Target of 500,000 affordable homes at 89% as of September, Parliament told

• “There has been an 8% increase in the number of transactions this year, involving 198,906 property units, with a total value rise of 23.8% to RM105.65 billion compared to 2023.”

KUALA LUMPUR (Oct 22): The government has reached 89% of the target for the construction of 500,000 affordable homes, with 443,259 units completed, under construction, or planned across the country as of September.

The Ministry of Housing and Local Government said that the remaining 56,741 affordable housing units are expected to be completed by the end of the 12th Malaysia Plan.

“Based on data from the National Property Information Centre, there was a significant increase in property management activities in the first half of 2024 compared to 2023.

“There has been an 8% increase in the number of transactions this year, involving 198,906 property units, with a total value rise of 23.8% to RM105.65 billion compared to 2023,” said the ministry in a written reply to a question from Datuk Iskandar Dzulkarnain Abdul Khalid (Perikatan Nasional-Kuala Kangsar) on the Parliament website.

Taking into account the encouraging performance of the Malaysian Home Ownership Initiative (i-Miliki) that ended in December last year, the ministry has requested the government's consideration to continue the initiative, so that more buyers, especially those in the bottom 40% and middle 40% income groups, can benefit.

“According to reports from the Inland Revenue Board, as of Dec 31, 2023, a total of 8,723 claims for stamp duty exemption worth RM38,373,796.52 were recorded,” it said.

The ministry also informed that the government continues to implement the Home Ownership Campaign 2.0 from Jan 1, 2021 to Dec 31, 2025, which offers stamp duty exemptions for instruments of transfer and loan agreements for new homes or secondary market properties valued at RM500,000 and below.

It added that Budget 2025 allocates additional incentives to encourage first-time homeownership, including individual tax relief for housing loan interest payments, which amounts to tax relief of up to RM7,000 for residential properties priced up to RM500,000, and tax relief of up to RM5,000 for homes priced between RM500,000 and RM750,000.

“This relief can be claimed for three consecutive years of assessment for sale and purchase agreements completed between Jan 1, 2025 and Dec 31, 2027,” it said.

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