The Malaysian Government has announced Budget 2026 on 10 October 2025, with a total expenditure of RM343.1 billion. This is the first budget under the 13th Malaysia Plan and the fourth MADANI Budget, focusing on strengthening the economy, supporting growth, and building resilience for the future.

Here’s a quick breakdown of the key highlights that matter most to property buyers, investors, and real estate agents:

Higher Stamp Duty for Foreign Buyers, starting 1 January 2026, non-citizens (excluding Malaysian permanent residents) and foreign companies will face a higher stamp duty rate — from 4% to 8% — on residential property transfers. This means, there will be more opportunities for local buyers, as the market becomes more favourable for Malaysians. Agents may see stronger local demand and more focus on homegrown investments.

Special Tax Deduction for Renovating or Converting Commercial Buildings into Home. To boost housing availability, the government is encouraging developers and property owners to convert commercial buildings into residential units. Those who do will receive a special 10% tax deduction, up to a maximum of RM10 million in qualifying renovation or conversion costs. Therefore, developers and investors may provide positive responses to old commercial spaces into profitable housing projects.
As an agent there will be new listings and fresh residential inventory from these settings.

Stamp Duty Exemption for First-Time Homebuyers benefits has been extended from the previous 2025 budget announcement. If you’re planning to buy your first home, there’s good news! The stamp duty exemption continues for properties priced up to RM500,000. Buyers will enjoy full exemption on both the instrument of transfer and loan agreement. This incentive which was previously set to end in 2025, is now extended until 31 December 2027. Beneficial for first-time buyers can continue saving thousands in stamp duty costs. Agents can expect steady demand from new buyers entering the market — especially young professionals and families.

Budget 2026 shows the government’s continued support for the  real estate sector . Whether you’re a homebuyer, investor, or agent, these updates open doors for new opportunities and strategic planning in 2026 and beyond. 

If you require any further clarification, you may contact any of PropNex agents for further advice.