PETALING JAYA (June 5): The Real Estate and Housing Developers’ Association (REHDA) Malaysia is confident that the incentives to stimulate the property market under the Penjana Short-term Economic Recovery Plan (ERP) could help alleviate the financial burden on homebuyers and ultimately contribute to economic growth.
“We would like to take this opportunity to express our gratitude to the Government for taking note of our proposals during our various engagements,” said Rehda president Datuk Soam Heng Choon in a statement following the announcement on the ERP by Prime Minister Tan Sri Muhyiddin Yassin today.
Under the ERP, the Home Ownership Campaign (HOC) was reintroduced 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 homes priced from RM300,000 to RM2.5 million. The exemption on the instrument of transfer is limited to the first RM1 million of the home purchase price. Homebuyers also get to enjoy at least a 10% discount from property developers.
Meanwhile, the Real Property Gains Tax (RPGT) will be exempted for the disposal of residential properties by Malaysian individuals from June 1, 2020 to Dec 2021, limited to three properties per individual.
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.
The association also applauded the ERP in addressing the fiscal challenges brought forth by the Covid-19 pandemic and the implementation of Movement Control Order (MCO) and Conditional MCO.
Rehda believes the measures laid out in the ERP will play a key role in reforming the economic standing of all industries by encouraging consumption as well as spending, while boosting employment.
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