Budget 2026: Increased rent-to-own support a boost for the ‘sandwiched’ middle class, says Rehda

KUALA LUMPUR, Oct 11 — Property developers have welcomed the government’s call for financial institutions to support the rent-to-own initiative, saying it will help more Malaysians achieve homeownership.

Real Estate and Housing Developers’ Association (Rehda) Malaysia president Datuk Ho Hon Sang said the initiative would especially benefit the middle-income group, who often fall between the cracks — not qualifying for affordable housing but unable to afford higher-end properties.

“We commend the continued support for first-time homebuyers, particularly the stamp duty exemption for the memorandum of transfer and loan agreements for homes priced up to RM500,000, which has been extended until December 2027. This extension of over two years will greatly benefit many buyers,” he said in a statement.

Rehda added that the expansion of the Housing Credit Guarantee Scheme to RM20 billion would further stimulate the housing market and potentially benefit around 80,000 prospective homeowners.

The association also said it looks forward to further details on the tax exemption for developers converting or modifying commercial buildings into residential units, noting that such measures would ease their financial burden.

UEM Sunrise Bhd officer-in-charge and chief financial officer Hafizuddin Sulaiman said enhancing access to home financing and boosting housing supply through rent-to-own and build-then-sell schemes will create long-term value for stakeholders and support national development goals.

Mah Sing Group Bhd founder and group managing director Tan Sri Leong Hoy Kum welcomed the move to raise the Lembaga Pembiayaan Perumahan Sektor Awam (LPPSA) financing limit from RM600,000 to RM1 million, calling it a timely response to current economic realities.

“This will give civil servants greater access to homeownership and further strengthen the housing sector,” he said, adding that the extension of full stamp duty exemptions for homes priced up to RM500,000 until the end of 2027 will continue to ease financial pressures for first-time buyers.

Knight Frank Malaysia group managing director Keith Ooi also noted that Budget 2026’s emphasis on environmental, social and governance (ESG) factors in economic and development planning marks a positive step.

“The introduction of carbon taxation and green tax incentives reflects a strong policy direction that will shape investment decisions across the real estate and construction industries,” he said. — Bernama