If you're a first-time buyer looking at a Penang home between RM500,000 and RM750,000, the most valuable thing you can do this quarter might be to wait until January.
Budget 2027, tabled on 9 October 2026, proposes to extend stamp duty relief for first homes up to RM750,000, for sale and purchase agreements (SPAs) signed from 1 January 2027. Today's exemption stops at RM500,000. So a RM650,000 home signed in December pays about RM11,000 more in stamp duty than the same home signed in January.
Key takeaways:
- Up to RM500,000: full stamp duty exemption on the transfer and the loan agreement, as today.
- RM500,001 to RM750,000: full exemption on the first RM500,000 and 50% off the rest. This part is new.
- Timing: for SPAs signed 1 January 2027 to 31 December 2030. It's a proposal until the exemption order is gazetted.
- Who: first-time buyers. Earlier first-home exemptions were for Malaysian citizens who had never owned a home. Foreign buyers still pay 8%.
- Where in Penang: most new launches under RM750,000 are on the mainland, but the island has a handful too.
What exactly changed
Since 2021, a Malaysian buying a first home priced up to RM500,000 has paid no stamp duty on the transfer document or the loan agreement. Budget 2026 extended that to the end of 2027.
Budget 2027 keeps that and adds a second band. For a first home priced above RM500,000 and up to RM750,000, the first RM500,000 is fully exempt and the remainder gets a 50% exemption, according to EdgeProp's and the New Straits Times' reports of the Budget on 9–10 October 2026. Both bands apply to SPAs signed from 1 January 2027 to 31 December 2030.
Two things are not settled yet. The details will be written into a stamp duty exemption order, which sets the exact conditions. And the Budget is a proposal until it passes. Treat every figure here as "as announced" until your lawyer confirms the gazetted version.
What you actually save
Stamp duty on the transfer document runs 1% on the first RM100,000, 2% up to RM500,000, 3% up to RM1 million and 4% above that.
| Price | Normal stamp duty on transfer | Under Budget 2027 | You save |
|---|---|---|---|
| RM480,000 | RM8,600 | RM0 | RM8,600 (already exempt today) |
| RM650,000 | RM13,500 | RM2,250 | RM11,250 |
| RM750,000 | RM16,500 | RM3,750 | RM12,750 |
The loan agreement is covered too. It's normally stamped at 0.5% of the loan, so a 90% loan on a RM650,000 home carries about RM2,925 of stamp duty before the exemption. How the 50% band applies to the loan agreement will be spelled out in the order.
These are my calculations from the published rates and the announced exemption. Your lawyer's final figures may differ slightly depending on how the order is worded.
The decision: sign now or in January?
If your home costs RM500,000 or less, don't wait. You're already exempt under the current scheme until the end of 2027, so delaying gains you nothing and risks losing the unit.
If your home costs between RM500,001 and RM750,000, waiting until January is worth about RM11,000 to RM13,000 on the transfer alone. Ask the developer whether you can book now and sign the SPA in January. Many developers allow a booking period, and some will hold a unit if you explain why. Don't let the saving cost you the right unit, though: a better floor or layout can be worth more than RM11,000 at resale.
If you're above RM750,000, nothing changes for you.
Where to find first homes under RM750,000 in Penang
On my tracked project list, Penang has around 60 new launches starting at RM750,000 or less, and about 90 completed developments whose cheapest units are in that range. Most of the new ones are on the mainland.
Island, open market, from about RM500,000 to RM750,000:
- D' Starlingtton, Teluk Kumbar, from about RM508,000
- M Zenni, Batu Maung, from about RM530,800
- Lucerne Residences, Bayan Lepas, from about RM599,000
- Central Residence, Jelutong, from about RM650,000
- Eight & Eight, Tanjung Tokong, from about RM691,000 (leasehold)
- SENZE @ PICC, Bayan Lepas, from about RM705,000
Mainland landed homes under RM750,000, where the new band matters most:
- Taman Seri Bedu, Tasek Gelugor, from about RM532,000
- Majestic Aman, Butterworth, from about RM585,000
- Serene Villas @ Sunway Wellesley, Bukit Mertajam, from about RM680,000
- Taman Bistari Jaya, Nibong Tebal, from about RM734,000
Mainland condos and serviced residences from RM500,000 to RM750,000 include Irama D' Eco Sun, Mezon @ Park Enclave and Pavilion Residence. The full list is on the mainland new launches page, and my shortlist is in the best new launches under RM700,000. If this is your first purchase, the first-time buyer guide walks through the rest of the costs.
One caution. Several of these are serviced apartments on commercial title. Earlier first-home exemptions were written for residential property, so ask your lawyer whether a commercial-title serviced apartment counts before you rely on the saving.
State affordable-housing homes, such as Rumah MutiaraKu projects, are mostly priced under RM500,000 and have their own eligibility rules. The exemption sits on top of those rules; it doesn't replace them.
What about foreign buyers?
Nothing changes. The exemption is for first-time homebuyers, and foreign buyers in Malaysia pay a flat 8% stamp duty on the transfer, introduced from 1 January 2026. The industry asked the government to revisit the 8% rate, but Budget 2027 didn't touch it. For the full cost picture, see the foreign buyer guide.
What this means if you're buying in Penang
The new band lands right where Penang's mainland family homes are priced. A new terrace in Tasek Gelugor or Nibong Tebal, or a three-bedroom condo in Batu Kawan, now costs a first-time buyer a few thousand ringgit less to complete, provided the SPA is signed in 2027 or later.
It also gives you some leverage. Developers with units in the RM500,000 to RM750,000 range know buyers may hold off until January. Use that: ask what they'll do to secure your booking now.
Zac’s Take
Zac Ong
If you're a first-time buyer between RM500,000 and RM750,000, the January date is worth about RM11,000 to RM13,000, so book if you must, but sign the SPA in 2027. Under RM500,000, don't wait: you're already covered. And if the home is a serviced apartment on commercial title, get your lawyer to confirm it qualifies before you count the saving.
Send me the project, unit and price you're looking at, and I'll tell you whether it's likely to fall in the new band and how to time the booking.
Sources: Budget 2027 housing measures as reported by EdgeProp (10 October 2026) and the New Straits Times (9 October 2026); existing first-home exemption and its extension to 31 December 2027 under Budget 2026; stamp duty scale for transfer instruments under the Stamp Act 1949. Savings are my own calculations from those rates. The project list is from my tracked project data in October 2026; prices change, so check the current price of the unit you want.
Disclaimer: This is general information, not legal or tax advice. Budget measures are proposals until legislated and gazetted, and eligibility depends on the final exemption order and your own circumstances. Confirm with your lawyer before signing.