Budget 2022 comments: Property sector

Rehda is appreciative that the government has taken into account our proposal to abolish the Real Property Gains Tax (RPGT) for houses intended to be disposed of from the sixth year onwards by Malaysians and permanent residents in the country.

Initially, the RPGT was introduced to curb speculation when the property market was buoyant. However, under the current soft market conditions, we welcome the move. We hope this measure will help invigorate the property market to make it more resilient and eventually translate into a positive multiplier effect on the economy.

Additionally, the further allocation of RM1.5 billion to continue with housing programmes such as the development of Rumah Mesra Rakyat and maintenance of the public housing units is a step in the right direction. Similarly, the RM2 billion guarantees given to banks through the Guaranteed Credit Housing Scheme to assist those in the gig economy and the likes with the ability to pay without income statements is another welcome move. Hopefully, it will encourage more people from this demographic segment to purchase houses as they now have easier access to home financing.

SP Setia Bhd president & CEO Datuk Choong Kai Wai

Budget 2022’s focus on green budgeting is apt and timely to propel the government’s agenda on sustainability aligned to the 17 Sustainable Development Goals (SGDs). Setia is committed to its sustainability journey as its vision is to become an ever more sustainable digital player in the long term.

We appreciate the government’s initiative to provide a guarantee of up to RM2 billion to banks under the Housing Credit Guarantee Scheme to help those who can repay the mortgage loan but have no proof of fixed income to get approval for said loans. This will help those who are in this predicament to purchase own homes.

Although six years holding is relatively long, we hope the removal of the RPGT for property sales after the sixth year will help to spur the sub-sale market by increasing property transactions and will indirectly help invigorate the supply chain and rejuvenate the property industry.

The RM1.5 billion allocated to the continuation of current housing programmes for low-income earners is welcomed as it continues to help eligible low-income earners own their dream homes. The government must continue to prioritise homeownership as a key national policy as it will also help boost the property market.

We had hoped the government would consider reducing individual income tax rates, especially for those who are affected by the MCO which was not tabled. However, we are heartened to see one-off exemptions provided to help those in need.

Mah Sing Group Bhd founder and group managing director Tan Sri Leong Hoy Kum

The property market will benefit from the newly announced measures such as the allocation of RM2 billion guarantee through the Housing Credit Guarantee Scheme to facilitate loans for those without proof of steady income as well as the RPGT waiver for property disposed from the sixth year and above.

This would be a timely catalyst in expediting the recovery of the property industry in line with the general consensus of expecting 2022 to be a better year for Malaysia.

The government’s provision of RM2 billion guarantee through the Housing Credit Guarantee Scheme will definitely help those without steady income, including the gig economy workers, small entrepreneurs and farmers to have easier access to housing loans and embark on their own homeownership journey.

The RPGT waiver for property disposed from sixth year and above is expected to stimulate more interest in the secondary market. This would also boost the overall property market’s sentiment as buyers could look to upgrade their homes after selling their older units.

PropertyGuru Malaysia country manager Sheldon Fernandez

We welcome the RM1.5 billion allocation to continue low-cost housing projects and the additional RM2 billion allocation to enable those without a stable income to own a home through the Housing Credit Guarantee Scheme under the Pemilikan Rumah Kediaman initiative.

According to our recent Consumer Sentiment Study, 46% of Malaysians surveyed shared that they face difficulties in securing home loans, with the top two barriers being the inability to afford down payment and unstable job or salary. Hence, these two measures will bring relief to the woes of many Malaysians, alleviate the struggles of potential homebuyers in the country, as well as further encourage homeownership in a systematic and inclusive manner as we believe that all Malaysians have the right to own their dream home.

In addition, the government’s move to abolish the RPGT on properties that are disposed from the sixth year onwards is laudable, as we believe this would not only help to decrease the burden of non-speculative property holders, it will also help to stimulate the property market by encouraging the buying and selling of residential properties.

We believe more can be done to help revitalise the property sector, especially as the nation is still at the beginning stages of its journey to recovery. As outlined in our wish list, we hope that the government would extend the Home Ownership Campaign to 2022 and that the incentives under the campaign can be extended to the secondary residential market to help spur the economy and encourage first-time homebuyers to consider buying sub-sale properties. This was also a measure that 58% of Malaysians wished for from the government, according to our Consumer Sentiment Study.

The Property Agents and Practitioners Association (Papa)

Papa welcomes the measures provided for in the Budget 2022 to help the real estate sector.

The removal of RPGT from the sixth year onwards is a much needed relief as those who sell their properties from the sixth year onwards are not necessarily speculators but mostly those who needed money to pay debts, medical fees or children’s education.

The allocation of RM2 billion under housing credit guarantee scheme to assist those without steady income, such as gig economy workers, to purchase homes is much needed to encourage first time home buyers who are from the lower income group.

Building and commercial unit owners would definitely benefit from the special tax exemption given for a rental discount of 30% or more. The Covid-19 pandemic has somewhat alter the usage and demand for commercial space with a significant shift towards working from home thus lessening the need for all the staff to work in office

The RM700 million allocated to enhance digital connectivity in 47 industrial areas and 630 schools, especially those in rural areas is also timely since there is a demand for warehouse space due to the surge in e commerce activities.