PENANG Real Estate and Housing Developers’ Association (Rehda) is appealing to the Penang government to extend the waiver of the 3% levy on foreign purchasers.
The association chairman Datuk Toh Chin Leong said that the state government has given the waiver this month (February).
“Penang Rehda has written to the state to appeal for an extension. We hope that the waiver can be given until June this year and not only February; so that the incentive can be aligned with the Home Ownership Campaign 2019 (HOC 2019).
“We have to advertise that there is such incentive for the foreign purchasers.
“The foreign purchasers need time to choose their preferred property. Then, they need to check with the banks on the amount of loan that they can get.
“By the time they do all that, one month is over. A month period is not enough,” Toh told a press conference after the opening ceremony of the HOC 2019 – MAPEX 2019 property fair at Udini Square today.
Toh also spoke on the incentives given by the Federal Government.
“All buyers (Malaysia citizens only) with Sales and Purchase Agreement (SPA) dated between Jan 1 and June 30 this year can enjoy the stamp duty exemption. This exemption only applies to residential properties.
“The stamp duty exemption is only for the sale of property from a developer to a purchaser. The eligible property must be registered with Rehda Malaysia.
“The stamp duty on the instrument of transfer for property between RM300,000 and RM1 million is fully exempted; while the stamp duty for the first RM 1mil is waived for property above RM1 million up to RM2.5 million. The stamp duty on the excess amount still stays at 3% instead of 4%.
“Meanwhile, the stamp duty on the loan agreement for property up to RM2.5 million is fully exempted,” Toh said.
He reiterated that developers who want to take part in this HOC 2019 must register their projects with Rehda.
“This applies to Rehda members and non-members. They must register their projects with Rehda to enjoy the incentives.
“Rehda must certify every SPA that is signed. So, it is important for developers to know that they must register the projects that they wish to include in the HOC 2019 to enjoy the stamp duty exemption incentives,” Toh said.
Penang Rehda immediate past chairman Datuk Jerry Chan said banks should make housing loans easier to obtain.
“The housing loan default rates has not gone up much.
“This shows that people are still paying their housing loans. Most people want to own homes and they will do their best to keep their homes,” he said.
Chan also said that they were still awaiting the announcement by state Local Government, Housing, Town and Country Planning Committee chairman Jagdeep Singh Deo on review of charges imposed on property developers.
The HOC 2019 – MAPEX 2019 property fair at Udini Square is open from 10am to 9pm from Feb 7 to Feb 10.
For more details, call 03-7803 2978.
Story by Christopher Tan
Pix by Alissala Thian