‘Incentives will help spur property sector’

  • Metro News
  • Friday, 12 Jun 2020

The Home Ownership Campaign is being reintroduced as part of measures to spur the property sector that has been hard hit by the Covid-19 pandemic. - Filepic

JOHOR BARU: Johor Real Housing Estate and Developers Association (Rehda) has welcomed the Federal Government’s new stimulus package, which it says offers a much-needed boost to the property sector.

Its chairman Datuk Steve Chong Yoon On said the association was thankful for the incentives — announced as part of the RM35bil short-term stimulus plan known as Penjana — which he said was an acknowledgement for the sector as a new economic driver for the country.

“This is an important move by the government in helping our country move forward after Covid-19.

“The exemption of real property gains tax (RPGT) and partial removal of stamp duties will help encourage people to buy a house,” he said when contacted.

Chong said the stimulus package would certainly help spur the sector and aid people in securing their dream home.

“However, the government must also introduce a sustainable development policy in the long run that will help developers as well as future housebuyers.

“The government should do away with outdated policies besides introducing a proper mechanism to release cash flow for developers,” he pointed out.

He said this would help developers in building more houses meant for the lower and middle-income group.

Chong also urged the government to help promote Malaysia, and in particular Johor, in the international market as an ideal location for foreigners to stay.

“Malaysia has many advantages to attract foreigners as we do not have any natural disasters, we have good international universities here and our cost of living is lower compared to other countries,” he said.

Prime Minister Tan Sri Muhyiddin Yassin announced three measures to boost the property sector with the reintroduction of the home ownership campaign (HOC).

Among the measures are the removal of the 70% loan limit for residential units priced from RM600,000 and partial removal of stamp duties.

The stamp duty for the memorandum of transfer of properties, valued at between RM300,000 and RM2.5mil, is waived for the first RM1mil, while the stamp duty for the loan agreement is fully waived.

These waivers will last until next May.

Houseowners also need not pay the RPGT when they sell their house, valid until December next year, and can get the tax break for up to the third house sold.
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Rehda , property , Penjana , stimulus package


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