KUALA LUMPUR (March 4): The Malaysian Institute of Estate Agents (MIEA) has called on the Government to extend the incentives offered to first-time buyers under the six-month National Home Ownership Campaign to the secondary property market.
MIEA said it is important that all parties recognize that the secondary market is the ‘bedrock’ of the property sector which sustains the real estate market and provides the thrust for its sustained growth.
MIEA also pointed out that the secondary residential property market makes up about 80% of all residential property transactions in the country, compared to around 20% of new properties or primary market.
“MIEA is very appreciative of the fact that the Ministry of Finance has introduced new programmes to stimulate the primary market by focusing on first-time home buyers. However it is critical that we should not close the door to first-time property buyers by limiting incentives to only properties offered by developers,” it said.
MIEA said there are 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. This will also support the Government’s goal of encouraging home ownership in the secondary market,” it said.
Therefore, MIEA proposes that for first time home buyers of secondary properties, they should be provided with stamp duty exemption on instrument of transfer from Jan 1 to June 30, 2019 for properties ranging from RM300,001 to RM1,000,000.
MIEA said the two biggest challenges in home ownership for first time home buyers are the ability to have enough funds to place a down payment and loan eligibility.
In view of this, MIEA calls for a mechanism of the rent and buy programme to be set up for this category of purchasers through a special vehicle or through banks to help them in the two challenges.
“We also request 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,” it said.
MIEA said 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 stabilize the property market. For the property sector to grow we need a vibrant primary and secondary market and thus far the emphasis has only been on the new property market,” it said.
MIEA said it is confident that this will be akin to giving a much needed injection to create new interest in the secondary market and will allow sellers of long-held residential properties to offload and in doing so they will in turn look at the new properties as an alternative choice of living.
“MIEA also requests the Government to provide support to the real estate fraternity and real estate firms to modernize through technology and digitization.
“There are so many disruptions in the market by those unrelated to the real estate profession and our practitioners need to keep up with new technological advancements to support the efforts of the real estate industry,” it said.
“Real estate firms need support to develop the profession and MIEA proposes that tax exemption be given to those who are keen to invest in digitization. Through these efforts the profession would be able to modernize itself to be effective and efficient to benefit Malaysian property buyers,” it added.
