News: Developers laud Budget 2021 as comprehensive and promising

Nov 9, 2020

With various measures to improve home ownership and boost the property sector, Budget 2021 has been lauded by the Real Estate and Housing Developers’ Association of Malaysia (REHDA) for being “comprehensive, inclusive and promising”. 

REHDA President Datuk Ir Soam Heng Choon noted that Budget 2021 is an extension of the stimulus measures rolled out by the government since early 2020.

It also focuses on the rakyat’s well-being, particularly those most affected by the economic downturn after the COVID-19 outbreak, as well as sets the economy on the right track for recovery, reported The Edge. 

Specifically, the stamp duty exemption on the memorandum of transfer and loan agreement for residential units priced below RM500,000 that is set to take effect from 1 January 2021 to 31 December 2025 is an expansion of an early initiative for homes priced from RM300,000 to RM500,000.

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“We believe that the stamp duty waivers will benefit a lot of Malaysians who find it hard-pressed to own a house, particularly those in the B40 and M40 groups,” he said as quoted by The Edge.

The stamp duty exemption extended to white knight contractors as well as the original buyers of abandoned projects will give peace of mind to such buyers who have been significantly affected when their purchased units were abandoned, said Soam.

“Similarly, the stamp duty waivers for the white knights is hoped to encourage more contractors to come in and rescue abandoned units which eventually will realise the dreams of home buyers to have their own homes,” he added.

In welcoming the rent-to-own scheme, Soam said the scheme was what the association had previously called for in a bid to help those who had just joined the workforce and are not yet ready to acquire a home.

“However, we hope that the programme can be extended to more than just the 5,000 units of PR1MA homes, whereby purchasers in the open market can also benefit from the scheme,” he said.

REHDA also expressed its support for the government’s allocation of RM1.2 billion to address the housing needs of the Bottom 40 or B40 income group.

“We believe that the various recipients of this allocation namely Program Perumahan Rakyat, Syarikat Perumahan Negara Berhad’s Rumah Mesra Rakyat and Program Perumahan Penjawat Awam Malaysia will provide the much-needed relief for those in need,” said Soam.

He added that the allocation would also benefit 200 other upstream and downstream sectors as well as the people behind them.

“With Budget 2021, REHDA hopes we will all continue to do our part to elevate the industry and the economy to greater heights, despite the turbulence we are experiencing this year.”

 

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Mohd Fadzli
Senior Real Estate Negotiator
REN: 19805
REAPFIELD PROPERTIES (SJ) SDN. BHD.
fadzli@reapfield.com
(+60) 19-2382238