KUALA LUMPUR: The Malaysian Institute of Estate Agents (MIEA) has urged the government and stakeholders to weigh the importance of the secondary residential property market by reviewing incentives, offered during the six-month National Home Ownership Campaign 2019, to be extended to first-time home buyers looking to purchase from the secondary market.
Citing the National Property Information Centre (NAPIC) data, it said the secondary property market makes up about 80 per cent of all residential property transactions in the country, compared to around 20 per cent of new properties (the primary market).
“There are significantly more varieties of homes at affordable prices for first-time home buyers within the secondary property market. Based on this premise, we should allow for the exemption of stamp duties to cover the purchase of homes within the secondary market by first-time buyers.
“As MIEA appreciates that the Finance Ministry has introduced new programmes to stimulate the primary market by focusing on first-time home buyers, it is also critical that we should not close the door to first-time property buyers by limiting incentives to only properties offered by developers,” it said in a statement yesterday.
For first-time home buyers of secondary properties, MIEA proposed that stamp duty exemption on instrument of transfer be extended from Jan 1 to June 30, 2019, for properties priced from RM300,001 to RM1 million; and stamp duty be exemption on instrument of transfer for loans up to RM1 million be given during the same period.
It said a mechanism of ‘Rent & Buy programme’ should be set up through a special vehicle or through banks to help buyers who were having challenges on the ability to place down payment and loan eligibility.
“We have also requested Bank Negara Malaysia to study and implement a fair and equitable loan approval and streamlined process for first-time buyers and/ or set up a special revolving fund to fund these buyers.
“This will allow for a shift in the dynamics of the property market, not only allowing for the disposal of ‘overhang’ properties but also unsold completed projects that are vacant. This will help further stabilise the property market,” it said.
The association, which represents close to 6,000 registered real estate practitioners in the country, also hopes that the tax exemption would be given to industry players who modernise themselves to be more efficient and effective through digitalisation. — Bernama