Kuala lumpur: Budget 2026 is expected to strengthen Malaysia’s property market across the board through targeted subsidies, major infrastructure investments, and growth initiatives under the 13th Malaysia Plan (13MP). Juwai IQI co-founder and group chief executive Kashif Ansari indicated that the country could expect more affordable housing options alongside increased demand for luxury properties from inbound tourists and expatriates.
According to BERNAMA News Agency, Kashif stated that the budget measures could potentially boost residential transaction volumes by three to five percent in 2026 compared to full-year 2025 levels. He noted that first-home buyers and those in the lower mid-market price segment are expected to lead this growth. A significant factor driving this increase is the RM15 billion allocated for Sumbangan Tunai Rahmah (STR) and Sumbangan Asas Rahmah (SARA) cash assistance, which would aid families in affording larger homes.
Kashif explained that 2026 would be the first full year in which households benefit from the expanded RM15 billion STR/SARA allocation. For families earning around RM3,000 monthly, the typical affordable house price could rise from RM209,000 to about RM279,000 with an additional RM300 a month from STR/SARA. Similarly, families earning about RM4,850 per month could see their affordable house budget increase from about RM339,000 to over RM408,000, aligning with new affordable housing options in urban areas.
Furthermore, borrowing costs have decreased following the July 2025 Overnight Policy Rate (OPR) interest rate cut to 2.75 percent. The budget also encompasses step-up financing for households without fixed income documentation, facilitated by Syarikat Jaminan Kredit Perumahan Bhd, a government-owned mortgage guarantee company. This financial support, initially announced in the 2025 Budget, is expected to continue in 2026.
Kashif also commented on the outlook for 2025 and 2026, predicting transaction volumes to grow in the latter half of 2025 and into 2026, bolstered by major infrastructure projects such as the Johor Bahru-Singapore Rapid Transit System Link, the Johor-Singapore Special Economic Zone, and Mass Rapid Transit 3 (MRT3), which are anticipated to drive housing demand and new construction.
He remarked that the market is healthy and resilient, supported by high employment and strong economic growth. Malaysia’s property market reached a decade-high in 2024, with 420,525 transactions worth a total of RM232.3 billion. New data indicates that in the first half of 2025, transactions eased by 1.3 percent year-on-year, while values rose by 1.9 percent, reflecting a situation of resilient pricing with softer volumes.