Full Stamp Duty Exemption For First Time Buyers Extended Till 2027
The government is doubling down on housing affordability and inclusivity under Budget 2026, with key measures to ease homeownership, promote sustainable urban living and encourage private sector participation.
During the tabling of Budget 2026 on Oct 10, Prime Minister Datuk Seri Anwar Ibrahim announced a series of initiatives to strengthen the property sector, including the extension of full stamp duty exemption for first-time homebuyers purchasing homes priced up to RM500,000 until Dec 31, 2027.
“To ensure a fair and stable property market, a flat stamp duty rate of 4% to 8% will apply to property purchases by non-citizens and foreign companies, excluding permanent residents.
“This will ensure the real estate market remains competitive while curbing excessive price increases for the benefit of the people,” Anwar said.
Additionally, aligned with the 13th Malaysia Plan, Anwar said the government is urging financial institutions to support rent-to-own and build-then-sell schemes to provide more flexible ownership pathways.
“To drive urban regeneration, a special 10% tax deduction (capped at RM10 million) will be offered for the renovation or conversion of commercial buildings into residential units,” he said, adding that the affordable housing agenda will receive RM672 million to fund the People’s Residency Programme (PPR) and Rumah Mesra Rakyat, and it is expected to benefit over 33,000 residents nationwide.
Meanwhile, Anwar also announced that the Housing Credit Guarantee Scheme will also expand to cover 80,000 applicants, doubling its guarantee capacity to RM20 billion, particularly benefitting gig workers and self-employed Malaysians.
“Some RM500 million will also be allocated to repair or rebuild 3,300 dilapidated homes, including 380 for fishermen, while RM143 million will go toward upgrading low- and medium-cost flats, including lift replacements under the PPR programme.
“Additional allocations include RM90 million to improve infrastructure in Chinese New Villages and Indian villages, and RM95 million to enhance public toilets and parks nationwide,” he said.
In a move towards smart urban living, Anwar also announced three pilot Vertical School projects under the Kota Madani initiative, integrating schools within residential developments in Putrajaya, Penang and Kuala Lumpur.
