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

The Real Estate and Housing Developers’ Association (Rehda) has welcomed key measures in Malaysia’s Budget 2027 aimed at supporting homeownership, while calling for further action to tackle rising development costs and housing affordability. The association’s president, Datuk Zaini Yusoff, stated that expanded stamp duty exemptions for first-time homebuyers would help alleviate the financial burden of purchasing a property.

Properties priced up to RM500,000 would receive full exemptions, while those up to RM750,000 would receive partial exemptions.

Zaini expressed optimism that the government would review eligibility thresholds to align with market conditions, potentially extending the incentives to properties up to RM1 million. Additionally, Rehda welcomed stamp duty exemptions for rehabilitating abandoned housing projects, which could provide relief to affected purchasers.

The association also welcomed RM20 billion in housing financing guarantees under Syarikat Jaminan Kredit Perumahan, benefiting around 80,000 first-time homebuyers, especially those with irregular incomes.

The government’s commitment to affordable housing, with nearly RM1 billion allocated for Rumah Mesra Rakyat and Programme Residensi Rakyat, was seen as encouraging. Rehda also praised efforts by Petronas and the Bandar Madani Bukit Jalil development to expand housing opportunities, particularly for lower-income groups. The association hailed the extension of investment tax allowances of up to 100% for green technology projects and assets until December 31, 2030, as a measure to encourage sustainable practices among smaller developers.

However, Rehda remained concerned about the rising development costs, including construction materials, labor, and regulatory compliance. The association called for further measures to alleviate this pressure on developers and, by extension, the housing market.