WORLD WATCH
A Holistic view
on the secondary property market
Compiled and edited by John Tyler
Knight Frank Malaysia Residential Agency suggests solutions to this issue
Various incentives have been announced
for the purchase of properties at the
primary market, but not so for the
purchase of properties at the secondary
market. This story is looking at the
challenges the secondary market is
facing and what can be done to solve
these challenges. Who better to consult
about this matter than the ever-reliable
Knight Frank. Here are the insights
gathered from Knight Frank Malaysia
Residential Agency:
Looking at the house buying trend
in Malaysia, are there more people
buying from the primary or the
secondary market? Why?
We are unable to access data on the
composition of primary / secondary
transactions.
In the Klang Valley, where are the
popular areas for the secondary
market? Why?
Refer to Question 7 for general
commentary.
Most incentives announced are for
the primary market. What incentives
do you think should be given for
the purchase of properties at the
secondary market?
The Home Ownership Campaign
(HOC), which ended 31 December 2019,
has been revived under the country’s
recently announced RM35 billion
Short-Term Economic Recovery Plan
(PENJANA). Effective 1 June 2020 till
31 May 2021, stamp duty exemptions
will be provided on the instruments
of transfer and loan agreement for the
purchase of residential units priced
between RM300,000 and RM2.5 million
and limited to the first RM1 million of the
home purchase price.
In addition, the 70% margin of financing
limit applicable to housing loan for the
third property, will be uplifted during
the period of HOC, subject the financial
institution’s risk assessment.
These incentives under the revived
HOC, indeed, are focused on the
primary market.
In terms of the secondary market,
the initiative is in the form of RPGT
exemption for disposal of residential
property (limited to three properties
per individual) from 1 June 2020 to 31
December 2021. By reducing the cost
of property disposal, this incentive will
encourage motivated vendors to sell
/ provide savings to vendors affected
by the Covid-19 pandemic who need to
liquidate their assets.
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