KUALA LUMPUR: The government's proactive measures in the 2025 Budget showcase a strong commitment to supporting first-time homebuyers in Malaysia, said Kenneth Soh, Country Manager for Malaysia at PropertyGuru and iProperty.
He noted that affordability remains a major concern, and the government's allocation of RM900 million for the People's Residence Programme (PRR) and Rumah Mesra Rakyat (RMR) projects is a timely initiative.
This move, expected to benefit nearly 17,500 new residents, directly addresses the financial challenges faced by first-time homebuyers, he said.
Soh highlighted findings from PropertyGuru's H1 2024 Consumer Sentiment Study, which revealed that the 1Malaysia Housing Programme (PR1MA) was viewed as the most beneficial housing initiative, followed by Rumah Selangorku and Projek Perumahan Rakyat (PPR).
"We believe the continued allocation towards affordable housing schemes reinforces the critical need to provide more affordable housing options in a market where inflation, rising interest rates, and the cost of living continue to impact the ability of many Malaysians to purchase their first home," he said.
He also emphasised the importance of the RM12.8 billion allocation for the House Credit Guarantee Scheme (SJKP), which aims to support 57,000 first-time buyers. This expanded scheme increases financial accessibility for individuals with limited financial history or lower incomes, helping them qualify for home loans.
The study found that 44% of first-time buyers struggle to save for down payments, further highlighting the impact of inflation and rising costs on homeownership. Soh explained that enhanced support under SJKP is crucial in helping first-time buyers secure homes.
Additionally, the Step Up Financing Scheme under SJKP, which offers lower loan repayments for the first five years, is specifically designed to reduce the financial burden on young Malaysians and first-time homebuyers. Soh pointed out that high interest rates remain a significant obstacle for many potential homeowners, with 40% of respondents citing it as a major challenge in managing mortgage payments.
"These initiatives collectively reflect the government's commitment to enabling more Malaysians to overcome the hurdles of home financing and achieve their homeownership aspirations," he said.
The government also introduced income tax relief on home loan interest payments, offering up to RM7,000 for properties priced at RM500,000 or below and RM5,000 for properties between RM500,000 and RM750,000.
"As many Malaysians are looking for ways to ease their financial burden, our study revealed that 50 per cent of respondents expressed a strong desire for increased government support through affordable housing schemes and financial subsidies. This relief aligns with the urgent need for supportive measures in the housing market," Soh said.
"It reflects the government's responsiveness to the challenges faced by potential homeowners and reinforces their commitment to creating a more accessible and affordable housing landscape in Malaysia."