Henry Butcher Malaysia: Limited goodies for the property sector in Budget 2025

• Biggest beneficiaries of are the education/higher education sectors followed by the health sector

KUALA LUMPUR (Oct 25): The biggest beneficiaries of Budget 2025 are the education/higher education sectors followed by the health sector, while the property sector “was not accorded the same priority and there were not that many goodies to cheer up the market”, stated Henry Butcher Malaysia.

At RM421 billion, Budget 2025 is the largest in Malaysia’s history and topped 2024’s RM407.5 billion by 3.3%.

“Although Budget 2025 largely did not adopt the proposals submitted by the developers in the pre-budget discussions, the property sector is still expected to benefit and grow from the government’s anticipated higher economic growth,” opined the company.

“First-time home buyers and those in the B40 group will be the main beneficiaries whilst the M40 did not receive the same level of attention,” it added.

Of note is that individual tax relief on housing loan interest will be granted to encourage Malaysians to buy their first home. The tax relief will apply to sale and purchase agreements signed between Jan 1, 2025 and Dec 31, 2027 and must be the tax payer’s first residential home loan.

Up to RM900 million will be allocated for public housing projects under the People's Residency Programme (PRR) & Rumah Mesra Rakyat (RMR).

“The infrastructure projects announced will also benefit residents in the surrounding areas and contribute to enhancing demand and property values in these areas,” said Henry Butcher Malaysia.

Putrajaya stated that priority should be on essential infrastructure projects, such as Pan Borneo Highway; airport expansion in Penang, Tawau & Miri; Sabah-Sarawak Link Road Phase 2; and Penang LRT.

“The higher allocations for tourism will help attract more inbound tourists and this shall help raise hotel occupancies & rates, and enhance the values of hotels and tourism related properties.

“Malls and shopping areas will also benefit from the anticipated increase in tourist arrivals & spending and this will spur footfalls and possibly improve or at least maintain decent occupancy,” said the asset consultant company.

“The establishment of the JS-SEZ will boost Johor’s economy and Forest City in particular could lead to improved occupancy rates of the completed residential and commercial properties, and speed up development of further phases of the project.

“The significant allocations to Sabah and Sarawak will provide a boost to the economies there, ultimately improving the wealth and sentiments of the East Malaysians with hopes of a cascading effect to boost the property market,” it added.

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