📈Real Estate Insight: What’s Up With Budget 2026 & Property Sentiment?

🏗️Developer Sentiment Turns More Conservative
According to REHDA’s latest surveys, developers are entering 2H 2025 with caution.  
    •    New residential launches in 1H 2025 fell 26% compared to previous period, with only 12,938 units introduced.  
    •    Only 24% of those new units were sold.  
    •    About 70% of developers expect construction costs to rise by at least 3%, largely due to SST, labour, and material cost pressures — 73% are considering raising prices 3-5%.  

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Budget 2026: Measures That Affect Homebuyers & Investors
The recently passed Budget 2026 includes several property-related policies with real impact:
🏡  Full stamp duty exemptions (for both transfer and loan instruments) for first-time homebuyers buying up to RM500,000, extended until 31 December 2027.  
🌍  Foreign buyers (non-citizens & foreign companies) may see higher stamp duty rates (4% to 8%) on residential property transfers, while permanent residents are exempt.  
🏢 A new tax deduction (10%) is proposed for developers converting commercial buildings into residential use (capped at RM10 million) to encourage adaptive reuse.  

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What This Means for You (Buyer / Investor / Developer)
👩‍💼 Buyers (especially first-timers): The extended stamp duty exemption helps lower your upfront cost. This is a timely window to enter the market if your budget is within RM500,000.
💼 Investors: Because launch volumes are shrinking and developers may raise prices, competition for quality projects will intensify. Focus on projects with strong fundamentals (transport links, demand).
🏗️ Developers: Cost pressures are real. Many already anticipate raising prices. Efficient project planning, cost management, and policy engagement will be crucial.

⚠️ Disclaimer
This content is for informational purposes only and not investment or property advice. Real estate decisions should be made after consulting a qualified agent or financial advisor to ensure they fit your goals, budget, and risk level.