Developers: Budget 2021 will boost nation’s real estate industry

KOTA KINABALU: Sabah housing developers believe that Budget 2021 could perk up the real estate industry in the country.

Sabah Housing and Real Estate Developers Association (Shareda) president Datuk Chew Sang Hai said that the waiver on stamp duties and the Rent to Own scheme would help boost the real estate market.

The Budget 2021 proposes a Stamp Duty Waiver on both instruments of transfer and loan agreements for first-time home owners with house values of RM500,000 and up.

The exemptions effect Sale and Purchase Agreements (SPA) done from Jan 1, 2021 till Dec 31, 2025.

Chew said that the proposal for a Rent-to-Own Financial Scheme by selected Government Link Corporations (GLC) housing projects would also boost the real estate industry.

“This will help rakyat own their dream home,” he said, adding that the proposed measures will further revitalise the real estate industry and extend the home ownership ability to the people.

Based on nationwide sales via Home Ownership Campaigns (HOC) over the last two years, he said there was an “obvious slow take-up rate on bookings in the last few months, mainly due to Covid-19.”

Chew said Shareda hoped that the Sabah government will include more incentives in the state Budget to boost the property market.

“We propose for the Sabah government to consider waiving at least three to five years of Assessment Tax for properties under the HOC.

“This would be an additional incentive to help revitalise the Sabah property market and subsequently improve market sentiment and confidence,” he added.

Shareda also proposed financial aid from local financial institutions such as for the Borneo Development Corporation (Sabah) and Sabah Credit Corporation to provide 100% end financing with subsidised interest to Sabahan owners who purchased houses below RM380,000.

He said such a step would be similar to the Sarawak government’s own facilities provided via Mutiara Mortgage & Credit Sdn Bhd to help Sarawakians finance affordable homes.

Chew also hoped the “Sabah My Second Home” programme – proposed during last year’s Budget – would be implemented soon by the new state government.

“The initiative should encourage greater foreign investors by reducing the foreign purchaser threshold to property value at RM500,000 onward,” he added.

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