Property experts and stakeholders hoped for more incentives to push the property sector forward, amid the ongoing Covid-19 pandemic,
According to Sim Kwang Gek, a tax leader at Deloitte Malaysia, more could have been done to stimulate the property sector.
She proposed, among other things, extending the Home Ownership Campaign (HOC) beyond December 31, 2021.
Sim said that the Real Property Gains Tax (RPGT) exemption for Malaysian citizens and permanent residents disposing of properties with a holding period of more than five years should bring some joy and tax savings to these individuals.
CBRE / WTW group managing director Foo Gee Jen hoped for a full stamp duty exemption on the property's sale so that more money could end up in the pockets of upgraders for their next purchase.
He said that the RPGT exemption on the sale of properties held for five years would have encouraged more families to upgrade from their current smaller homes.
"We see the budget at a neutral relation since there are no groundbreaking initiatives planned for the next year. Though we would have hoped to see more sustainable efforts within the real estate industry such as investments in solar panels and green technology for safer homes, there is still much the industry can reap out of this announcement," he said.
Foo also said that the hotel industry requires more assistance than just wage subsidies to weather the current pandemic.
Datuk Soam Heng Choon, president of the Malaysia Real Estate and Housing Developers' Association (Rehda), said: "While we appreciate the government's efforts and consideration in preparing for an all-inclusive and balanced Budget 2022, we were actually hoping for other positive measures towards a quicker recovery of the property market."
Soam hoped that the removal of the RPGT would energise the Malaysian property market and result in a positive multiplier effect on the economy.
"The RPGT was initially introduced to curb speculation when the property market was buoyant but under the current soft market conditions, we welcome the government's move for the removal," he said in a statement.
Tan Sri Leong Hoy Kum, founder and group managing director of Mah Sing Group Bhd, said that the total allocation of RM332.1 billion under Budget 2022 is expected to provide a significant boost to the overall economy.
According to Leong, this will benefit every industry in some way because people's spending power will increase over time as market conditions improve, income stabilises, and consumer sentiment improves.
"We anticipate that the property market will benefit from newly announced measures such as the allocation of RM2 billion Housing Credit Guarantee Scheme to facilitate loans for those who do not have proof of consistent income, as well as the RPGT waiver for property disposed of in the sixth year. This would be a timely catalyst in expediting the recovery of the property industry," he said.
The RPGT exemption for property disposed of in the sixth year and above, according to Leong, is expected to increase interest in the secondary market.
"This would also boost the overall sentiment in the property market as buyers may look to upgrade their homes after selling their older units," he said.
Datuk Chang Kim Loong, honorary secretary-general of the National House Buyers Association (HBA), said that the allocation in Budget 2022 to build comfortable and quality homes for the lower-income segment will ensure that they have access to comfortable and quality housing.
He said HBA hopes that proper planning, allocation, distribution, and execution are done to ensure that these affordable properties are built for the targeted groups.
No comments:
Post a Comment