The proposed Real Property Gains Tax (RPGT) exemption for Malaysian property owners has caused confusion among those intending to sell their property as the new rates have yet to be gazetted.

National House Buyers Association (HBA) honorary secretary-general Datuk Chang Kim Loong said because of this, property sellers were not able to enjoy the exemption for units sold between June 1 this year and Dec 31 next year.

“The government should look into these details before announcing this initiative.

“Some houseowners sold their properties and signed the sale and purchase agreement with buyers, unaware that the exemption is not applicable yet as it is not gazetted.

“Lawyers should inform their clients about this and advise them accordingly,” he said, adding that RPGT’s rates should be replaced with a more sustainable tax instead.

He said the initiatives, which included the reintroduction of the Home Ownership Campaign (HOC), should ensure that developers offer higher discounts to “off load” unsold stocks instead of the government “bailing” them through waiver of taxpayers’ monies.

“If they (developers) cannot sell it during normal times, it is difficult to understand how they can sell under HOC, unless the new 10 per cent that the government announced is after discounts, sometimes up to 25 per cent, that they would normally give.

“Transparency in price discovery is lacking. Financial institutions seem to be aware of the discounts and rebates, but how these have been translated into loans is not known.”

Chang said the government should let the market play its role with the banking sector sticking to real prices, adding that greater accountability must be enforced on developers to account for selling prices, discounts and rebates.

He said an initial grant to first-time house buyers should be offered to enable them to buy affordable houses.

“This could attract a larger number of people to buy houses and resolve the housing shelter problem. First-time house buyers can also be assisted by waiving the stamp duty for their first unit (instead of restricting it to houses priced between RM300,000 and RM2.5 million).

“The government could be more specific in the reintroduction of HOC. Developers who are holding properties not sold but completed with CC (Commencement Certificate) or OC (Occupancy Certificate) for more than three years can be supported by HOC. And whatever benefits or waiver should include secondary market sales, too, and not just developer’s products (primary market).”

Chang said HBA reiterated the need to have all loans, whether from the primary or secondary market, to be supported with an independent detailed valuation report for checks and balances. This, he said, would ensure that bankers lend to houses on market value for the property and not on “fictitious prices” as unilaterally stated in sale and purchase agreements.

Real estate expert Siva Shanker said there was no clear measure how the property market would react to the initiatives because the recession was caused by an unforeseen circumstance — a virus and lockdown — and people were not willing to spend much, except on food and some items online.

“The initiatives under Penjana (economic stimulus package) can ease the burden of the average people, including in buying houses. The bank loan moratorium, which took effect in June, was the single biggest assistance given to ordinary men on the street, even if it was only for six months.”

Siva said problems in the property sector included overhang and a spike in prices, which were driven by real estate speculation, which promised high returns to buyers.

He said while the market for landed properties like terrace houses remained solid, the same could not be said for high-rise residential units.

The government will provide stamp duty exemption on the instruments of transfer and loan agreement for the purchase of residential homes priced between RM300,000 and RM2.5 million.

An RPGT exemption will be given to Malaysians for the disposal of residential homes between June this year and Dec 31 next year.

Source: NST Online

A small landed residential development proposed by SY Ong Architect at Bagan Jermal in Butterworth. Located along Jalan Melur, this development is only a mere minutes drive to Econsave and Tesco Bagan Ajam. It is surrounded by an abundance of amenities with easy access via Jalan Raja Uda.

While it is still pending for approval, this project is expected to feature 18 units of 3-storey terrace houses with spacious design and layout. More details to be available upon official launch.

Project Name : (to be confirmed)
Location : Butterworth
Property Type : Terrace
Tenure : Freehold
Land Area: (to be confirmed)
Built-up Area: (to be confirmed)
Total Units : 18
Indicative Price: (to be confirmed)
Architect: SY Ong Architect
Developer : (to be confirmed)

Location Map:

Fronting the scenic waterfront of Persiaran Bayan Indah near Queensbay Mall, with sparkling azure seas and sandy beaches as your neighbour, life here will a wonderful microcosm of endless choices.

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Arrive in grand style every time you return home. The magnificent lobby area similarly connects to two private lifts that offer direct access to units for both convenience and privacy.

Units’ interiors – from the living room to bedrooms, kitchen and balcony are all meticulously designed to flow aesthetically and suit the needs of modern home-owners.

Some units come with an innovative dual keys concept. Essentially two homes in one, they are great for families who can use one for their own stay and the other for elderly parents or close relatives. Alternatively, they could be rented out.

The facilities here would rival even 5-star resorts. Atop the podium are leisure, sky and children’s pools, Jacuzzi, with accompanying cabanas, and pooldecks with lounge.

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QuayWest has strategic location at the fastest growth south of the island surrounded by the commercial centre and shopping malls (Queensbay Mall). It also situated in a matured neighbourhood with excellent amenities. There is a hotel and food court a short walk away, while various malls, shops and other facilities can be reached via a short drive.

Being in the middle of both Penang bridges, residents have ease of access to the mainland, while the world renowned city of George Town is just down the coastal expressway.

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Why buying QuayWest Residence?

• Low selling price psf
• Low maintenance fees
• 2 Private Lift direct to house with better privacy (Tower A)
• Spacious Layout @ Living/Dining area & Yard
• Sky Bungalow Design
• Extra Room number
• Rooftop Infinity Lap Pool
• Various facilities for families and kids, comfortable & greenery environment and style
• Super high-end condominium
• Matured Township

PROJECT LOCATION

The Government through the National Economic Recovery Plan (Penjana) 2020 has lined up several initiatives to rejuvenate the property market and address the lack of affordable housing particularly for the youth.

