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PETALING JAYA: The Association of Valuers, Property Managers, Estate Agents and Property Consultants in the Private Sector Malaysia (PEPS) is urging the government to continue rolling out stimulus packages that target affordable housing in Budget 2026.
The association said these packages should offer tax incentives to developers championing affordable projects and empower low-income homebuyers through subsidies.
This action eases the affordability crisis while revitalising the real estate sector, it added.
“Emphasising the pivotal role of infrastructure, we call for continued investments,“ PEPS said.
Citing an example, it said the buzz surrounding the Kuala Lumpur-Singapore High Speed Rail project exemplifies how transit-oriented developments can invigorate Malaysia’s economy in the short term.
PEPS said the short-term infusion of investment in infrastructure promises not only economic stimulation but also the creation of vibrant, liveable communities that cater to a diverse range of citizens.
It said prioritising connectivity and accessibility enhancements in key property zones, such as expanding public transportation networks and upgrading road infrastructure, will not only attract investors but also fuel economic growth.
“For the long haul, we champion unwavering commitment to sustainable urban planning. This entails enforcing robust environmental regulations and offering enticing incentives for developers embracing green building practices,“ the association said.
This enduring strategy promises lasting rewards, including a reduced environmental footprint and increased appeal to eco-conscious buyers, it added.
“By embracing sustainability as a cornerstone, Malaysia’s property sector can chart a prosperous and environmentally responsible future.
“As eco-consciousness continues to rise among citizens, these developments become more than just a choice; they become a symbol of progress and responsible stewardship,“ PEPS noted.
In terms of government policies and housing, PEPS said there is a call for investor-friendly regulations and streamlined government procedures to attract investment, along with a revival of the Home Ownership Campaign (HOC),
which has proven effective in encouraging homeownership, increasing property sales, and addressing the issue of property overhang.
Affordable housing for locals is also emphasised, with suggestions to reduce compliance costs to improve project feasibility and manage house prices more effectively.
“Additionally, public-private partnerships are seen as a viable solution to revive abandoned projects.The government should also consider revisiting the RPGT (real property gains tax) base year adjustment for tax purposes, and stamp duty waivers are proposed for overhang units to further alleviate the issue of unsold properties,“ the association said.
On the sustainability and environmental, social and governance (ESG) front, PEPS recommends tax incentives for building owners to implement energy-saving measures and ESG initiatives.
It said there is strong support for government efforts to promote sustainable energy use, mitigate climate change, and drive the country’s transition to a low-carbon economy through the adoption of energy-efficient technologies
and renewable energy.
“Property developers incorporating ESG elements into their projects should be incentivised, further aligning the real estate sector with global sustainability goals. Tax incentives should be extended not only to building owners, but also to SMEs that have embarked on the ESG journey, encouraging broader adoption of sustainable practices across different business sizes,“ PEPS said.
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