PETALING JAYA (June 5): The Penjana Short-term Economic Recovery Plan announced by Prime Minister Tan Sri Muhyiddin Yassin today will provide financial relief to targeted groups of people in the country.
“It needs to be done. Measures such as wage subsidies and those for the tourism industry will be able to further stimulate the economy in the short term,” said CBRE|WTW managing director Foo Gee Jen.
Under Penjana, the three measures to stimulate the property sector announced include the reintroduction of the Home Ownership Campaign (HOC) offering stamp duty waivers on instruments of transfer and on loan agreements for Sales and Purchase Agreements signed from June 1, 2020 to May 31, 2021 for the purchase of residential homes priced from RM300,000 to RM2.5 million.
In addition, during the HOC period, the current 70% margin of financing will be uplifted for the third housing loan onwards for properties valued at RM600,000 and above.
Meanwhile, the Real Property Gains Tax (RPGT) will be exempted for residential property disposals made from June 1, 2020 to Dec 31, 2021.
However, Foo noted that the removal of the 70% margin of financing limit would not help much to stimulate the property market. “During the Covid-19 outbreak, there will be issues like job insecurities. Thus, it would not be a suitable time for homebuyers to seek a third property or more,” opined Foo.
As for the HOC’s reintroduction, Foo said it came as no surprise. “It is expected. But the HOC should also be extended to the secondary market. On average, about 65% of transactions are done in the secondary market in a given year.
On the other hand, he added that the RPGT exemption will benefit the secondary market as well as the primary market. “At least for now, it would not hold back sellers from disposing their properties at a lower price,” he said.
“Overall, [the measures] will boost consumer confidence levels and help with economic recovery. We might not see the results so soon, but we are generally moving in the right direction,” said Foo.
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