Malaysia Budget 2023: Real Estate Highlights

Inside the Budget

This updates edition is prepared based on the Malaysia Budget 2023 speech at 4.00 pm today.

The Malaysian Finance Minister, YB Tengku Zafrul announced the Budget 2023 speech with the theme “Strengthening Recovery, Facilitating Reforms Towards Sustainable Socio-Economic Resilience of Keluarga Malaysia” underlying Budget 2023 (“Budget 2023”).

An allocation of RM372.3 billion is provided for Budget 2023 as compared to RM332.1 billion in Budget 2022.

Nominal Stamp Duty for Transfer of Property by Way of Love and Affection

In previous years, 100% stamp duty waiver was only provided for transfer between spouses. From year 2023 onwards, transfer of property by way of love and affection between family members such as parents to children, husband to wife or grandparents to grandchildren will subject to a nominal stamp duty of RM10.00.

Stamp Duty Exemption for First Home Buyers

First time home buyers will get an increase in stamp duty exemption on instruments of transfer and loan agreements from 50% to 75% until 31 December 2023 for property priced between RM500,000.00 to RM1,000,000.00. The full exemption of stamp duty for property priced below RM500,000 is still applicable up to 2025.

Housing Projects for Low-Income Group

RM367 million is allocated to develop People’s Housing Projects (PPRs) in urban areas. 4,250 housing units worth RM358 million will be built under Rumah Mesra Rakyat.

Low and Medium Cost Strata Development

RM290 million is allocated to replace and maintain lift services in low and medium cost strata development.

Credit Guarantee Scheme

RM3 billion is allocated for housing credit guarantees for those without a stable income.

Subsidy for Construction and Repair of New Houses

RM460 million is allocated to subsidize the construction of new houses and repairs in rural areas. In Sabah and Sarawak, the cap price for this purpose is revised from RM68,000 to RM79,000 for each unit.