THE MALAYSIAN RESERVE. 31ST OCTOBER: The Real Estate and Housing Developers’ Association (REHDA) has appreciated the efforts and consideration taken by the government to prepare for an all-inclusive and balanced Budget 2022.
However, REHDA president Datuk Soam Heng Choon expressed that the association was actually hopeful of other positive measures towards faster recovery of the property market.
“As the nation slowly mends itself from the pandemic, we hope that this expansionary Budget will benefit all sectors of the economy and pave the way for national recovery and growth.
“REHDA looks forward to working with the government in promoting a more stable, healthy and progressive real estate and property sector,” he said in a statement yesterday.
Soam noted that for the housing sector, REHDA is appreciative that the government has taken into account its proposal to abolish the Real Property Gains Tax (RPGT) on homes disposed on the sixth year onwards by Malaysians and permanent residents in the country.
He said the RPGT was initially introduced to curb speculation when the property market was buoyant but under the current soft market conditions, the association welcomes the government’s move for the removal.
He also hoped that 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, Soam said the government’s sentiment on the necessity of homes for all individuals, especially the B40 is echoed within the association.
“The further allocation of RM1.5 billion to continue with housing programmes such as 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 (Skim Jaminan Kredit Perumahan) to assist those in the gig economy and alike, with the ability to pay but without income statement is another welcome move,” he added.
He said this will hopefully encourage more from the group towards home purchase as they now have easier access to home financing.
Echoing similar views, PropertyGuru Malaysia country manager Sheldon Fernandez expressed that more could have been done to revitalise the property sector under the Budget 2022.
He believes 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.
Meanwhile, SP Setia Bhd president and CEO Datuk Choong Kai Wai stressed that the government must continue to prioritise homeownership as a key national policy as it will also help boost the property market.
He added that 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.
“We had hoped the government would consider reducing individual income tax rates, especially for those who are affected by the Movement Control Order (MCO) which was not tabled.
“However, we are heartened to see one-off exemptions provided to help those in need,” he said.
Although six years holding is relatively long, Choong hopes 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.
He also said 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).
As such, Choong said SP Setia is committed to its sustainability journey as its vision is to become an ever more sustainable digital player in the long term.
Mah Sing Group Bhd founder and group MD Tan Sri Leong Hoy Kum said he foresees 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.
He added that 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.
“With the government taking the important steps in steering the direction, we believe that all industry players and stakeholders will work together to ensure that the incentives will ultimately benefit the home buyers and propel the property market in Malaysia,” he noted.