Consumers Association of Penang supports vacancy tax to curb property speculation

• “Its primary aim is to deter property speculation, particularly in the medium-cost segment, where rising prices in the subsale market have increasingly placed home ownership beyond the reach of middle-income earners.”

GEORGE TOWN (July 17): The Consumers Association of Penang (CAP) strongly supports the introduction of a vacancy tax on residential properties that remain unoccupied for extended periods.

CAP president Mohideen Abdul Kader said this measure is urgently needed to curb property speculation and improve housing affordability.

“A vacancy tax typically applies to properties that remain vacant—unsold or unrented—for more than six months in a year.  In countries such as Canada and Australia, particularly in cities like Melbourne, this tax is set at between one and 3% of the property or land value.

“Its primary aim is to deter property speculation, particularly in the medium-cost segment, where rising prices in the subsale market have increasingly placed home ownership beyond the reach of middle-income earners,” he said in a statement on Thursday.

Mohideen emphasised that many homes, especially in urban areas, are left vacant while thousands of Malaysians continue to struggle to secure affordable housing.

“A vacancy tax would act as a strong disincentive to leave properties idle and would encourage owners to either rent out or sell them, returning more units to the active housing market,” he said.

The CAP also called on the government to review the real property gains tax and stamp duty, proposing higher rates on the sale of properties held for a short period as well as on the purchase of second and subsequent homes.

In addition, Mohideen urged stricter controls on property purchases by foreign buyers and on housing loans to individuals owning more than one home, including lowering the loan-to-value ratios to curb speculative borrowing.

“Unless the government introduces comprehensive policy reforms, Malaysia’s housing sector will continue to favour investors at the expense of ordinary citizens. It is the government’s duty to uphold the principle that housing is a fundamental right, not a speculative commodity,” he said.

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