Property Market Poised For Growth In 2026, Backed By Budget 2026, 13MP - Juwai IQI

KUALA LUMPUR, Sept 23 (Bernama) -- 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 said the country could expect more affordable housing options alongside increased demand for luxury properties from inbound tourists and expatriates.

“IQI believes the budget measures could boost residential transaction volumes by three to five per cent in 2026 compared to full-year 2025 levels.

“First-home buyers and those in the lower mid-market price segment are expected to lead this growth,” Kashif said in a statement today. 

He also said that the biggest drivers behind this uptick would be the RM15 billion allocated for Sumbangan Tunai Rahmah (STR) and Sumbangan Asas Rahmah (SARA) cash assistance, which would help families afford larger homes.

 Kashif added that 2026 would be the first full year in which households benefit from the expanded RM15 billion STR/SARA allocation.

“For a family earning around RM3,000 monthly, the typical affordable house price, based on keeping mortgage expenses below 30 per cent of annual income, would increase from RM209,000 to about RM279,000 with an additional RM300 a month from STR/ SARA,” he said.

A better-off family earning about RM4,850 per month could also stretch their budget significantly, with the affordable house price rising from about RM339,000 to over RM408,000, aligning with many new affordable housing options in urban areas.

Additionally, borrowing costs are already lower thanks to the July 2025 Overnight Policy Rate (OPR) interest rate cut to 2.75 per cent.

The budget also includes step-up financing for households without fixed income documentation, facilitated by Syarikat Jaminan Kredit Perumahan Bhd, the government-owned mortgage guarantee company.

This financial support, first announced in the 2025 Budget, is likely to continue in 2026, said Kashif.

On the outlook for 2025 and 2026, Kashif expects transaction volumes to grow in the second half of 2025 and into 2026, supported 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), all of which would drive housing demand and new construction.

“The market is healthy and resilient, supported by high employment and strong economic growth,” he said.

Kashif noted that Malaysia’s property market hit a decade-high in 2024, with 420,525 transactions worth a total of RM232.3 billion.

The new data shows that, in the first half of 2025, transactions eased by 1.3 per cent year-on-year.

“However, values rose by 1.9 per cent. This is a situation of resilient pricing with softer volumes,” he said.

-- BERNAMA