PETALING JAYA: Budget 2026 is set to significantly ease the path to homeownership for Malaysians, particularly those in the B20 and M40 groups, with measures that make first-home buyers the “real winners”, 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,” he said.
The three most significant policies, Kashif noted, are the introduction of a foreign buyer duty of up to 8%, expanded support for first-home buyers through RM20 billion worth of Housing Credit Guarantee Scheme (SJKP) guarantees and stamp duty exemptions, and major transport infrastructure projects that will reshape housing demand.
Kashif said the foreign buyer duty will enhance perceptions of fairness in the property market.
“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,” he said.
While the additional costs may discourage some foreign buyers, he pointed out that the impact on overall transaction volumes will be limited as offshore purchases account for less than 0.5% of residential transactions.
Kashif described first-home buyers as the “real winners” in the budget, with stamp duty exemptions now covering both transfer instruments and loan agreements for homes priced up to RM500,000, extended until Dec 31, 2027.
“For example, on a RM300,000 home, you’d save about RM5,000 on the transfer duty plus about RM1,350 on the loan agreement duty, a total savings of RM6,350,” he said.
He added that the doubling of SJKP guarantees to RM20 billion will help about 80,000 buyers, including gig workers and the self-employed, secure mortgages without traditional payslips.
“These lower entry costs and easier approvals create a clearer path to owning your first home,” Kashif said.
He also highlighted the government’s investment in transport infrastructure, which is set to drive new housing demand.
“The new double-track electric train service in Johor will make commuting easier, while the Klang Valley LRT3 is already spurring capital gains and new construction in nearby neighbourhoods. Other major projects including the East Coast Rail Link and the Penang LRT, will also have lasting impacts on housing markets,” he said.
Kashif added that renters are not left out, with RM143 million allocated for renovations to PPR and strata homes, a tax deduction for converting commercial properties into residential units, and RM95 million for upgrading facilities in Chinese and Indian villages.
“Overall, the budget is a boon for anyone who lives in a home in Malaysia. First-time buyers will benefit from lower upfront costs and easier loan approvals, while renters can expect better quality housing and improved living conditions,” he said.
