KUALA LUMPUR - The government’s allocation of RM900 million for the "Program Residensi Rakyat” (PRR) and "Rumah Mesra Rakyat" housing schemes under Budget 2025 is set to address the critical need for more affordable housing options in the face of economic uncertainty.
PropertyGuru and iProperty Malaysia country manager Kenneth Soh said this is especially vital in a market where inflation, higher interest rates and rising cost of living continue to impact the ability of many Malaysians to purchase their first home.
"We commend the government’s proactive measures outlined in Budget 2025, which clearly demonstrate a strong commitment to addressing the needs of first-time homebuyers in Malaysia,” he said in a statement.
He said the government’s allocation of RM12.8 billion for the House Credit Guarantee Scheme (SJKP) to support 57,000 first-time buyers also marks a significant step in improving financial accessibility for homeownership.
"This expanded scheme broadens eligibility, enabling individuals with limited financial history or lower incomes to qualify for home loans.
"According to our second half of 2024 consumer sentiment study, 44 per cent of first-time buyers struggle to save for down payments, highlighting the impact of inflation, high living costs, and rising interest rates on Malaysians’ ability to achieve homeownership," he said.
Regarding the income tax relief on home loan interest payments, Soh said the relief aligns with the urgent need for supportive measures in the housing market.
He 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.
"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," he said.
He said PropertyGuru Malaysia is committed to empowering consumers with the data and insights they need to make informed homeownership decisions.
"The collaboration between the government and the private sector will be essential in driving long-term solutions for housing affordability.
"We are confident that with these efforts, more Malaysians will have the opportunity to overcome financial barriers and access a wider range of homeownership options," he said.
During the Budget 2025 tabling, Prime Minister Datuk Seri Anwar Ibrahim said almost RM900 million has been allocated for the implementation of 48 PRR and 14 "Rumah Mesra Rakyat" housing schemes.
Anwar, who is also Finance Minister, said this includes the construction of two new PRR projects in Port Dickson and Seberang Perai Tengah.
"Thirty PRR projects are expected to be completed by the end of 2025, benefiting nearly 17,500 new residents.
"The SJKP has approved RM12.8 billion in government guarantees to over 57,000 first-time homebuyers," he said.
To encourage first-time home ownership, Anwar said the government is proposing a personal tax relief of up to RM7,000 on housing loan interest payments, including tax relief of up to RM7,000 for residential properties priced up to RM500,000. - BERNAMA