Property developers urge banks to support rent-to-own scheme

Property developers hope the government’s call for financial institutions to support the rent-to-own initiative will enable more Malaysians to own houses.

Real Estate and Housing Developers’ Association (Rehda) Malaysia president Ho Hon Sang said this will benefit the middle-income group, who are ineligible for affordable housing but who are unable to buy higher-priced housing.

“We laud the continued provisions for first-time homebuyers, such as the stamp duty exemption for memorandum of transfers and loan agreements for housing priced up to RM500,000 until December 2027. This extension of more than two years will benefit many,” he said in a statement.

Rehda Malaysia said expanding the Housing Credit Guarantee Scheme to RM20 billion will also spur the housing market. The move is expected to benefit 80,000 potential house owners.

The statement also said the housing association awaits clarification on the tax exemption given to developers when modifying and converting commercial buildings to housing.

“This will lift financial pressure on developers undertaking these tasks,” the statement said.

Separately, UEM Sunrise Bhd officer-in-charge and chief financial officer Hafizuddin Sulaiman said efforts to enhance home financing accessibility and expand housing supply via rent-to-own and build-then-sell will help deliver long-term value to stakeholders.

“It will contribute to the national development agenda (because housing is a basic need),” he said.

Meanwhile, Mah Sing Group Bhd founder and group managing director Leong Hoy Kum said the initiative to raise the Public Sector Housing Financing Board financing eligibility limit from RM600,000 to RM1 million reflects a clear understanding of the evolving economic landscape.

“The move will benefit civil servants by enhancing their homeownership opportunities and supporting overall housing sector growth,” Leong said.

“The government’s proposal to extend full stamp duty exemption on the instrument of transfer and loan agreement for units priced up to RM500,000 until Dec 31 2027, will continue to ease first-time housebuyers’ financial burdens,” Leong said.

Knight Frank Malaysia group managing director Keith Ooi said it is encouraging that Budget 2026 has integrated environmental, social, and governance priorities into economic and development planning.

“The introduction of carbon taxation, coupled with green tax incentives, signals a firm policy shift that will influence investment decisions across the real estate and construction sectors,” he added.

- Bernama

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