The government's recent announcement of a stamp duty waiver will have little impact on the overall property market.
According to RHB Research analysts, ongoing market headwinds such as rising inflationary pressure and ringgit weakness have continued to dampen market sentiment.
"Although the recent announcement may help to slightly boost demand, particularly for properties priced below RM500,000, the overall impact on the property market will be minimal.
"We believe that current concerns about macroeconomic headwinds, such as rising inflation and a weakening ringgit, will dampen demand for property over the next six months.
The firm noted that some developers were still offering stamp duty waivers for specific products as part of the Home Ownership Campaign.
From June 1, 2022 to December 20, 2023, Prime Minister Datuk Seri Ismail Sabri Yaakob announced a 100 percent stamp duty exemption for first-time homeowners of properties priced RM500,000 and below through the Keluarga Malaysia Home Ownership Initiative (i-MILIKI).
Meanwhile, he stated that a stamp duty exemption incentive of 50% will be given for homes priced between RM500,000 and RM1 million.
Although the stamp duty exemption would reduce revenue for the nation's coffers, Ismail Sabri stressed that the move demonstrated the government's commitment to Keluarga Malaysia (the Malaysian Family).
He stated that the government was taking various measures to enable Malaysians to own homes, such as exempting property ownership transfers and loan agreements from stamp duty tax.