On October 18, 2024, the MADANI Government announced Malaysia’s ground breaking Budget 2025, titled “Ekonomi MADANI Negara Makmur, Rakyat Sejahtera.”
You can read the summarize Budget 2025 article here!
With a remarkable allocation of RM421 billion, this budget aims to reshape the future, especially in property and housing development.
One of the key features is a strong commitment of RM5.93 billion for housing initiatives, highlighting a major investment in making homes more accessible for all Malaysians.
The budget is built around three essential pillars: Raise the Ceiling, Raise the Floor, and Good Governance and Public Sector.
From attractive benefits for first-time home buyers to tax relief reaching RM7,000, here are the government’s plans for property and home development in 2025.
Budget 2025 Insights: Key Takeaways on Real Estate and Property Projects You Should Know
Affordable Housing
It’s looking good for the real estate focuses! The MADANI Government has allocated a total of RM900 million for 48 People’s Residency Programme (PRR) projects and 14 Mesra Rakyat Housing projects.
This includes two new housing projects in Port Dickson and Seberang Perai Tengah.
By the end of 2025, 30 of these projects are expected to be finished, helping around 17,500 new residents.
The budget also sees an increase of RM90,000 to help build new homes for those in the hardcore poor housing program (PPRT), as well as for fishermen and residents of Chinese new villages.
Meanwhile, UDA Holdings Bhd (UDA) is set to receive RM200 million for the development of affordable housing on wakaf land, and the Public Sector Home Financing Board (LPPSA) will assist civil servants in buying homes on this land.
The government has also announced an increase in the maximum allocation for home repair assistance to RM20,000.
First Time Home-Buyers
If you’re thinking about buying your first home, 2025 could be a great year for it!
The government’s Housing Credit Guarantee Scheme (SJKP) is now backing loans of up to RM500,000 for first-time buyers1 looking to purchase homes on wakaf land.
You can check the full requirement on Housing Credit Guarantee Scheme (SJKP) on their official website.
With RM12.8 billion in government guarantees already approved, more than 57,000 first-time home buyers are set to benefit from this initiative.
Housing Tax Relief
Which leads to the another highlights: First-time home buyers can get up to RM7,000 tax break when buying residential properties that cost up to RM500,000.
If you’re looking at properties priced between RM500,000 to RM750,000, you can claim a tax relief of up to RM5,000.
To qualify for this tax relief, you will need to finalize a home loan agreement from January 1, 2025, to December 31, 2027.
Sejati MADANI
For Budget 2025, the government also plans to set aside RM1 billion next year to support the Sejati MADANI Community Prosperity Project.
While RM100 million will be used to upgrade 48 Madani Public Parks, enhancing recreational spaces across cities and towns.
All States Development
The MADANI government is committed to honouring Sabah and Sarawak by working to bridge the development gap between these two key states.
The focus is on improving essential services like roads, electricity, and clean water to ensure a better quality of life for everyone.
For this, the total public investment for development in 2025 is expected to be at RM120 billion.
When it comes to home repairs, RM200 million is set aside for maintaining low-and medium-cost public strata homes, which includes things like replacing old elevators and sprucing up parks.
Meanwhile, RM84 million is dedicated to improving basic and social facilities in Chinese New Villages, and the Housing and Local Government Ministry will be working to meet the needs of Indian communities as well.
Forest City, Johor Bahru
A new financial entity will be established by the government to fund the construction and redevelopment of Forest City, Johor Bahru.
This initiative aims to enhance the local economy and create a substantial number of job opportunities, especially in the duty-free zone.
At the same time, the National Energy Transition Roadmap (NETR) project will move into the implementation phase2, including the Kenyir Hybrid Hydro Floating Solar Farm and a green hydrogen hub in Terengganu3.
So there, you have it!
With these impactful housing initiatives, we look forward to observing how Budget 2025 may enhance the economy, the real estate market, and other vital sectors, driving progress and development in Malaysia.
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