Support first-time buyers

Down-payment aid and duty relief could open more doors to home ownership

KUCHING: Down-payment assistance for first-time buyers, wider stamp duty relief and measures to curb construction costs are among proposals SHEDA hopes to see in Budget 2027 to make homes more attainable in Sarawak.

Sarawak Housing and Real Estate Developers’ Association (SHEDA) president Datuk Augustine Wong said affordability needed to be addressed from both the buyer and housing supply sides.

“For many Sarawakians, owning a home remains an important aspiration,” he told Sarawak Tribune.

On the buyer side, Wong said first-time homeowners generally faced three major hurdles: raising the initial 10 per cent down payment, securing suitable financing and meeting transaction costs.

He proposed targeted financial assistance towards the down payment, saying the Government would not necessarily have to cover the full amount.

“Even partial assistance could help ease the burden on households that are able to manage the monthly loan commitment but face difficulty accumulating the initial cash required,” he said.

Wong also proposed extending the first-home stamp duty exemption to eligible serviced apartments priced at RM500,000 and below.

“This could give first-time buyers greater housing options, particularly in urban areas.”

The PPAM price threshold could meanwhile be raised to RM450,000 to keep pace with higher house prices, he said.

“As house prices have risen over the years, the existing threshold may cover a smaller range of homes available in the market,” he said.

Wong hoped existing measures such as the Housing Credit Guarantee Scheme (SJKP), the first-home stamp duty exemption and the Malaysian Civil Servants Housing Programme (PPAM) would continue under Budget 2027.

“SJKP has helped improve access to housing financing, while the first-home stamp duty exemption has reduced transaction costs for eligible buyers,” he said.

“PPAM has also provided an avenue for eligible public-sector employees to access more affordable housing.”

On the supply side, Wong said rising material prices, diesel costs and compliance expenses were increasing the cost of delivering homes in Sarawak.

“When these costs are stacked on top of each other, they can place upward pressure on the cost of new homes and make it more difficult to deliver homes within the price range that ordinary households can afford,” he said.

He proposed targeted relief to cushion residential construction from recent fuel price increases, including the possible reintroduction of diesel subsidies for construction-related vehicles and equipment.

“This would help moderate the additional costs faced by developers and contractors in delivering new homes,” he said.

Wong also hoped the Federal Government would review compliance-related costs, particularly ad valorem stamp duty imposed on Joint Development Agreements and Powers of Attorney.

“A review of the applicable duties could help reduce the compliance cost burden to a certain extent,” he said.

“Together with measures to address fuel-related cost pressures, such steps can help contain the overall cost of delivering new homes and support the provision of homes at more attainable prices.”

Wong said a combination of buyer assistance and measures to contain development costs would provide a more balanced response to housing affordability.

“Budget 2027 can strike a balance between lowering the barriers to home ownership and lowering the cost of delivering new homes,” he said.

“Both are necessary to make housing more attainable for Sarawakians and to ensure that homes can continue to be delivered at prices households can realistically afford.”

He hoped the measures would help more Sarawakians move “from aspiring homeowners to actual homeowners”.