According to the Ministry of Housing and Local Government, the initiatives included home ownership campaign (HOC) 2020 whereby housing developers accord house buyers stamp duty exemption and incentive in the form of at least 10% discount on the sale price.

In addition, it said the exemption of real property gains tax (RPGT) which is tax levied upon profit from the sale of property, and current tax reduction could stimulate the national housing market.

“The RPGT exemption is given to Malaysian citizens upon disposal of residential property, limited to three houses per individual, from June 1, 2020 until Dec 31, 2021,” the ministry said in a written reply at the Dewan Rakyat yesterday.

It was responding to Datuk Seri Mahdzir Khalid (BN-Padang Terap) who wanted to know about the ministry’s efforts to overcome the lack of affordable housing to meet the people’s needs, especially the youth, considering that the increase in house prices does not match household income, and how far the Covid-19 pandemic has affected market prices.

Further, it said the financing limit for housing loans which is the financing limit ratio offered by financial institutions for property borrowers who have two or more existing housing loans is subject to borrower risk management.

“Under Penjana, the financing limit for the third and subsequent home loans worth RM600,000 and above during the HOC 2020 period is no longer subject to 70% of the value of the house but subject to the internal risk management of financial institutions,“ it said.

On the effect of Covid-19 on house prices, the ministry said it does not have the precise information at the moment.

It said based on the Advertising Permit and Developer’s Licence registration record, the developer application trend is the same as in previous years without any decrease in developer’s licence applications.

However, it said there was a reduction in residential property transactions of 19% to 47,000 in 2020 compared to 56,000 in 2019, new licence applications totalled 263 (2020) in the first quarter compared to 256 (2019), and first-quarter licence renewal of 603 (2020) compared to 465 (2019).

The ministry attributed the reduction in residential property transactions to housing developers being unable to carry out sale campaigns; limited marketing approaches; and buyers being cautious in making financial commitments.

However, if looking at the trend in previous years, transactions in the first quarter were certainly less than in the previous quarter. In conclusion, programmes and schemes under the ministry as well as the government initiatives through Penjana may help revitalise the housing industry as well as meet the people’s housing needs including the youth,” it said.

Responding to a question from Lim Lip Eng (DAP-Kepong) on the government’s housing initiative to help new markets and secondary markets including foreign buyers during the economic crisis due to the Covid-19 pandemic, the ministry said the matter lay with the state governments.

“The initiative to sell houses to foreigners can be referred to the respective state governments as the prices, quotas and construction for housing including affordable housing and real estate are determined by them,” it said.

Source: Bernama

Penang has again topped the list of approved manufacturing foreign direct investments (FDI) for the first quarter of this year (1Q2020).

The state recorded a promising RM6.8 billion in approved manufacturing FDI for the period of January to March this year. Last year (the entire year), Penang took pole position in terms of approved manufacturing FDI after it attracted RM15 billion.

Chief Minister Chow Kon Yeow said the approved manufacturing FDI in the state accounted for 96% of Penang’s manufacturing investment inflows in 1Q2020.

“The remaining 4% or RM321.1 million were approved manufacturing domestic direct investments (DDI).

“I am pleased to note that Penang is a major contributor towards the country’s FDI.

“We contributed 64% share in Malaysia’s total FDI. The state plays a crucial role in driving Malaysia’s participation in the global supply chain.

“We are thankful for the strong confidence placed in us by the multinational corporations,” Chow told a press conference at his office in Komtar today.

Chow revealed that the top manufacturing FDI for the first quarter of this year were from Switzerland, the United States and Singapore.

He said that Penang received remarkable investments such as projects from Dexcom and LEM International.

Chow also spoke about Penang’s RM7.1 billion in total approved manufacturing investments (FDI and DDI) for 1Q2020 amidst the challenging global macroeconomic environment.

“We successfully garnered 32 manufacturing projects in 1Q2020, which are expected to create 4,035 new job opportunities in Penang.

“The state’s RM7.1 billion in total approved manufacturing investments represents 42% of Penang’s full year (2019) approved manufacturing investments.

“The machinery and equipment, scientific and measuring equipment (which include medical devices) as well as the electrical and electronics industries collectively constituted 95% of the state’s total approved manufacturing investments for 1Q2020.

“This encouraging investment performance for 1Q2020 exceeded our expectations,” he said.

Chow said, nevertheless, Penang expected the 2020’s investment inflow to the state to be lower than the 2019’s all-time-high of RM16.9 billion.

“We are mindful that the global FDI outlook is on a downtrend until at least 2021, and that the public health challenges will persist in the near future.

“The Penang government will remain vigilant in our efforts to attract high-quality and high-technology investments,” Chow said.

He added that the state government, through investPenang, Penang Development Corporation (PDC) and other relevant agencies, is committed to assist investors and to facilitate project implementations on the ground.

He also thanked the Federal Government agencies such as Malaysian Investment Development Authority (Mida) for working hand-in-hand with investPenang in attracting high-quality investments to the state.

Datuk Seri Lee Kah Choon, the special investment advisor to the Chief Minister, said the Penang government has been very supportive towards attracting investors to the state.

“The RM7.1 billion in total approved manufacturing investments for 1Q2020 is the fruit of our work since 2019 – a ‘flow over’ from 2019 to 2020,” he said.

Source: Buletin Mutiara