BUDGET 2021 is a boon for the property market, especially those looking to purchase their first homes.
In a statement, the National House Buyers Association (HBA) said it welcomed the Government’s move to allocate RM1.2 bil to build comfortable homes for the lower income group.
“While we acknowledge the challenges faced by the Government due to the pandemic, the decision to build homes for the lower income group is most welcome.
“This is a noble aspiration to ensure that all Malaysians, including the lower income segment, have access to comfortable and quality housing,” said its honorary secretary-general Datuk Chang Kim Loong.
Yesterday, Finance Minister Tengku Zafrul Abdul Aziz tabled Budget 2021 at the Dewan Rakyat, worth RM322.54 bil.
The expansive budget was an addition to the six stimulus packages worth over RM300 bil announced this year, aimed at reviving the economy and push assistance towards those affected by the COVID-19 pandemic.
For the property sector, the Government had also announced a full stamp duty exemption for the Memorandum of Transfer (MOT) and loan agreements (LA) for first time house buyers, until Dec 31, 2025.
Chang said the stamp duty exemption was a positive move as it will help first time buyers to own a property.
“This is a good proposal as it is restricted to first time buyers, offering stamp duty savings between RM9,000 and RM2,250 on the LA (assuming a 90% financing).
“This will help them to own a home, irrespective whether from housing developers or the secondary market,” he said.
Chang added he also supported the Government’s move to offer stamp duty exemptions to original buyers of an abandoned projects, when ‘white knight’ contractors take up the task to complete the projects.
“We support this proposal as the buyers are victims of unscrupulous people. It is not their fault when the Housing Ministry failed to monitor and enforce rules on errant developers.
“The exemption to a certain extent will reduce the burden of the original buyers,” he said.
On the rent-to-own (RTO) programme, Chang reiterated his association’s stand the policy should be extended to the M40 group as well.
However, he also said the programme should not cover houses that worth up to RM500,000, adding it should be between the RM150,000 to RM300,000 threshold.
“This figure is the developers’ qualification of ‘affordable housing” and is on the high side, compared to the official definition by the Housing Ministry,” he added.
PropertyGuru Malaysia also lauded Budget 2021, especially the stamp duty exemption, saying it would help first time house buyers.
“Based on our survey, 81% of Malaysians plan to buy a home by end of next year. Home seekers aged between 22 and 29 years are most likely to buy a house after the movement control order (MCO) ends,” said its country manager Sheldon Fernandez.
He added that it was commendable the Government was planning to build more quality housing for the low-income group in Malaysia.
“However, it is imperative to build the homes in the right locations to ease the overhang experienced by the market now.
“The National Property Information Centre (NAPIC) revealed the Malaysian property overhang climbed by 3.3%, with houses priced between RM200,000-RM300,000 being affected,” said Fernandez.
Leading property consultancy firm, Knight Frank Malaysia said the stamp duty exemption was a great move to allow potential buyers to have better options in choosing the property they require.
“It complements the Real Property Gains Tax (RPGT) exemption unveiled under the country’s Short-Term Economic Recovery Plan (Penjana) in June, where gains from disposing of residential property by Malaysians (up to three units per individual), between June 2020 and Dec 2021 are exempted.
“Collectively, these incentives are expected to spur activities in the primary and secondary residential markets, supported by the current low interest rate environment,” said its managing director S Sarkunan.
He added, “The move will also allow property developers to improve on their products to realise long term benefits.” – Nov 7, 2020
