Budget 2013: Housing & Property
The Government acknowledges that comfortable and affordable housing is the most important basic necessity for the rakyat. The Government is committed in ensuring that the rakyat has the opportunity to own a house. This is not only an economic imperative, but also a moral imperative for a responsible Government. Therefore, the Government will make affordable housing a continuous priority. I am happy to announce that the Government will allocate RM1.9 billion to build 123,000 affordable housing units in strategic locations in 2013. The initiative will be implemented by PR1MA, Syarikat Perumahan Nasional Berhad (SPNB) and Jabatan Perumahan Negara.
A total of RM500 million will be spent by PR1MA to build 80,000 houses in major locations nationwide with the selling price ranging between RM100,000 and RM400,000 per unit. Among the locations are Kuala Lumpur, Shah Alam, Johor Bahru, Seremban and Kuantan.
In addition, PR1MA will provide the Housing Facilitation Fund totalling RM500 million to build houses in collaboration with private housing developers. The house prices under this programme will be 20% lower than the market price and distributed through an open balloting system.
Meanwhile RM320 million will be allocated through SPNB to build 22,855 residential units including low and medium-cost apartments, Rumah Mesra Rakyat and Rumah Mampu Milik. SPNB’s housing projects, which will be implemented immediately, include the construction of 1,855 medium-cost apartment units with a built-up area of 850 square feet in Shah Alam and Sungai Buloh. These units will be sold at about RM120,000 to RM220,000 per unit.
With regard to Rumah Mesra Rakyat programme, SPNB will build a total of 21,000 houses in 2013. Under this programme, SPNB will construct houses priced at RM65,000 per unit with a subsidy of RM20,000 as well as a 2% subsidy on interest rate.
In addition, a sum of RM543 million will be provided to Jabatan Perumahan Negara for the implementation of 45 projects under the Rakyat Housing Programme (PPR) involving 20,454 units which will be constructed through the Industrialised Building System (IBS). These units of houses will be sold at a price between RM30,000 and RM40,000 per unit, much lower than the market price of about RM120,000 per unit. The Government will also allocate 20% of the PPR houses to public sector employees and 1% to the disabled.
To enable more Malaysian own their first residential property, My First Home Scheme, which was launched under the previous Budget, will be improved by increasing the income limit for individual loans from RM3,000 to RM5,000 per month or joint loans of husband and wife of up to RM10,000 per month. In addition, the requirement for a savings record equivalent to three months instalment and minimum employment of six months will be abolished.
In the 2009 Budget, the Government had given a 50% stamp duty exemption on the instrument of transfer agreements and loan agreements for the purchase of the first residential property of up to RM350,000. The Government proposes that the stamp duty exemption is extended to 31 December 2014 with the price limit on residential properties raised to RM400,000.
Revision of Real Property Gain Tax
The limited supply of real property especially in urban areas has provided opportunities for speculative activities. Therefore, the Government proposes the real property gains tax (RPGT) from the disposal of properties made within a period not exceeding 2 years from the date of purchase will be taxed at the rate of 15% and 10% for disposal of property within a period of 2 to 5 years. For property disposed after 5 years from the date of acquisition, RPGT is not applicable. In addition, gains from the disposal of one residential property once in a lifetime and disposal of properties based on love and affection between husband and wife, parents and children, grandparents and grandchildren are exempted from RPGT.
Tax Incentive for Revival of Abandoned Housing Projects
Furthermore, in 2013 the Government will allocate RM100 million to the Ministry of Housing and Local Government to revive 30 abandoned housing projects. In addition, to encourage the involvement of the private sector, the Government will provide tax incentives as follows:
First: Banking institutions be given tax exemption on interest income received from the rescuing contractor/developer;
Second: Rescuing developer be given a double deduction on interest paid and all direct costs incurred in obtaining loans;
Third: Rescuing contractor be given stamp duty exemption on all instruments executed for the purpose of transfer of land or houses and loan agreements to finance the cost of revival; and
Fourth: Original house buyer in the abandoned project be given stamp duty exemption on all instruments executed for the purpose of obtaining additional finance and the transfer of the house.
Source: The Star
*To enable more Malaysian own their first residential property, My First Home Scheme, which was launched under the previous Budget, will be improved by increasing the income limit for individual loans from RM3,000 to RM5,000 per month or joint loans of husband and wife of up to RM10,000 per month.
Meaning gov already expected properties price will not drop in 2013.
@Elmo
You are right. It is definitely will not drop and only increase in slow mode.
The RPGT is not increase 5% for the first 2 years disposal and the remaing years are unchanged. It is no significant impact on the property sector.
I would think that this is balanced budget by stablizing property price in affordable house as well as the high end properties.
*A total of RM500 million will be spent by PR1MA to build 80,000 houses in major locations nationwide with the selling price ranging between RM100,000 and RM400,000 per unit. Among the locations are Kuala Lumpur, Shah Alam, Johor Bahru, Seremban and Kuantan.
