Property outlook intact

PETALING JAYA: Real estate experts remain upbeat about the property market outlook, with sentiment underpinned by supportive government policies and a generally favourable economic environment.

They acknowledged that initiatives such as the Housing Credit Guarantee Scheme (SJKP) will help spur homeownership.

JLL Malaysia managing director Jamie Tan said the continuation of the SJKP is important for the market.

“The homeownership problem is not always about whether a household can afford the monthly instalment.

“Self-employed individuals, gig workers and others with irregular incomes may have the capacity to service a loan but struggle to meet conventional lending requirements.

“The SJKP helps address this financing gap by providing a government guarantee through participating financial institutions,” he told StarBiz.

Budget 2027, which was tabled last month, included the provision of up to RM20bil in housing financing guarantees through the SJKP to assist 80,000 first-time homebuyers, particularly self-employed individuals without a fixed income.

Tan noted that Budget 2026 had already announced RM20bil in SJKP guarantees, targeting more than 80,000 first-time buyers. “Budget 2027 cites the same headline allocation and target, although the government has described the latest announcement as an additional RM20bil to help another 80,000 buyers.

“The government should clarify how the new allocation relates to the previous commitment, how much guarantee capacity has already been utilised, and how many additional households are expected to benefit.”

He added that the success of SJKP should be measured not just by the amount of guarantees announced, but by how many people who would otherwise have been unable to secure financing are helped into homeownership.

“Overall, Budget 2027 provides some support for residential demand, but I would not describe it as a major stimulus for the property market.

“Its impact will depend on whether the measures translate into actual purchases, and whether developers respond by providing homes that are affordable and suitable for the needs of Malaysian households.”

CBRE | WTW group managing director Tan Ka Leong concurred initiatives like the SJKP would facilitate homeownership.

“The RM20bil SJKP guarantee should help widen the buyer pool, particularly among self-employed and non-fixed income households,” he said.

Additionally, Ka Leong said the partial stamp duty exemption for homes up to RM750,000 should provide support to the secondary or subsale market.

He pointed out that this was the segment where buyers are generally more sensitive to upfront transaction costs.

“It should also benefit landed homes in suburban locations, particularly where prices remain within the qualifying range and buyers are seeking larger living spaces at more accessible price points.”

Olive Tree Property Consultants founder and chief executive officer Samuel Tan, meanwhile, said the initiatives announced at Budget 2027 were “supportive, and incremental” to the property market.

“It prioritises mass-market homeownership and eases entry barriers for first-time buyers.”

He highlighted that Budget 2027 introduced a progressive tier for Sales and Purchase Agreements signed between Jan 1, 2027 and Dec 31, 2030.

“Properties up to RM500,000 will receive full exemption on both the instrument of transfer and loan agreements.

“Those between RM500,001 and RM750,0000 will receive full exemption on the first RM500,000 coupled with a 50% exemption on the remaining balance up to RM750,000,” he explained.

Samuel said this policy will help those that wish to purchase properties within these price bands.

“It will also be a boost for the self-employed and gig economy. While consumer sentiment for affordable housing is bullish, the Jan 1, 2027 effective date for the RM500,000 to RM750,000 tier introduces an incentive for early commitment.”

Moreover, Samuel said buyers could enjoy savings of about RM11,000 on a RM500,000 property, after accounting for transfer and loan duties.

“That is meaningful for entry-level buyers. Data from the National Property Information Centre showed that property transactions fell 8% year-on-year in the first quarter of 2026.

“However, prices still edged up 1.7%, pointing to muted market activity rather than a meaningful recovery.”

Overall, Samuel said Budget 2027’s housing measures focused on expanding stamp duty exemptions for first-time homebuyers, and opined that the RM20bil SJKP provides guarantees and support for the revival of abandoned projects.

“The SJKP addresses a genuine financing gap for self-employed and gig-economy buyers. However, it builds on an existing initiative rather than introducing a new measure to spur demand.

“There was also no Home Ownership Campaign, which hopefully will be introduced eventually.”

In the near term following the Budget, Samuel is hopeful that sentiment will improve modestly.

“It is not a property-led budget. The stronger signals are for growth corridors, including the Johor-Singapore Special Economic Zone (JS-SEZ), where execution will determine whether investments translate into real activity.

“For the Johor–Singapore corridor, delivery timelines matter more than announcements.”

It was reported last week that the JS-SEZ recorded RM88.83bil in approved investments between January 2025 and June this year, with the potential to create 28,755 jobs.

It was reported that 45% of the total approved investments amounting to RM40.3bil had been realised, involving projects that are expected to generate 12,796 jobs.