Group says stamp duty exemptions will support residential property development

PETALING JAYA: The Associated Chinese Chambers of Commerce and Industry of Malaysia (ACCCIM) welcomes the Finance Ministry's announcement that the government will continue to implement stamp duty exemptions for property purchases by first-time house buyers.

The government has implemented a 100% stamp duty exemption on the instrument of transfer and loan agreement for properties priced RM500,000 and below until the end of 2025.

It has also implemented a 75% exemption for properties priced between RM500,001 and RM1mil from June 1, 2022 until Dec 31, 2023.

In addition, all property transfers based on love and affection between spouses, parents and children, grandparents and grandchildren will receive full stamp duty exemption for the first RM1mil of the property’s value.

"This measure will encourage first-time home ownership and support the development of residential property, which bodes well for other supporting industries," ACCCIM said.

"The stamp duty exemption will result in savings for house buyers with an estimated RM11,500 in savings for properties priced at RM500,000, and RM21,750 in savings for properties valued at RM1mil, respectively."

ACCCIM added that the measure is expected to help improve sales of new properties priced between RM500,000 and RM1mil amid the impact of higher lending rates.

"In 1Q 2023, the residential property sector recorded 153,923 transactions worth RM20.9bil, a decline of 6.6% in volume and 9.1% in value year-on-year (y-o-y)," it said.

The group hoped that the financial institutions will continue to provide attractive home mortgage packages for first-time house buyers in supporting the Home Ownership Programme.

"It is hoped that the government will consider extending the stamp duty exemption period for property priced between RM500,001 and RM1mil until the end of 2025 from end-2023 at the tabling of the 2024 Budget in October 2023," it said.

"This is to standardise with the exemption period for the property value RM500,000, which is until end-2025," it added.