KW Malaysia positive about stamp duty exemption, expected more measures to boost property market

• “Buying is very important right now, be it in the secondary or primary market.”

KUALA LUMPUR (Oct 8): KW Malaysia welcomed the exemption and increase in discount of stamp duties for the purchase of homes announced for Budget 2023 but expected more to stimulate the property market.

“Buying is very important right now, be it in the secondary or primary market. I expected a little bit more but hopefully this will motivate the market to buy up property in the next year,” said KW Malaysia group chief executive officer, Jonathan Lee. (pictured)

The continuation of fully exempted stamp duty for homes valued at RM500,000 and below, and the increase in stamp duty exemptions to 75% for homes valued at RM500,001 to RM1 million were among the highlights of Budget 2023 to spur the property sector.

A 100% exemption on purchasing a house worth RM300,000 will save RM6,500, while a 75% exemption on purchasing a house worth RM750,000 will save RM15,000.

The “surprise” from Budget 2023 for Lee is the RM10 stamp duty for property transfer within direct families. “It is a very good move that will help stir up more transactions.”

As for the 2% tax reduction for income brackets RM50,001 to RM100,000, Lee felt that it will be helpful but “may not be significant enough to spur spending in the real estate segment”.

His advice to homebuyers? “They should do their best to reduce debt and avoid spending needlessly on any form of debt to improve their line of credit (for home loans). It is a great opportunity to look at buying something in this market.”

Lee also comments on the lack of strategic direction on overhang properties and other incentives. Listen to the excerpt here: