Malaysia’s Budget 2017 was recently tabled with a focus on ensuring unity and economic growth, prudent spending as well as the wellbeing of the Malaysian citizens. Here’s a short take on what has been installed for the Malaysian property market in 2017 and what you can keep your buyers apprised of:
- On Buying Property
First-time homebuyers can enjoy 100% exemption of stamp duty on the instruments of transfer, valid only from January 1, 2017 to December 31, 2018 and applies to homes with a maximum value of RM300,000.
Home loans of 90% to 100% will be more accessible with a significant reduction on the loan rejection rate. Individuals with a monthly income of RM3,000 may now apply for a loan of more than RM295,000 compared to the current total of RM187,000.
More than 3,000 homes allocated to the Perumahan Rakyat 1Malaysia (PR1MA) and Government-Linked Companies (GLCs) will be sold between RM150,000 to RM300,000 (below the market prices of RM250,000 to RM400,000).
About 5,000 People’s Friendly Homes (PMR) will be built with the government’s provision of a maximum subsidy of RM20,000 for each unit, while 11,250 homes in the People’s Housing Programme (PPR) will be sold at prices from RM35,000 to RM42,000 (significantly lower than the construction costs of RM120,000 to RM160,000 each).
- On Selling Property
An increase of stamp duty from 3% to 4% is now imposed on the instruments of transfer in the case of properties worth RM1 million and more, effective January 1, 2018.
- On Owning Property
A grant of maximum RM10,000 to registered Residents Associations has been reintroduced and will be used for neighbourhood maintenance as well as the acquisition of security equipment.
Owning a property has always been a thorn in the side for many Malaysians. As an agent, do pay more attention to the new prices of homes for the upcoming year and align your marketing and listing strategies to meet the demands of your buyers.
Perhaps there will be a silver lining in the 2017 Budget, after all, to help make property more affordable for everyone. What are your thoughts of the Budget 2017? Do share your views in the comments below!
