Budget 2019: Putrajaya’s property market measures

PETALING JAYA (Nov 2):  The government has announced several measures in Budget 2019 aimed at raising homeownership among Malaysians.

The proposals are:
• Two-year stamp duty exemption for first RM300,000 for houses priced up to RM500,000
• Six-month stamp duty exemption for first-time buyers of houses priced between RM300,000 and RM1 million
•  Real Estate and Housing Developers' Association Malaysia (Rehda) agrees to reduce house prices as much as 10% for houses which are not subject to price control for new projects. This is following SST exemption on construction materials
• Government to spend RM1.5 billion on affordable housing. To help those earning no more than RM2,300, a fund will be set up by Bank Negara Malaysia for homes up to RM150,000 at interest rate of 3.5% through selected banks
• For first-time homebuyers who want to purchase RM500,000 property, the government will waive stamp duty of SPA and loan agreement for two years till end-2020
• For first-time homebuyers with household income of RM5,000, the government will allocate RM25 million to Cagamas Bhd for mortgage support and help homebuyers pay deposit. Cost savings of between 7% and 11% to homebuyers
• The government will allow property crowdfunding platforms which will be led by the private sector as an alternative for first homebuyers.

Other real-estate related proposals are:
• Stamp duties for property transfers worth more than RM1 million will be raised from 3%  to 4%
• Real property gains tax will be imposed on property sales, sixth years onwards, 10% to companies and foreigners and 5%  for local. However, no RPGT for low cost, middle cost and affordable housing scheme houses priced at RM200,000 and below
• Creation of an Airport Real Estate Investment Trust (REIT), by raising RM4 billion. The REIT is first in the world.

Looking for properties to buy or rent? With >150,000 exclusive listings, including undervalued properties, from vetted Pro Agents, you can now easily find the right property on Malaysia's leading property portal EdgeProp! You can also get free past transacted data and use our proprietary Edge Reference Price tool, to make an informed purchase.
  1. Workers remain in dire straits despite salary increase last year — MTUC
  2. BNM unlikely to cut OPR until year end should recovery gain strength
  3. BNM maintains OPR at 1.75% as global economy continues to improve