The exemption of stamp duty on purchases of property took effect on March 28 this year and only apply to properties which have been completed and purchased from registered developers through the Housing Developers Association of Malaysia, Sabah Housing Developers Association or Sarawak Housing Developers Association, said Deputy Finance Minister Datuk Chan Kong Choy.
These properties would have a certificate of practical completion. The incentives to reduce the property overhang in the market is part of the government's RM3bil stimulus package to boost the economy while cushioning the anticipated effects of the US-led slowdown which would effective on 28 March 2001 and ends at 31 December of 2001.
The types of property eligible for exemption include residential homes, condominium units, apartments and low-cost flats, office lots including shop houses and shop offices and industrial property including factories and the government hopes it would lower the current overhang properties by 10% to 15% worth RM4 billion, added Datuk Chan Kong Choy.
The following will be the announcement made by our Prime Minister Datuk Seri Dr. Mahathir:
Government's Announcement on Reducing Property Overhang
Wed, March 27, 2001
To help reduce excess stocks in the property market, in particular residential units, incentives provided during the Housing Campaign will be reinstated for this year with immediate effect. These incentives include the exemption of stamp duty, waiver of processing fee and higher margin of financing;
To discourage further addition in property stocks, local authorities will be directed not to approve any new construction of office and commercial space in view of the existing large property overhang; and
Changes will be made with regard to the Foreign Investment Committee's (FIC) rules and regulations pertaining to foreign equity as well as property and asset acquisition by foreigners. This is to provide a more liberal environment for foreign investors and the inflows of FDI. An announcement on the changes will be made very soon (Click here for new FIC Guidelines).
Reducing Property Overhang Exemption of stamp duty: