2021 Budget encourages purchase of first house among B40, M40

Malaysian Real Estate and Housing Developers’ Association (REHDA) president Datuk IR Soam Heng Choon, in welcoming the move, regarded it as part of the government’s initiative to encourage the people to have their own house.

Finance Minister Tengku Datuk Seri Zafrul Tengku Abdul Aziz, when tabling Budget 2021 in the Dewan Rakyat yesterday, said the government was taking steps to exempt stamp duty on instrument of transfer of ownership and and loan agreement for the purchase of a first home worth up to RM500,000.

"This exemption is for the sale and purchase agreement made from Jan 1, 2021 until Dec 31, 2025," he said.

REHDA also praised the government's move in exempting the stamp duty exemption on Memorandum of Transfer and Loan Agreement for 'Rescue' contractors and original buyers of abandoned property projects during the same period.

"This initiative will provide a peace of mind to buyers who have been severely affected when the project for which they have purchased units, is abandoned. It is also hoped that this move will encourage more contractors to save these units and realise the dreams of first home buyers," he said in a statement today.

Sharing the same view is Malaysian Institute of Estate Agents (MIEA) Lim Boon Ping, who said that Budget 2021 gave more priority to first-time home buyers.

“We hope the government will expand incentives to the secondary property market and not just prioritise house buyers of the primary market.

“True, that the government is providing stamp duty exemption for purchase of a first house of up to RM500,000, but it is not mentioned if it also applies to the secondary property market as well," said Lim, who has more than 20 years of experience in real estate.

Meanwhile, a property consultant from Transasia Property Consultancy Sdn Bhd, Muhamad Rais Yeop Johari said the government's efforts would revive the domestic property market, apart from reducing the glut in properties that could not be sold by developers this year due to the COVID-19 pandemic.

“The RM1.2 billion allocation can also guarantee more groups under the People's Housing Project (PPR) to own their own homes," he added.

-- BERNAMA