PETALING JAYA: The finance ministry has extended by six months stamp duty exemption for first-home purchases till Dec 31 this year.
In a statement today, Finance Minister Lim Guan Eng said his ministry has accepted an appeal by the housing and local government ministry (KPKT) to do so as this is expected to help clear the number of unsold houses.
The stamp duty exemption was part of incentives contained under the Home Ownership Campaign (HOC), announced in Budget 2019 and became effective for the period Jan 1 till June 30 this year.
Stamp duty exemption of 100% was limited to the first RM1 million of the house’s value, with remaining value subject to a 3% rate.
The HOC involved the KPKT, the Real Estate and Housing Developers’ Association (Rehda), the Sabah Housing and Real Estate Developers Association (Shareda) and the Sarawak Housing and Real Estate Developers’ Association (Sheda).
Under the HOC, housing developers offer at least 10% discounts on purchase prices.
Lim said according to a report from the National Property Information Centre (Napic), the number of unsold residential properties in Malaysia had risen to 32,313 units, valued at RM19.86 billion, in the fourth quarter of 2018.
“This reflects the long-standing issues of home ownership, as well as the mismatch between the supply and demand of houses in the market.
“Compared to the fourth quarter of 2017, this represents a 30.6% increase in the volume of residential units unsold and 27% increase in the value of residential units.”