up for daily investment news updates (FREE since Nov 2013 and FOREVER). 

Please LIKE kopiandproperty.com FB page to get daily updates about the property market beyond kopiandproperty.com articles.

Else, follow me on Twitter here.