Budget 2020: Still Need More to Stimulate Property Market
The Real Estate and Housing Developers’ Association Malaysia (Rehda) hopes that more government incentives will be forthcoming to further spur the property market after the Home Ownership Campaign 2019 (HOC 2019) ends Dec 31, 2019.
Rehda president Datuk Soam Heng Choon said HOC 2019 which commences from January this year until Dec 31, 2019 has received positive response from both developers and purchasers.
According to Finance Minister Lim Guan Eng in tabling Budget 2020 in Parliament today, as many as 21,000 property units valued at RM13.44 billion have been successfully sold under the HOC 2019, exceeding the RM3 billion initial sales target.
“We hope more of such incentives will be forthcoming to further spur the industry,” said Soam in a media statement.
He also commended the proposal to reduce the foreign home ownership threshold for condominiums and apartments in urban areas to RM600,000.
“Although limited to a one-year period in 2020 and specific to only urban areas, we foresee that it will assist in alleviating the unsold units issue. We call upon the federal government to ensure the support from state governments in implementing the threshold limit for this period, as this is still very much a matter where states have the final say,” Soam urged.
Rehda also welcomed the announcement to revise the Real Property Gain Tax (RPGT) on the disposal of properties after five years onwards for assets acquired before Jan 1, 2013.
“With the change of the base year, earlier set at Jan 1, 2000 to Jan 1, 2013, we believe that this will significantly lessen the burden of homeowners who are planning to sell their houses,” he shared.
Meanwhile, Rehda also lauded the proposed rent-to-own (RTO) financing scheme to help first-time home buyers.
“Those who are not ready to purchase at the current time will have the option to rent first and buy later based on the price fixed at the time the Tenancy Agreement is signed,” said Soam.
He added that along with the stamp duty waivers on Memorandum of Transfer and Loan Agreement, this scheme will definitely play a role in increasing homeownership amongst the rakyat, as per the national housing agenda.
As for the extension of the Youth Housing Scheme by Bank Simpanan Nasional for another two years, he said this will be beneficial for youths looking for a home.
“With a 10% loan 3 guarantee through Cagamas purchasers’ burden to come up with the 10% deposit will be lessened, in addition to the lower margin instalment for the first two years. However, we hope the limitation to 10,000 home units will be increased to benefit more purchasers,” Soam concluded.