Why the PR1MA not targeted Penang as one of the location?
Not under BN mah.. Like that also dunno.
Penang out of strategic location in budget year 2013…
I am trying to read between the lines for RPGT, correct or not?
yr/existing/new
y1-10-15
y2-10-15
y3-5-10
y4-5-10
y5-5-10
@et
Yes. U are rite.
Pls act fast to buy property before its really out of hand!
Already very expensive for a decent size condo.
Think of long term plan, u will then find not expensive
what lah..is first 2 years = 15% and subsequce 3 to 5 = 10%…..which increase 5% for 1st year and 10% for 2nd years and 5% from 3 to 5 years.
This is not a positive strategy, but building a timer bomb. 100% loan up to 400k is no sense. It just help the developers to clear their on hand units in faster way and pass down the dept to ppls not actually afford to the price. Meanwhile, who are not affordable trap into the strategy to pay for over price unit. We may see a positive result in next 1-2 yrs, if most of our income can’t reach a high income country. We are soon will see economy crisis again. Those work for ppls, u need to work harder to ask for more pay start from today.
The only way now is UP UP and away….
Foresees the trend in pg is keep on increasing.
It will burst in 2014 till 2016 when most of the properties are ready and Gov will says RPGT is 30%. This is the time bomb for those investors that can’t hold.
i still see many people hanging out at some pub such as library,mois,ss,fuel…cant think that the term of many people cant afford to buy a house.just they donno how to control their saving only.there are still many rich people around, just their cant manage well their income only
@Hoseh??
hanging pubs a lot meaning they are rich? is this that simple?
IRRESPONSIBLE !!! …
practically nothing to curb the ridiculous escalating prices ..
time bomb in the making …
Very childish thinking
@Hoseh??
Comment from rich people…
Nonsense, what it has to do with pub hanging. Its someone private life, and you can see all sort of people spending on different thing every day but remember for those who went to pub are still those who went to colleges and universities. What a immature thinking!!! Sigh**
go out spending those unnessary expenses then claimed that not enough income to buy house?that’s a joke!
@Hoseh??
Wow I bet you are one of those kapchai riding, stingy poker who saved hard and got nice property now on your hands .right ? congrats to you.
But I also know you sure feel angry how come people dare to enjoy life AND complain about property price (not like you) right?
Probably you will live to ripe old age, drive ferrari from your tidy profits, but you know what? got a lot of anger in you about the rest of people not being smart at saving,wasting their money away. You laugh at them but you know what ? I am SURE you still won’t be happy about anything at all in your life, even if you have 10 properties worth 3 million each. And then we will see you sulking away at a kopitiam with your few ringgit kopi telling your woes to the owner
Now, you can see what is good action to against house price…
Increase the housing loan to 400 k and 500K…………..but no action to stop the developer increase the price…….., if increase the loan,that mean the developer still can increase the price again lah……look very beautiful word bu who pay the loan lah…
Look back 15 years ago, the house price is very cheap but now the price is high ….why….
government dont control price like material , developer , foreigner investor and etc…
Noy doing anything at all …..sleep sleep ZZZZZZZZZZZZZZZZ for 15 years
As I know before 15 years ago, the foreigner investor only can buy 1 house and release unlimited to purchase during this 15 year…that why price increase so high…
Now, government still can say that to compare to other country , our house is still cheap lah…very simple answer …….because the currency lah…….but standard living can’t compare to currency …we still low class malaysian after 55…
That is why so many brain drain oversea. I’m one of them to neighbour country.
Hard to against house price. Only can give alternative to ensure people can own a house. This bajet to help people buy affordable house not to help people buy luxurious house.
So what type of house u buy and live at neighbour country now?
developers will build those RM1000 psf price unit at 400 sq ft like HK and singapore size. sell at 400000 rm.
sell to local people. make awesome profit
how gov help developers make profit
, and 100% mortgage, bad credit policies can even loan.
This is worst than the subprime in USA. These people are really crazy.
To curb speculation should be reduce mortage limit, not increase. And these 5% increase in RPGT from year 3 to 5 is no use as the seller would increase the price by 5% anyway.
like me in penang,live in semi-D or terrace?
@Mike
I will move oversea, its easier… the pay is cant affort any house
No hope for penangite. I won’t vote any party anymore, they aren’t really helping the next generation. Now medium earning group are in problem, same goes to our next generation. Cheers, rejoy guys.
If coming Election..opposition still can’t take over the country. I will decide to move to Neighbour country and “invest” back the money.
how can he build 123000 houses with 1.9 billion — do you know what is the average cost of one house == 1,900,000,000/123,000 = 15,447
@Crazy
That is cause he never need to calculate or crack his skull to purchase a house. All is free for him. Hahahaha….
