The short answer
Budget 2027 proposes a full stamp duty exemption on the loan agreement and transfer instrument for first homes up to RM500,000, and for first homes up to RM750,000 a full exemption on the first RM500,000 plus 50% off the rest. It applies to sale and purchase agreements signed from 1 January 2027 to 31 December 2030. It also keeps up to RM20 billion in SJKP financing guarantees for 80,000 first-time buyers, allocates nearly RM1 billion to affordable housing, and adds a stamp duty exemption for rescuing abandoned housing projects. The reports we reviewed show no change to RPGT or foreign-buyer rules. All of this is proposed until Parliament passes it.
Quick facts
- Tabled: 9 October 2026, by Prime Minister Anwar Ibrahim
- First home up to RM500,000: full stamp duty exemption (loan agreement and transfer)
- First home RM500,001 to RM750,000: first RM500,000 fully exempt, 50% off the balance
- Applies to: SPAs signed 1 January 2027 to 31 December 2030
- SJKP: up to RM20 billion in guarantees for 80,000 first-time buyers
- Affordable housing: nearly RM1 billion (Rumah Mesra Rakyat, Residensi Rakyat)
- Not reported: RPGT change, foreign-buyer change, new Home Ownership Campaign
- Status: proposals, subject to Parliament and gazette
Prime Minister Anwar Ibrahim, who is also Finance Minister, tabled Budget 2027 in the Dewan Rakyat on 9 October 2026. This guide covers the property and housing measures reported on the day. Everything below is a proposal until the Budget is passed and the exemptions are gazetted. For what it means for the market, read our companion piece, how Budget 2027 affects the property market.
The headline: first-home stamp duty relief to 2030
| First home price | Proposed relief |
|---|---|
| Up to RM500,000 | Full stamp duty exemption on the loan agreement and the instrument of transfer |
| RM500,001 to RM750,000 | Full exemption on the first RM500,000, plus a 50% exemption on the remaining amount |
| Applies to | Sale and purchase agreements signed from 1 January 2027 to 31 December 2030 |
The current exemption for first homes up to RM500,000, extended in Budget 2026, covers agreements signed through 31 December 2027. Budget 2027 proposes to extend that to 2030 and to add a partial tier for homes up to RM750,000. For the existing rules, see our first-time buyer guide.
What the saving looks like
Using Malaysia's standard transfer stamp duty scale (1% on the first RM100,000, 2% up to RM500,000, 3% up to RM1 million), the transfer duty on a first home would change as follows. These are illustrative figures; confirm with your lawyer once the exemption is gazetted.
| Home price | Transfer duty today | Under the proposal | Saving |
|---|---|---|---|
| RM400,000 | RM7,000 | RM0 | RM7,000 |
| RM500,000 | RM9,000 | RM0 | RM9,000 |
| RM600,000 | RM12,000 | RM1,500 | RM10,500 |
| RM700,000 | RM15,000 | RM3,000 | RM12,000 |
| RM750,000 | RM16,500 | RM3,750 | RM12,750 |
The loan agreement is stamped separately, at 0.5% of the loan. For a RM500,000 home with a RM450,000 loan, that is RM2,250, which the proposal also exempts. For homes above RM500,000, check how the 50% rule applies to the loan agreement once the details are published.
Financing support
- SJKP guarantees: up to RM20 billion in financing guarantees through the Housing Credit Guarantee Scheme, for about 80,000 first-time buyers, especially self-employed people without fixed incomes. The same headline figures were announced for the scheme under Budget 2026, so treat this as continued support. See our SJKP guide.
- Gig workers: RM270 million from BSN and Agrobank for gig workers to start a business or buy a first home.
Affordable housing and land
- Nearly RM1 billion for Rumah Mesra Rakyat and the Residensi Rakyat programme, with new projects in Kulai (Johor), Nilai (Negeri Sembilan), Paya Rumput (Melaka) and Lembah Pertang (Terengganu).
- Bandar MADANI Bukit Jalil: a residential township with supporting facilities including vertical schools, to be developed by PNB. Registration for phase one opens on 12 October 2026.
