Budget 2027 is expected to maintain policy continuity for Malaysia’s property sector, with the government’s focus shifting increasingly towards funding and implementation rather than introducing major new reforms, according to Apex Research, as reported by The Star.

The research firm said existing home ownership incentives and the expansion of the Skim Jaminan Kredit Perumahan guarantee should continue supporting property transactions, particularly among affordable housing buyers and first-time homeowners.

Apex Research also viewed the National Housing Policy’s move towards locality-based affordability pricing as a sensible adjustment. It said the approach could help address the mismatch between housing supply and actual demand that has affected parts of the property market in previous cycles.

However, the proposed transition towards a build-then-sell (BTS) model remains an area to watch closely. Apex Research said a gradual transition supported by appropriate financing measures would be manageable for larger, better-capitalised developers. However, accelerating the transition without corresponding relief could place greater pressure on small and mid-sized developers that depend heavily on progressive billing.

Such an adjustment could potentially affect property launch volumes in 2027 and 2028, it said.

A property analyst quoted by The Star also remained positive on the sector, expecting Budget 2027 to include measures that would provide continued support for the industry.

Penang Property Outlook

For Penang, Apex Research highlighted developers with substantial landbanks along or near the Mutiara Line corridor, noting that transit-oriented development could provide a longer-term boost to land values as connectivity improves.

E&O Bhd was identified as having a sizeable, longer-term exposure through its waterfront landbank at Seri Tanjung Pinang and Andaman Island. Kerjaya Prospek Group Bhd, meanwhile, could see a more direct uplift from its property exposure closer to the planned transit corridor.

Paramount Corp Bhd’s Penang exposure was considered comparatively smaller, making it a secondary beneficiary of the broader trend.

Apex Research said Penang’s property outlook could continue to strengthen through 2027, with the Mutiara Line rail rollout expected to be a key catalyst independent of Budget 2027.

The research firm also expects a possible revision to the current RM1,700 minimum wage, potentially to between RM1,700 and RM2,000. For property developers, the more significant impact could come indirectly through higher construction costs, as increased contractor labour expenses feed into tender prices and project costs, potentially putting pressure on margins for fixed-price construction contracts.