Budget 2021: Industry leaders' feedback on stamp duty exemption | Malaysian Institute of Estate Agents

Budget 2021: Industry leaders' feedback on stamp duty exemption

2020-11-06

To know more about Budget 2021, please watch this short video regarding Budget 2021:
Credits to EdgeProp for this video.

To further promote homeownership, the Government has announced a full stamp duty exemption on instruments of transfer and loan agreement for first-time homebuyers on residential properties priced RM500,000 and below.

This exemption is effective for sale and purchase agreements executed from Jan 1, 2021 to Dec 31, 2025.

MIEA president Lim Boon Ping:
“It is a good measure, the extension, but it is not something new. What we are looking for are additional measures to stimulate the property market and also extending the incentives to the secondary market as well.”

Henry Butcher Malaysia COO Tang Chee Meng:
“We were hoping that the stamp duty exemption would be extended to those who are buying from the secondary market but this has not been considered in the budget.”

Rehda Malaysia president Datuk Soam Heng Choon:
“Rehda welcomes the [stamp duty waiver for first residential home] as part of the government’s initiative in encouraging homeownership amongst the Rakyat, which was also in our Budget Wishlist to the government. With the expansion from the earlier RM300,000 houses to RM500,000 for a period of five years, we believe that the stamp duty waivers will benefit a lot of Malaysians who find it hard-pressed to own a house, particularly those in the B40 and M40 groups.”

Mah Sing Group Bhd founder and group managing director Tan Sri Leong Hoy Kum:
“Overall, the Budget 2021 would help to alleviate the people’s burden in owning their homes, which indirectly stimulates the property market, such as full stamp duty exemption on the instruments of transfer and loan agreement for the purchase of first residential properties worth up to RM500,000, starting from Jan1, 2021 until Dec 31, 2025.”

S P Setia Bhd president and CEO Datuk Khor Chap Jen:
“The exemption of stamp duty on MOT and legal fees will help to encourage sales for first-time homebuyers. Waiving this duty is a good move to help boost the interest as it reduces the affordability gap for first-time homebuyers.”

National House Buyers Association (HBA) honorary secretary-general Datuk Chang Kim Loong:  
“This is a good proposal as it is restricted to first-time house buyers and the stamp duty savings of RM9,000 and RM2,250 on loan agreements (assuming 90% financing) will certainly help those who wish to buy their first homes, irrespective from housing developers or the secondary market.”

CBRE | WTW group managing director Foo Gee Jen:
“Developers and first-time buyers of abandoned housing projects which have been revived will also be entitled to full stamp duty exemption for the document of transfer of title and loan agreement for the period Jan 1, 2021 to Dec 31, 2025. This may assist to rehabilitate some existing abandoned projects.”

KGV International Property Consultants (Johor) executive director Samuel Tan:
This will help developers to clear their existing stocks and encourage developers to build houses that are priced RM500,000 and below.”

MIPFM president Adzman Shah:
Stamp duty exemption... may not help strata property purchasers if the strata titles are delayed beyond 2025 as stamp duty is payable only upon MOT being submitted when strata titles are issued.”

PA International Property Consultants (Penang)  executive director Michael Loo:
“While the announcement on the full stamp duty exemption up to Dec 31, 2025... will help, the key factor in stimulating the property market is affordability.”

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