In order to control excessive speculative activities in Malaysia
Real Estate, the Government will implement the following steps : -
Review Real Property
Gains Tax (RPGT)
For Malaysian citizens, Properties disposed within the holding
period of
Up to 3 years : 30% on
the gains
Up to 4 years : 20% on the gains
Up to 5 years : 15% on the gains
Up to sixth and subsequent years, no RPGT is imposed on
citizens, whereas companies are taxed at 5%.
For non-citizens, properties disposed within the holding period
of
Up to 5 years : 30% on the gains
6th and
subsequent years : 5% on the gains.
Review of minimum
price of property that can be purchased by foreigners
Increase the minimum price of property that can be purchased by
foreigners from RM500,000 to RM1,000,000
Increase transparency
in property sales price
Property developers will have to display detailed sales price
including all benefits and incentives offered to buyers such as exemption of
legal fees, stamp duty, sales agreements, cash rebates and free gifts
Abolish Developer
Interest Bearing Scheme (DIBS) and related
Prohibit developers from implementing projects that have
features of Developer Interest Bearing Scheme (DIBS), to prevent developers
from incorporating interest rates on loans in house prices during the
construction period. Therefore, financial institutions are prohibited from
providing final funding for projects involved in the DIBS scheme.
Increase home
ownership at affordable prices
An estimated 223,000 units of new houses will be built by the
Government and the private sector in 2014. The Government will allocate
RM578mil to the National Housing Department (JPN) for the implementation of
Program Perumahan Rakyat for 16,473 housing units. In addition, JPN will
construct 600 units for Program Perumahan Rakyat Disewa and Perumahan Rakyat
Bersepadu with an allocation of RM146mil.
PR1MA will provide
80,000 housing units
PR1MA will provide 80,000 housing units with an allocation of RM1bil.
The sales price of PR1MA houses are 20% lower than market prices. Meanwhile,
SPNB will build 26,122 units of affordable houses, comprising 15,122 units of
affordable houses, 3,000 units Rumah Idaman Rakyat and 8,000 units of Rumah
Mesra Rakyat. The Government will introduce a new category of Rumah Mesra
Rakyat, with sales price between RM45,000 and RM65,000 for which the Government
will provide a subsidy between RM15,000 to RM20,000 per unit.
Private Affordable
Ownership Housing Scheme (MyHome)
The Government will also introduce the Private Affordable
Ownership Housing Scheme (MyHome) as a step to encourage the private sector to
build more low and medium-cost houses. The scheme provides a subsidy of
RM30,000 to the private developers for each unit built. Among the criteria for
the scheme are:
Developers are to build at least 20% low-cost houses (800sf) at
45k and 20% medium-cost houses (1000sf, 3-bed 2 bath) at 170k in a housing
project
Provide parking, surau, hall and recreational park
First-time home buyers
Open to first-time buyers with a monthly household income of
RM3,000 for low-cost houses and a maximum of RM6,000 for medium-cost houses.
Low and medium-cost
houses
Preference will be given to developers who build low and
medium-cost houses in areas with high demand and limited to 10,000 units in
2014. The scheme is for housing projects approved effective from 1 January 2014
with an allocation of RM300mil under the supervision of Ministry of Urban
Wellbeing, Housing and Local Government.
PR1MA housing projects
PR1MA housing projects, housing in newly opened areas and
1Malaysia Civil Servants’ Housing Programme are eligible to apply for grants at
10% of the project cost, from the Facilitation Fund. For 2014, the Government
will provide a total of RM4bil to the Facilitation Fund as an initiative to
promote private, high-strategic impact projects.
RM1bil is allocated to the Housing Facilitation Fund under
Public Private Partnership Unit (UKAS). Developers who receive this grant must
abide by the terms and conditions as well as the sales prices which are set by
the Government.
Refurbishment program
for low-cost housing
The Government will also carry out a refurbishment program and
improve comfort and beautify government-owned low-cost housing. Among the
measures to be implemented include lift maintenance, repainting the house,
cleaning up drains and landfill space and repair playgrounds.
A sum of RM100mil will be provided to 1Malaysia Maintenance Fund
under the Ministry of Urban Well-being, Housing and Local Government. The
Government will also allocate RM82mil to rehabilitate 20 abandoned housing
projects involving 8,197 houses.
The establishment of the National Housing Council
The Government will implement a more effective and comprehensive
approach with the establishment of the National Housing Council to develop
strategies and action plans in a holistic manner; coordinate legal aspects and
property price mechanism; and ensure provision of homes in a more efficient and
expeditious manner. The Council members will comprise Federal Agencies, State
Governments, the National Housing Department, PR1MA, SPNB and the private
sector.
