Budget 2019: Mah Sing wants clarity from Rehda about 10% discount on house prices

PETALING JAYA (Nov 2): Mah Sing Group Bhd will be seeking clarity from the Real Estate and Housing Developers’ Association Malaysia (Rehda) on the commitment it made to the government for its members to provide up to 10% discount on new residential projects.

The move was announced by Finance Minister Lim Guan Eng while tabling the Budget 2019 in Parliament today.

The government announced that Rehda had committed to reduce prices by as much as 10% for houses that are not subject to price controls.

“Following the announcement, Mah Sing will seek clarity from the association on this. We are committed to working together with Rehda and other stakeholders to offer the best for our buyers,” said Mah Sing's group managing director Tan Sri Leong Hoy Kum (pictured).

Mah Sing also welcomed the government’s initiative to set up a national homeownership campaign for completed homes to reduce the property overhang issue in Malaysia.

“With the government’s suggestion to exempt the property transfer letter’s stamp duty for properties between RM300,001 to RM1 million for first-time homebuyers, this will stimulate the property market in the short-term and encourage first-time homebuyers to look for their ideal home, especially those who are looking for ready-to-move-in homes.”

The developer also expects the continuation of stamp duty waivers on sale and purchase agreements and loan agreements for the first RM300,000 of properties priced up to RM500,000 to boost the market.

“It is directly benefit Mah Sing as 74% of our sales target are in this range, while 70% of our buyers are below 40 years old, likely to be first time home buyers.

“We also foresee minimal impact from the 1% increase of stamp duty for property transfers above RM1 million as our exposure to this range is very low, at only 2%,” said Leong.

Meanwhile, the government’s openness to innovative funding options like peer-to-peer lending which will be introduced in 1Q2019 to help buyers own properties is laudable, he added.

Leong said Mah Sing is committed to being one of the first adopters/supporters of this programme once more details are available.