By Sharina Ahmad
The government has reintroduced the Home Ownership Campaign (HOC), featuring stamp duty exemptions and Real Property Gains Tax (RPGT) exemption as part of the country’s economic recovery plan starting June 1.
During a special address on a short-term recovery plan called ‘Penjana’, Prime Minister Tan Sri Muhyiddin Yassin said the HOC and other incentives were made to boost the economy and to stimulate the property market as well as to provide financial relief to home buyers.
He said the stamp duty exemption will be given on the instruments of transfer and loan agreement for the purchase of residential homes priced from RM300,000 to RM2.5 million.
However, this is subject to at least a 10% discount provided by the developer.
“The stamp duty exemption on the instrument of transfer is limited to the first RM1 million of the home price, while full stamp duty exemption is given on loan agreement effective for sales and purchase (S&P) agreements signed between June 1, to May 31, 2021.
“Meanwhile, the RPGT exemption is for disposal of residential homes from June 1, to Dec 31, 2021,” he said, adding that the exemption is limited to the disposal of three units of residential homes per individual.
Additionally, the current 70% margin of financing limit applicable for the third housing loan onwards for properties valued at RM600,000 and above will also be lifted during the HOC, subject to internal risk management practices of financial institutions.
Property consultancy Zerin Properties CEO and managing director Previndran Singhe told Property Advisor that the extension of HOC and stamp duty exemption is a welcome move and will help to spur demand in the property industry.
“I think the most exciting is the RPGT exemption as per the last time this was held in 1999 we did see a surge in transactions.”
However, FIABCI Malaysia president Michael Geh expressed disappointment that Malaysia My Second Home program (MM2H) was not addressed in the announcement. “I am disappointed to hear that international buyers have been left out. I was expecting to hear the announcement linking property purchase to MM2H. This would help encourage foreign buyers – not just those who are looking for a second home in Malaysia, but also foreigners with Malaysian spouses who might like to own a house in their home country too.”
The Real Estate and Housing Developers’ Association (REHDA) president Dato Soam Heng Choon is confident that the incentives given by the government will help alleviate the burden of buyers in homeownership and ultimately contribute to the growth of the economy.
“We would like to take this opportunity to express our gratitude to the government for taking note of our proposals during our various engagements,” he said in a statement today.
‘Penjana’ will put RM35 billion into the Malaysian economy through 40 various initiatives and direct benefits.
Muhyiddin also said the plan was necessary as Malaysia, along with the rest of the world, was about to face the worst economic conditions since ‘The Great Depression’ due to the Covid-19 pandemic.
Of the sum announced, Muhyiddin said RM10 billion would be direct fiscal injections from the government.
The introduction of the new plan to restart the economy will benefit up to 3 million workers who have lost their jobs and income during the Covid-19 pandemic.