PETALING JAYA: Introducing the exemption of stamp duties for first home buyers and the “build-then-sell” (BTS) policy are two things property sector stakehol­ders want to see in Budget 2026.

House Buyers Association (HBA) secretary-general Datuk Chang Kim Loong said that it is high time that the government addresses the issue of abandoned projects, which not only affects house buyers but also the banks and the government.

“It’s a very traumatic experience for house buyers to endure after placing their life savings to buy a house, only to discover that it was not completed.

“Even worse is that they will still have to service their bank loans,” he said when contacted yesterday.

He suggested that the government adopt a 10:90 BTS concept as part of its housing policy, as it is a much safer home delivery system.

“The government should, without further delay, compel the hou­sing industry to adopt BTS.

“It would eliminate or drasti­cally reduce cases of housing projects being abandoned,” he said.

Unlike the current situation, he said that under BTS, house buyers place a 10% deposit for houses which have received approval for development and only start paying the remaining 90% once the project is fully completed.

The Star reported that, based on data as of July 31 from the Housing and Local Government Ministry, 97,323 abandoned houses have been reported since 1989, invol­ving 62,017 buyers.

Of these, 69.5% (46,437 buyers) have had their projects revived by the government, 27.7% (13,927 buyers) have their projects in the planning or recovery stage, and 2.7% (1,653 buyers) have had their projects permanently abandoned.

At present, BTS and sell-then-build (STB) coexist, with only 2.6% of development projects delivered through BTS between 2013 and 2016, according to a 2019 report by the Khazanah Research Institute.

Property agent Joshua Soon from Klang suggested that the government exempt first home buyers from paying stamp duty.

“This is what most first-time home buyers ask when looking to buy a home.

“They are usually from the M40 [middle income] looking to save as much as they can when buying a house to start a family,” he said when contacted yesterday.

Depending on the cost of the house, first-time house buyers could save between RM5,000 and RM24,000 if they did not have to pay stamp duty.

Soon added that the stamp duty exemption could also help reduce residential property overhang (when completed properties remain unsold).

“The exemption of stamp duties for first-time home buyers could serve as an incentive for them to buy a residential property, which could help reduce the overhang,” he said.

The Consumers’ Association of Penang raised concerns over property overhang and the continued pursuit of further cons­truction of both residential and commercial buildings.

As of 2024, Malaysia’s residential property market remains under significant strain from a persistent property overhang, with 22,642 unsold completed units nationwide, valued at RM14.24bil.

The majority of the unsold units, close to 60%, comprise condo­miniums and apartments, while terrace houses account for approximately 24.4%.