Budget 2027 and Malaysian Property: What Changes for Buyers, Owners and Investors

Budget 2027's main change for home buyers is a wider first-home stamp duty exemption. It applies to SPAs signed from 1 January 2027 to 31 December 2030. Homes up to RM500,000 stay fully exempt, and on homes up to RM750,000 the first RM500,000 is exempt and the rest gets 50% off. The Budget also adds up to RM20 billion in housing-loan guarantees. It is still a proposal until the Finance Bill passes (as of October 2026).

Prime Minister Anwar Ibrahim tabled the Budget in Parliament on 9 October 2026. Below is what changes, what doesn't, and what it means if you are buying, selling or investing in Kuala Lumpur.

What property measures are in Budget 2027?

Sources: Bernama, EY Budget 2027 summary, Malay Mail, EdgeProp (as of October 2026).

How much does the new first-home exemption save?

On the transfer (MOT) alone, a first-time buyer saves RM10,500 to RM12,750 on a home priced RM600,000 to RM750,000. Today those buyers get nothing. The figures below use the standard citizen MOT rates (1% / 2% / 3% / 4%) and apply the 50% to the duty on the portion above RM500,000, as announced.

The loan agreement (0.5% of the loan) is also covered. Up to RM500,000 it is fully exempt. For RM500,001–RM750,000, how the 50% applies to the loan will depend on the final stamp duty order, so ask your lawyer. You can run any price through our stamp duty and legal fee calculator, and our stamp duty and legal fees guide explains every fee.

Who qualifies?

The current exemption is for Malaysian citizens buying their first residential home (as of October 2026, Bernama), and EY's summary describes the new one the same way. Permanent residents and foreigners are not included. Your lawyer will ask you to declare that you have never owned a home before.

Should first-time buyers wait until 2027 to sign?

If your first home costs between RM500,001 and RM750,000, timing matters. An SPA signed in 2026 gets no exemption at that price, but an SPA signed from 1 January 2027 would, once the proposal becomes law. On a RM650,000 home, that is about RM11,250 on the MOT alone.

Homes up to RM500,000 are already exempt for SPAs signed until 31 December 2027, so there's no reason to wait. Either way, confirm with your lawyer before you book, because the booking form is not the SPA, and the final rules can still change.

What doesn't change?

• Foreign buyers: none of the Budget summaries we reviewed announced new foreign-buyer rules. Foreigners still pay a flat 8% stamp duty on the transfer from 1 January 2026, and KL's RM1 million minimum price for foreigners still applies. See buying a KL condo as a foreigner.
• RPGT: EY's summary lists no change to real property gains tax. If you are selling, our guide to selling a condo in KL covers the current rates.
• Most Mont Kiara, KLCC and Damansara Heights condos: many are priced above RM750,000, so the new exemption won't apply. The measures that matter there are lower income tax and steady loan rates; see current bank rates on /tools.

What does it mean for the KL market?

For buyers under RM750,000 it is a direct saving. For the wider market, it is support rather than a push. The RM20 billion SJKP guarantee should help self-employed buyers who struggle to get a loan. Bandar MADANI Bukit Jalil adds new supply in the south of KL. Higher-end condos in Mont Kiara and KLCC will move on rents, interest rates and supply as before, which our KL property market 2026 post tracks.

If you are a first-time buyer, look at units priced up to RM750,000. Pick the "Under RM 1M / rentals" price band on our property listings, or compare areas such as Mont Kiara and Desa ParkCity.

FAQ

Is the Budget 2027 stamp duty exemption already in force?

Not yet. It is a Budget proposal for SPAs signed from 1 January 2027 to 31 December 2030, and it becomes law through the Finance Bill and a stamp duty exemption order (as of October 2026).

Can foreigners get the first-home stamp duty exemption?

No. It is for Malaysian citizens buying their first home. Foreign buyers pay a flat 8% stamp duty on the transfer from 2026.

Did Budget 2027 change RPGT?

No change to real property gains tax was listed in EY's Budget 2027 summary (as of October 2026).

Want to know whether a unit you're looking at qualifies? WhatsApp Jerry or Fiona below.