Budget 2021 lacks property market stimulating measures but first-time homebuyers to benefit | Malaysian Institute of Estate Agents

Budget 2021 lacks property market stimulating measures but first-time homebuyers to benefit

2020-11-06

In terms of the property-related measures, Budget 2021 is mainly targeted to provide additional assistance for first-time homebuyers, according to Malaysian Institute of Estate Agents (MIEA) president Lim Boon Ping (pictured).

"It does not really stimulate the market but rather, to assist the first-time homebuyers. To be fair, the Pelan Jana Semula Ekonomi Negara (Penjana) is the measure aimed at stimulating the property market," Lim told EdgeProp.my after the tabling of Budget 2021 by Finance Minister Datuk Seri Tengku Zafrul Tengku Abdul Aziz today.

He expected the Budget to provide further property market stimulating measures and extension of incentives to the secondary market. "What's missing from the Budget are these two measures. Again, I emphasise that we are hoping for more market stimulating incentives as well as those for the secondary market -- why can’t first-time house buyers choose from secondary market?" he stressed.

Additionally, Lim acknowledged the extension of the stamp duty exemption on instruments of transfer and loan agreement for first-time homebuyers for homes priced up to RM500,000 (until 31 December 2025).

"It is a good measure however, it is not something new," said Lim.

To recap, Penjana was announced on June 5 by Prime Minister Tan Sri Muhyiddin Yassin which included the reintroduction of the Home Ownership Campaign (HOC); removal of the 70% financing cap for a third home loan of RM600,000 and above during the HOC period; exemption of Real Property Gains Tax for Malaysians who sell their residential property (up to three) between June 1, 2020 and Dec 31, 2021.

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