By Kashif Ansari
Budget 2026 is a housing budget that will make it easier for more B20 and M40 Malaysians to obtain financial security in their own homes, according to Juwai IQI Co-Founder and Group CEO Kashif Ansari.
“This budget does something for everyone who lives in a home, and just about everyone does. There are at least nine separate measures that directly affect the housing market, but three of them will have the biggest impact. The three most impactful are the foreign buyer duty of up to 8%, first-home buyer support via RM20 billion of SJKP guarantees and stamp duty exemptions, and the transport mega projects that will reshape housing demand. Let’s look at each in turn.”
Foreign Buyers to Pay More
“The Foreign Buyer Duty’s biggest impact will be to increase the sense of equity and fairness that homebuyers have about the housing market. That’s why I consider it the first of the three most impactful housing measures in the budget.
“Everyone knows we need foreign investment, but local buyers want to know the system is fair for them. The Foreign Buyer Duty still permits foreign investment and will reassure locals that they actually have the advantage in the housing market.
“If the duty ends up being 4%, it will work out to be about RM40,000 on a RM1 million condo. At 8%, it would be double that. By comparison, a local would pay a duty of RM24,000 on the instrument of transfer for the same property.
“The extra costs of the duty will discourage some foreign buyers. Vendors of high-end property in buildings that are popular with offshore buyers may find it takes them slightly longer to sell their homes.
“The impact on transaction numbers will be minimal because offshore foreign buyers account for less than half a percent of residential transactions, according to our estimate. Out of more than 260,000 residential transactions in 2024, foreign buyers may have accounted for 60 to 100 purchases.”
First-Home Buyers Are the “Real Winners in this Budget”
“The second most impactful housing policy in Budget 2026 is the direct support for first-home buyers. First-home buyers are the real winners in this budget, and they received new support in the form of stamp duty exemptions and RM20 billion of SJKP guarantees.
“The stamp duty waiver now covers both the transfer instrument and the loan agreement for homes priced up to RM500,000. It also has been extended until 31 December 2027, helping make your first home far more attainable. For example, on an RM300,000 home, you’d save about RM5,000 on the transfer duty, plus about RM1,350 on the loan agreement duty. Your total savings would add up to about RM6,350.
“On top of that, the Housing Credit Guarantee Scheme, the SJKP, has been doubled to RM20 billion, with capacity for roughly 80,000 buyers. That will help gig workers and the self-employed obtain a mortgage with a government-backed guarantee, even though they can’t show regular payslips to the bank.
“These lower entry costs and easier approvals create a clearer path to owning your first home.”
Transport Megaprojects to Drive Demand
“The third big policy area in the budget that will have a significant impact on housing demand is the funding for transport megaprojects. These projects are already changing where we buy and what developers build.
“The new double-track electric train service in Johor will make it easier to commute into Central Johor from suburban areas. The Klang Valley LRT3 is spurring capital gains and new construction in neighbourhoods within about 700 metres of the stations. Homebuyers love the idea of living in a diverse and walkable neighbourhood with local retail and amenities and easy access to transit.
“Other big projects mentioned in the budget that have a significant impact on the housing market include the East Coast Rail Link, the LRT from George Town to Penang Sentral, and the effort to turn the Johor–Singapore Special Economic Zone into a hub for investment.”
The Budget’s Impact on Buyers & Renters
“For home buyers, the budget has a range of benefits, many of which apply in different situations. First-home buyers benefit from lower upfront costs because of the transfer and loan agreement duty exemptions. Gig workers and the self-employed find it easier to get a mortgage. RM672 million is being spent on building affordable homes under the projects.
“Renters aren’t left out. They benefit from the RM143 million investment in renovations to PPR and strata homes. More rental properties should become available due to the special tax deduction for converting commercial properties into residential. And RM95 million is being invested to improve public facilities and quality of life in Chinese New Villages and Indian Villages.
“So, if you’re a first-time buyer who is spending up to about RM500,000, the market is getting much more friendly to you. You’ll have lower upfront costs, find it more easy to get a loan, and be able to choose from more affordable options. Renters should expect better quality homes and quality of life. Overall, the budget is a boon for anyone who lives in a home in Malaysia.”
The author is the Co-Founder and Group CEO of Juwai IQI
