Industry stakeholders laud the removal of RPGT for property sales from sixth year onwards

PETALING JAYA (Oct 29): The announcement of the removal of Real property Gains Tax (RPGT) for house sales from sixth year onwards is the biggest good news for real estate industry and many anticipated this will spur the market transactions.

Read other Budget 2022 news on EdgeProp.my/Budget2022  

Real Estate and Housing Developers’ Association Malaysia (REHDA) president Datuk Soam Heng Choon

“Under the current soft market conditions, we welcome the government’s move for the removal of the real property gains tax (RPGT) for properties sold on the sixth year onwards.

We hope that this measure will help invigorate our property market to make it more resilient and eventually translate into a positive multiplier effect on the economy.

As the nation slowly mends itself from the pandemic, we hope that this expansionary Budget will benefit all sectors of the economy and pave the way for national recovery and growth.”

RHB Research Institute senior analyst Loong Kok Wen

“The proposed waiver of the real property gains tax (RPGT) on property owners who sell their properties after the sixth year is a good step but may not be enough to stimulate the property market as a whole.

The government may likely announce the extension of the Home Ownership Campaign come December, hopefully they do.”

KGV International Property Consultants (Johor) Sdn Bhd executive director Samuel Tan

"Apart from the abolishment of the RPGT for properties held from the sixth year onwards, there was hardly any good news for the property market. [RPGT abolishment] is a long-awaited measure as many see [RPGT] as an unjust way to penalise long-term property owners based on inflation.

With the abolishment, it is hoped that property owners will be motivated to upgrade to their desired homes without any tax penalty. It would be better if the RPGT rates are reduced progressively for transactions of properties below five years to inject some vibrancy to the property market."

S P Setia Bhd CEO Datuk Choong Kai Wai

"While six years' holding is relatively long, we hope that it will help spur the sub-sale market and will indirectly help invigorate the supply chain and rejuvenate the property industry.”

Mah Sing Group founder and group managing director Tan Sri Leong Hoy Kum

“We commend the government’s extensive effort in considering every level of the property industry including the secondary market. The RPGT waiver for property disposed from the sixth year onwards is expected to stimulate more interest in the secondary market. This would also boost the overall property market’s sentiment as buyers could look to upgrade their homes after selling their older units.

This is a timely catalyst in expediting the recovery of the property industry in line with the general consensus of expecting 2022 to be a better year for Malaysia.”

CBRE | WTW group managing director Foo Gee Jen

“The allocation for low-cost housing and the Real Property Gains Tax (RPGT) abolishment for property sales from the sixth year will benefit the low-income earners and encourage more home upgraders respectively.

The home upgraders can sell their [current] properties without worrying of being taxed.”

Reapfield Properties Group COO Jonathan Lee

“Other than the Real Property Gains Tax (RPGT) exemption on properties sold after the sixth year, there is no exciting measure that can spur market buying interest. Although RPGT can motivate the seller to sell, there is nothing to motivate the buyer to buy.”

Get the latest news @ www.EdgeProp.my

Subscribe to our Telegram channel for the latest stories and updates 

Click here for more property stories