Kashif Ansari, co-founder and group chief exeucitve officer of Juwai IQI said the RM15,000 savings on an RM750,000 purchase will benefit the homebuyer.

According to him, the housing market will benefit from an increase in demand for homes priced between RM500,000 and RM1 million.

"This measure will reduce the supply overhang, stimulate much-needed new construction, and help many worthy families into their new homes. The new exemption complements the already in-place stamp duty exemption for houses worth up to RM500,000 until the end of 2025," he said.

"We believe the current environment is a good one for homebuyers. Less new supply will come online in 2023 than in recent years, reducing inventory and increasing prices. The economy is relatively stable, and employment is climbing. The government's budget will make it more affordable for many people to purchase their first home. Owning your own home provides a place to live and creates an opportunity to build equity. It is a route to wealth and security," Kashif said.

Two big surprises

There were two significant housing market surprises in the 2023 budget.

Kashif said the government should be applauded for its efforts given the size of the budget and the significant portion of it that will be allocated to initiatives that directly help the people, and the housing sector.

"This is the second largest budget ever, and it's bigger even than last year's budget. Yet, the government's fiscal position will remain relatively strong since the fiscal deficit will likely be only 5.5 per cent of the Gross Domestic Product, which is lower than this year. We welcome the budget measures intended to make housing ownership and purchase more affordable and equitable across all parts of society," he said.

The budget dedicates about RM2.1 billion directly to making housing more affordable and equitable, which accounts for about 2.2 per cent of total spending. The budget's housing provisions include stamp duty exemptions, a housing guarantee for vulnerable workers, and the construction of subsidised new homes for rural residents and others.

There is also the reduction of stamp duty to just RM10 on the transfer of property within families which will help Malaysians build wealth and financial security through property ownership.

"If one generation can pass their property down to the next, a family can create increasing well-being for themselves. Nothing helps you sleep better than knowing that you own your home," Kashif said.

Kashif said the additional RM3 billion for the Housing Guarantee Scheme for gig workers, freelancers, and small businesses/entrepreneurs will enable many more in this category to purchase homes.

"Because people in these careers often have variable incomes from month to month, they can find it hard to obtain a mortgage. If you don't help entrepreneurs to build new businesses, then they won't take the extra risk upon their shoulders.

"By making it easier for entrepreneurs and gig workers to purchase their own homes, we can ensure this dynamic part of our economy continues to grow. The Scheme gives Malaysians working in the gig economy, small enterprises, online businesses, and similar careers a way to buy their first home, worth up to RM400,000, with a 35-year mortgage," he said.

Kashif said that overall, the 2023 Budget is rather comprehensive and narrowly focused on crucial objectives, namely the welfare of Malaysians and ensuring that they have equitable and affordable access to housing.

"In many ways, 2023 will be a challenging year, with the lingering effects of Covid-19, the global economic uncertainty due to inflation and high rates in many countries. Further, the pressures of the Russian war are imposing on supply chain and commodity costs. We wouldn't say the government has missed anything in this budget."