Home Ownership Campaign Achieved Sales Target in Sabah
The property market in Malaysia is delighted with the news of the extension of the Home Ownership Campaign 2019 (HOC). Chew Sang Hai, President of Sabah Housing and Real Estate Developers Association (SHAREDA) extended his thanks on behalf of SHAREDA to the ministries involved for extending another 6-month period of HOC 2019 stamp duty waivers for all residential properties sold during 1 January 2019 to 31 December 2019, instead of 30 June 2019.
Chew Sang Hai also express his positive view on Sabah’s economy, especially the real estate industry during their press conference on 5 July 2019 at Grand Merdeka Mall. “HOC has garnered an encouraging result since its launch and stirred up a lot of activities in the market.” Chew commented.
“The target of property sales in Sabah during the HOC period was set at RM300 million. I am very glad to announce that we have almost achieved that target by generating RM287 million worth of property sales, and that is not including those commercial and non-HOC registered projects.” Chew said.
Apart from the stimulants in the HOC, alternative financing options introduced during the same period also helped to encourage property purchases, such as the Rent-To-Own scheme. During the press conference, Chew opined that RTO scheme can be improved by making the application requirements easier for everyone. He added that the monthly rental charges should not be as high as an ordinary loan repayment as it would defeat the purpose of the scheme.
In accordance with the Budget 2019 announcement, the upward revision in Real Property Gain Tax (RPGT) is set to be as high as 30%. Chew thinks that this further discourages property transaction, especially during a period where the economy and market sentiments are less favourable.
On this note, SHAREDA proposed that the rate should be dropped to 5% in order to encourage sales movement in the secondary market. He quoted that Indonesia has just reduced their RPGT from 5% to just 1% in an effort to stimulate the property market, which will result in a ripple effect across the economy effectively.
“Now is the best time for homebuyers to buy properties because of all the incentives and discounts available in the market. It is also a great time for developers to build and sell properties now because the cost of construction will only increase over time.” John Tan Duo Zer, Chief Operating Officer of Hap Seng Properties Development Sdn. Bhd said. He added that this joint effort between the government and housing associations indirectly benefits other sectors related to property development.
Gerald Goh Wah Yong, the Chief Operating Officer of Kinsabina Group Sdn. Bhd. said that the government and banks should work together to improve the loan approval rate and property market. “The economy works better when people take out loans.” He added.
Overall, SHAREDA is positive that the extension of this campaign will further boost the state’s economy and homeownership, coupled with a forward-looking government and political stability.