The various initiatives rolled out by the government through Economic Recovery Plan (ERP) -PENJANA could help revitalise Malaysia’s property market as well as meet the housing needs of the people, particularly the youth.
The initiatives include the home ownership campaign (HOC) 2020, where house buyers can enjoy stamp duty exemption and at least 10% discount on their property acquisition, reported Bernama citing the Ministry of Housing and Local Government.
The exemption on real property gains tax (RPGT), which is levied on profit from the sale of property, as well as the current tax reduction could also stimulate the housing market.
“The RPGT exemption is given to Malaysian citizens upon disposal of residential property, limited to three houses per individual, from 1 June 2020 until 31 December 2021,” Bernama quoted the Ministry as saying in a written reply to Datuk Seri Mahdzir Khalid (BN-Padang Terap) query at the Dewan Rakyat.
He was asking about the Ministry’s efforts to address the lack of affordable housing to meet the needs of the people, especially the youth. He also asked how the Covid-19 pandemic affected market prices.
The Ministry added that the financing limit for the third and subsequent residential property loans worth RM600,000 is no longer subject to 70% value of the house under PENJANA, but to the internal risk management of the financial institution.
The Ministry, however, noted that it does not have the precise information on the Covid-19’s effect on home prices at the moment.
The Advertising Permit and Developer’s Licence registration record showed that developer application trend remains the same as last year, it said.
However, residential property transactions declined 19% year-on-year to 47,000, with new licence applications totalling 263 in the first quarter of 2020 from 256 over the same period last year. Licence renewal also increased to 603 in Q1 2020 from 465 last year.
The reduction came as developers were unable to carry out sales campaigns, while buyers were cautious in making financial commitments.