KUALA LUMPUR: The government's announcement of tax relief of up to RM7,000 on housing loan interest payments is a proactive step to promote homeownership, said industry players.
Olive Tree Property Consultants chief executive officer Sr Samuel Tan described the announcement as a highlight of 2025 Budget (Belanjawan 2025).
"For example, RM7,000 will be deducted from the chargeable incomes for housing worth more than RM500,000 and RM5,000 for those priced between RM500,000 and RM750,000 for sales and purchase agreement (SPA) signed between Jan 1, 2025 till Dec 31, 2027.
"This is a proactive measure to encourage homeownership," Tan said.
Mah Sing Group Bhd founder and managing director Tan Sri Leong Hoy Kum said the tax relief is a significant step in making homeownership more accessible.
"The tiered tax relief will positively benefit Malaysians aspiring to own their first homes. Mah Sing is committed to supporting these initiatives by offering a wide range of affordably priced properties that cater to the needs of first-time homebuyers and the middle-income segment," he said in a statement.
Meanwhile, Tan pointed out that there were no additional updates on the Madani Deposit Scheme initiative, adding that the proposal aims to offer up to RM30,000 in deposit assistance for first-time homebuyers, without leading to a significant increase in property prices.
"This is a reintroduction of the previous MyDeposit Scheme and My First Home Scheme, designed to lower the financial barriers to homeownership for those in need.
"Extending this initiative through will be apt and will help many who may be short of the initial capital to purchase a house. The property market will respond positively to this," he said.
Tan expressed disappointment that the Home Ownership Campaign (HOC) was not announced, noting that it had been highly anticipated as a means to stimulate growth in the housing sector.
Glomac Bhd chief executive officer, group managing director and executive director Datuk Seri FD Iskandar Mansor expressed hope that with a large budget, there will be a spillover effect to assist and improve purchasing power for Malaysians.
"This enables them to use the increase in purchasing power to buy properties," he said in an interview with the media after the 2025 Budget resentation.