The government can revise property taxes by either extending the exemption of Real Property Gains Tax (RPGT) while the property market is still recovering a property consultant said.
Dr Daniel Gambero, a property consultant adds that the authorities can also extend the exemption on residential homes or revise it further downwards.
“This extension can stimulate the property market by encouraging increased buying and selling of residential homes,” Gambero said.
He says that the government can additionally give an extension of the Home Owners Campaign to the secondary market in selected areas and with a limit of the value of perhaps up to RM600,000 in order to encourage more buyers.
Additionally, this view is supported by PropertyGuru’s Consumer Sentiment Study H2 2021, which states that the extension would help alleviate the struggles of homeowners, otherwise, the RPGT may be an additional burden on households who have been forced to sell their homes as a means to survive.
With the upcoming Budget 2022 to be tabled on October 29, 2021, the government’s support for the recovery and growth of the property sector is crucial, says Gambero.
In regards to the just modified MM2H programme, he urges that the government provide a better revision to make it more attractive to get more foreigners buying properties in Malaysia and, above all, deciding to live here for the greater part of the year. This will also generate positive growth for other sectors in the market.
“It is crucial that the government should really focus on real incentives for businesses from abroad to move their production facilities to Malaysia. This will contribute to generating job opportunities and a higher income for many households and somehow push up the housing demand,” he says.
“Let’s not forget that unsold and overhung properties in the industrial segment of the market is also an additional burden to an already suffering market,” he stresses.