@psy
Condo also. Bought during the lowest peak in 2007
I will not buy landed in Penang due to security although it is a good investment. I buy Condo for own stay and % of house break in is lower than landed. And I need the condo facilities for exercise.
Plus easy to clean for small foot print. Maid is not cheap nowsaday. Rarely have time for spring cleaning if both couple works too. You need to understand new generation have to work. Not many housewives status nowsaday.
Penang affordable house at SP Chelliah
I’m not eligible for affordable house. I wish I can apply but have to give the opportunity for people who really need a home.
@Hoseh??
I spent no more than RM10 per days for my breakfast, lunch, dinner. My breakfast is bread that can last for 3 days, and my lunch is at company canteen, and my dinner is skipped. I didn’t join most of the spending event at karaoke, mall. All my cloth is with me for at least 5 years.Working for 5 years+ and still I can’t affort a 300k house! Mind your words.
@Elmo
Nvm…let them hold while I go work oversea….
@po
Agreed! The problem is not just increase the %. The root of problem still there, I don’t see any good party with good leadership to do the right thing
oversea people like to come here
It’s supply and demand. Stop moaning for more welfare benefits. Soon it will be like uk where the country will go bust for paying too much welfare out.
What to do.If no welfare people will say the government is not concerned. If u give something people will say that just candy for people. hard to delight all people at same time.
The government cannot afford to press the property price down as it will spoil its plan to achieve a high income nation by 2020. If property prices cool down too much it will drag down the overall economic activity in the country. Developers, sub conctractors…..will face difficulties. Bad loans will also rise and banks will further tighten loans to businesses. The spiral effect will destroy BN’s goal to achieve 2020 dream and ruling the country.
At the moment, the government needs to inflate asset classes such as stock market and property. At the same time, cutting subsidies will also help boost prices such as transportation, food…..The cost push(increasing cost of goods and services) and the demand pull (property and stocks) effects will help the government achieve high income nation easier.
It is sorry to say that the government still needs speculators and developers to push up property prices. This can be seen by the ONLY 5% hike in RGPT.
At the other side of the coin, lower to medium income earners will suffer. Therefore, the government proposes to hand out cash to comfort them. Although the cash given may not help solve long term pressure of these people, it may at least pull votes for BN in the coming election.
.
now we have 4 block of housing. Price for mainland
1. Low cost (RM45k & below)
2. Low Medium Cost (RM75k & below)
3. Affordable (RM300K & below)
4. Medium and high cost (above RM300K)
of course government still needs speculators and developers to push up property prices. that is the reason to create 1 more housing block
The increase in real property gains tax (RPGT) in Budget 2013 is too “feeble” and will not be able to reign in surging house prices. The majority of investors who purchase houses for their own stay or for long-term investments would not be affected by this proposal.
Government was serious about controlling the prices of essential items such as cooking oil, sugar, chicken and a host of other essential items but yet on the subject of house price, it has allowed the situation to remain “laissez faire”.
Looking at the figures mentiond, it seems to make no sense. Anybody can shed some light? Or is it suppose to be “if gov cannot convince you, than gov will confuse you…”?
Possibly two outcome will happen sometime in the future (i) supplementary or extra budget table to parliament for more money (ii) Gov will give excuse that all the units cannot be build, possibly citing external factors such as rising cost etc.
” Government will allocate RM1.9 billion to build 123,000 affordable housing units in strategic locations in 2013″
– On average, subsidy/cost per house = 1.9b/123k = 15.4k per unit (is this realistic?somemore mentioned it will be at strategic location, whatever that means…)
“A total of RM500 million will be spent by PR1MA to build 80,000 houses in major locations nationwide with the selling price ranging between RM100,000 and RM400,000 per unit.”
– PR1MA will earned = RM8b (assuming all units priced at Rm100k) to RM32b (assuming all unit priced at 400k) => Come on, for only RM500m, PR1MA seems to be getting too good a deal(profit somewhere between 7b-31b?). And this is suppose be a public housing project to help the poor…..
“Meanwhile RM320 million will be allocated through SPNB to build 22,855 residential units including low and medium-cost apartments, Rumah Mesra Rakyat and Rumah Mampu Milik. SPNB’s housing projects, which will be implemented immediately, include the construction of 1,855 medium-cost apartment units with a built-up area of 850 square feet in Shah Alam and Sungai Buloh. These units will be sold at about RM120,000 to RM220,000 per unit.
– Rm320m/22,855=RM14k per unit ……
You think they can build 123k house within one year? Next year new budget. RM1.9 billion allocated for year 2013. How much being spend for affordable house in 2013? Rest masuk pocket already. Talk for “SONG” only.
What is the average amount of money people/family can save per month in Penang ?
how much down payment is needed for a 300k property
YR-09-10-11-12
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Y1-30-05-10-15
Y2-30-05-10-15
Y3-20-05-05-10
Y4-15-05-05-10
Y5-05-05-05-10