PETALING JAYA (Jan 31): The stamp duties on property sales and purchase agreements (SPA) for properties priced up to RM1 million and for loan agreements of up to RM2.5 million that come under the National Home Ownership Campaign 2019 (HOC 2019) will be waived, Finance Minister Lim Guan Eng announced today.
Previously, the stamp duty on SPA for the first RM100,000 of the property price was 1%, RM100,001 to RM500,000 was 2% and RM500,001 to RM1 million was 3%. For properties priced at RM1,000,001 to RM2.5 million, the S&P stamp duty will remain at 3%.
Meanwhile, the stamp duty for loan agreement of properties priced below RM2.5 million was 0.5% previously.
“For example, if someone bought a home priced at RM500,000, he or she will not need to pay SPA and loan agreement stamp duty taxes at all. If someone bought a property of RM1.5 million, the buyer will need to pay 3% on the remaining amount after RM1 million but he or she will not need to pay any stamp duty tax for the loan agreement,” Lim said during a press conference on HOC-MAPEX 2019 today.
He said the stamp duty waivers are applicable for unsold properties that have been completed or under construction during the six month-HOC 2019 period from Jan 1, 2019 to June 30. It is only applicable for properties registered with the Real Estate and Housing Developers’ Association (Rehda) under HOC 2019.
He added the “promotion” is not applicable for price-controlled properties (RM300,000 and below) as this category of properties are already tax exempted.
In conjunction with HOC 2019, Rehda is partnering the Ministry of Housing and Local Government to organise a property expo at the Kuala Lumpur Convention Centre from March 1 to 3, 2019.
Projects participating in the HOC 2019 will be offering at least 10% discount on the property selling price.
“Rehda will verify to ensure all the properties under HOC are at least 10% discounted. We welcome Rehda members and non-members to register themselves. Rehda will request for a project licence to confirm the approved selling price and hence ensure the discount,” said Rehda president Datuk Soam Heng Choon.
According to HOC-MAPEX 2019 organising chairman Datuk N K Tong, the exhibition will see some 180 booths offering RM5 billion worth of properties. Besides developers, he also welcomes financial institutions to take part in the expo.
“We hope with this campaign, we can help to clear the existing stock of residential properties nationwide. The more the merrier. I will not think HOC is the only solution to solve the current overhang but this is one of the solutions that the government is offering right now. We will see if we need more later,” he said.