Incentives for Property Sector
Prime Minister Muhyiddin Yassin has unveiled an RM35 billion stimulus package to help the economy recover from the impact of Covid-19 and the subsequent Movement Control Order since March 18, which saw the majority of businesses shut down for nearly three months under restrictions on public activities.
The objective of the short term economic recovery plan for property sector is to stimulate the property market and provide financial relief to home buyers.
BENEFICIARIES:
Homeowners, Prospective homebuyers
QUANTUM:
RM1 billion
TIMELINE:
Beginning June 2020
Home Ownership Campaign (HOC) to be reintroduced:
Stamp exemption on the instruments of transfer and loan agreement for the purchase of residential homes priced between RM300,000 to RM2.5 million subject to at least 10% discounts provided by the developer. The exemption on the instrument of transfer is limited to the first RM 1 million of the home price while full stamp duty exemption is given on loan agreement effective for sales and purchase agreement signed between 1st June 2020 to 31st May 2021.
RPGT exemption:
RPGT exemption for disposal of residential homes from 1st June 2020 to 31st December 2021 (This exemption is limited to the disposal of three units of residential homes per individual).
70% margin financial limit will be uplifted:
In addition, the current 70% margin of financing limit applicable for the third housing loan onwards for property valued at RM600,000 and above, will be uplifted during the period of the HOC, subject to internal risk management practices of financial institutions.