- Rumah MADANI in Belfield, Kuala Lumpur: at least 2,500 units on about 4.5 hectares, with 70% reserved for Bumiputera buyers.
- Land in Kuala Lumpur: 50 acres of Malay Reserve Land gazetted, with Petronas developing the first 10 acres for affordable housing, and 50 acres of strategic land valued at RM1 billion endowed to Yayasan Pelaburan Bumiputra.
- Urban upgrades: RM400 million for DBKL for about 120 acres of green space, park rehabilitation and public housing upgrades, and RM50 million for Komuniti Angkat MADANI in urban People's Housing Projects. The Edge also reports that 100 acres of leased land at Bukit Kiara is to be gazetted as a federal park.
- Public quarters: RM2.3 billion for police, military, teachers, doctors and firefighters' quarters.
Abandoned housing projects
The government proposes a full stamp duty exemption on loan agreements and transfer instruments between rescuing contractors or developers and the original buyers of abandoned projects, for the same 2027 to 2030 window. The stated target is zero abandoned housing projects by 2030.
Incomes, taxes and wages
- Individual tax relief limit rises from RM9,000 to RM12,000, with relief extended to postpartum care and children's tuition fees. Reports say about 5 million taxpayers could save up to RM1,600 a year.
- Minimum wage rises from RM1,700 to RM2,000 from June 2027.
- Cash aid: Sumbangan Tunai Rahmah rises to RM16 billion, and SARA assistance of up to RM150 a month goes to nine million recipients.
Transport and growth zones
- Johor Bahru: an elevated autonomous rail transit (e-ART) system, more buses and added KTM Komuter frequency. See our RTS Link guide and JS-SEZ guide.
- National rail: ECRL Phase 1 expected to start running from December, and 42 new train sets for ETS and KTM Komuter.
- Investment zones: reports cite RM132 billion in JS-SEZ investment recorded from 2025 to June 2026, a Single Family Office scheme at Forest City, and a RM1.25 billion Elmina fund for data centres and logistics.
What was not reported
In the reports we reviewed on 9 October 2026, there was no change to the real property gains tax (RPGT), no new rule for foreign buyers (the 8% stamp duty for non-citizens from Budget 2026 still stands; see our foreign buyer guide), no MM2H change, and no new Home Ownership Campaign for unsold completed homes, which the developers' association REHDA had asked for. Check the full Budget speech and the Finance Bill for anything these summaries missed.
What happens next
Reports give the parliamentary schedule as policy debate from 12 to 22 October, ministers' replies from 26 to 29 October, and committee stage from 2 to 26 November. The stamp duty exemptions then need to be gazetted through an exemption order before they take effect. Sources: Bernama, The Star, The Edge, Malay Mail, NST and The Sun, 9 October 2026.
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Frequently asked questions
What is the Budget 2027 stamp duty exemption for first-time homebuyers?
Budget 2027 proposes a full stamp duty exemption on loan agreements and transfer instruments for first homes up to RM500,000. For first homes up to RM750,000, the first RM500,000 is fully exempt and the remainder gets a 50% exemption. It applies to sale and purchase agreements signed from 1 January 2027 to 31 December 2030.
Is the Budget 2027 stamp duty exemption confirmed?
No. It was announced as a proposal when the Budget was tabled on 9 October 2026. It needs parliamentary approval and an exemption order before it takes effect.
Does Budget 2027 change RPGT or foreign buyer rules?
The reports we reviewed show no change to RPGT, MM2H or foreign-buyer stamp duty. The 8% stamp duty for non-citizen buyers from Budget 2026 still stands.
What is the SJKP in Budget 2027?
The Housing Credit Guarantee Scheme (SJKP) will provide up to RM20 billion in financing guarantees to help about 80,000 first-time buyers, especially self-employed people without fixed incomes, secure loans.
When does the minimum wage rise in Budget 2027?
From RM1,700 to RM2,000 from June 2027, according to Budget 2027 reports.
What is Bandar MADANI Bukit Jalil?
A planned residential township in Bukit Jalil, Kuala Lumpur, to be developed by PNB with facilities including vertical schools. Registration for phase one opens on 12 October 2026.
