PETALING JAYA: The government has announced several new incentives for the housing market in a bid to address the issue of unsold homes, including at least 10% discount for properties bought during the Home Ownership Campaign (HOC).
Finance Minister Lim Guan Eng said for homes priced up to RM2.5 million, the stamp duty on transfer of ownership title or memorandum of transfer (MOT) will be waived for the first RM1 million and reduced to 3% for the subsequent RM1.5 million. The 3% stamp duty will revert to 4% after the campaign ends.
Speaking to reporters at a briefing today, he said that the stamp duty on loan agreement will also be waived for the purchase of homes priced above RM300,000 to RM2.5 million.
These new incentives are only applicable for purchases from the primary market during the nationwide campaign which runs from January till June 2019.
The stamp duty waivers are on top of other incentives announced under Budget 2019 such as stamp duty waiver for the first-time purchase of houses priced up til RM1 million and also the RM1 billion Fund for Affordable Homes launched by Bank Negara Malaysia.
In addition, developers have agreed to reduce house prices by at least 10% during the campaign, for all completed but unsold homes.
The Real Estate and Housing Developers’ Association Malaysia (Rehda) and the Housing and Local Government Ministry have been tasked to ensure that the developers who participate in HOC provide 10% discount against the advertised selling price.
“Developers must advertise the prices before and after discount,” said Lim, who urged developers participating in HOC to give more than 10% discount.
He said the government will take action against participating developers who do not reduce prices by at least 10% with additional tax or penalty.
He hopes that the incentives and discounts would be able to reduce the supply overhang situation and improve the nation’s economy. As of third quarter last year, there were 30,115 units of unsold homes.
Meanwhile, National Housing Department director-general N. Jayaseelan who was also at the briefing, announced several additional perks such as allowing developers to offer free legal fees and additional items such as furniture.
He said the government is also allowing flexibility in terms of payment such as staggered payments, to make it easier for purchasers. These additional perks are available for one year.
He said there are 3,384 units of houses priced RM150,000 and below that are unsold, out of a total 16,528 units built within this price range.
The HOC exhibitions will be held nationwide during the six months period, organised by Rehda members in the various states, as well as Sabah Housing and Real Estate Developers Association and Sarawak Housing and Real Estate Developer Association in Sabah and Sarawak.
The biggest expo will be held in KLCC from March 1 till 3, featuring over 180 booths and up to RM5 billion worth of properties, with an estimated 50,000 visitors expected.