2027 Budget expected to prioritise homeownership, affordable housing: Apex Securities

KUALA LUMPUR: The 2027 Budget is expected to prioritise homeownership and affordable housing, with the government likely to focus on existing housing policies rather than introducing major reforms, according to Apex Securities.

The research house said support for first-time homebuyers could continue through stamp-duty exemptions, financing assistance under the Housing Credit Guarantee Scheme (SJKP), as well as rent-to-own and shared-ownership schemes.

"The RM20 billion SJKP guarantee ceiling set in the 2027 Budget could be extended to younger Malaysians, the self-employed and buyers who have no fixed or conventional incomes, alongside continued government backing for rent-to-own and shared-ownership schemes," Apex Securities said in its property sector update and the 2027 Budget preview released today.

It said the 2027 Budget should start channelling resources into implementing the National Housing Policy 2026-2035, particularly affordable housing, with the 13th Malaysia Plan's target of one million affordable homes by 2035 remaining as the anchor.

"We expect implementation to focus on additional affordable-housing programmes, greater use of public land and stronger private-sector participation, with supply increasingly calibrated to local affordability and demand," it said.

Meanwhile, Apex Securities said infrastructure projects, particularly the Penang LRT Mutiara Line, could provide longer-term support for property demand, benefiting developers with landbanks along or near the corridor.

It maintained its overweight call on the property sector, with E&O and Paramount as its top picks, with target prices of RM0.97 and RM1.51, respectively.