Stamp duty reduction will not boost transactions for residential sector, says MIEA

• RM10 stamp duty on transfers of property by way of love between family members beyond husband and wife “shows the government’s soft spot for the family unit and will be a welcome move”.

KUALA LUMPUR (Oct 7): While welcoming the 25% discount off stamp duty on memorandum of transfer (MOT) for properties between RM500,000 to RM1 million for first time homebuyers, the Malaysian Institute of Estate Agents (MIEA) is of the view that the move “will not create a boost in transactions for the sector”.

However, it “will certainly be a sweetener for those who will be purchasing their first home… as it reduces their cost of purchase,” said president Chan Ai Cheng (pictured).

“Home ownership has always been encouraged in this country. For a property purchased at RM750,000, MOT will be RM16,500 and now under the new proposed budget incentive, there will be savings of RM15,000,” Chan explained.

As for the RM10 stamp duty on transfers of property by way of love between family members beyond husband and wife to include parents and children, she noted that it “shows the government’s soft spot for the family unit and will be a welcome move”.

The Credit Guarantee Scheme (SJKP) which was introduced during last year’s budget for those who do not have fixed income “continues in 2023, which is a good move to help them secure loans to purchase properties”.

Chan also noted that the RM15 billion allocation for the Flood Mitigation Plan till 2030 is a “long-term strategy to address the issues throughout the country, which has not only affected lives and livelihood but perceived property values in the affected areas”.