Rahim & Co senior director urges safeguards so Budget 2027 affordable homes reach genuine buyers
Siva Shanker of Rahim & Co Chestertons welcomed Budget 2027's stamp duty relief and government land for affordable housing, but stressed the need for safeguards to ensure subsidised homes go to genuine owner-occupiers, not investors. He called for screening, occupancy requirements, and anti-flipping
PETALING JAYA (Oct 9): Budget 2027's proposed stamp duty relief and plans to develop government land for affordable housing are welcome measures, but effective safeguards are needed to ensure subsidised homes reach genuine owner-occupiers, said Siva Shanker, senior director of real estate agency at Rahim & Co Chestertons.
In an interview with EdgeProp following the Budget announcement, Siva said housing assistance should address both the upfront cost of buying a home and the availability of suitably located housing. Equally important, he said, was preventing subsidised units from becoming vehicles for rental income or speculative resale. “We must find a way to make sure that this kind of subsidised housing, in whichever way it's subsidised, must reach the hands of the correct end user,” he said.
Siva welcomed the proposed stamp duty exemptions, saying they would help buyers who could afford monthly loan repayments but lacked the capital needed to meet upfront purchase costs. According to EdgeProp, Prime Minister and Finance Minister Datuk Seri Anwar Ibrahim proposed full stamp duty exemptions on loan agreements and instruments of transfer for first homes priced up to RM500,000. For first homes priced above RM500,000 and up to RM750,000, the proposal provides a full exemption on the first RM500,000 and a 50 per cent exemption on the remaining portion, applying to sale and purchase agreements executed from Jan 1, 2027 to Dec 31, 2030.
Siva also supported credit guarantee schemes that could help buyers obtain financing. Budget 2027 provides up to RM20 billion in housing financing guarantees through SJKP to assist 80,000 first-time homebuyers, particularly self-employed individuals without fixed incomes, Bernama reported.
Making government land available for affordable housing could help reduce a major component of development costs, Siva said. Under Budget 2027, nearly 11 acres of government land in Belfield, Kuala Lumpur, are earmarked for at least 2,500 Rumah MADANI units, with 70 per cent allocated to Bumiputera buyers. Siva welcomed the proposed location, saying housing close to the city could give residents better access to workplaces, schools and amenities. However, he stressed that developments also needed suitable housing products and appropriate pricing.
The National Property Information Centre's (NAPIC) Property Market Status Report H1 2026 recorded 33,094 completed unsold residential units worth RM17.78 billion. Homes priced RM300,000 and below accounted for 12,340 units, or 37.3 per cent, the largest price segment of the residential overhang. Siva attributed weak take-up in some affordable housing projects to a mismatch between product, location and pricing.
Beyond increasing supply, Siva called for three safeguards: proper applicant screening so that units reach eligible households; requiring buyers to occupy the homes instead of immediately renting them out; and preventing buyers from quickly reselling subsidised units for a profit and subsequently seeking further housing assistance. “State money is everybody's money,” he said.
