The top three selling properties for the ongoing Home Ownership Campaign (HOC) 2020/2021 were double-storey terraced houses, serviced apartments, and condominiums, with the majority of them priced below RM750,000.
As at February 28, 2021, total sales for the HOC hit 34,354 residential units worth RM25.65 billion, and this is expected to build up given that there are still two months left for the campaign before its ends this May.
Real Estate & Housing Developers' Association (Rehda) president Datuk Soam Heng Choon said that the HOC had been instrumental in pushing sales through despite the on-going Covid-19 pandemic and Movement Control Order (MCO) imposed by the government in March 2020 to curb the spread of the virus.
The total sales of RM25.65 billion were recorded between June 1, 2020, and February 28 this year. A bulk of the sales achieved were between June and December 2020.
For the total number of units sold, 37 per cent comprised properties ranging between RM500,000 and RM750,000, and 26 per cent were those priced from RM300,000 and RM500,000.
For properties priced RM750,000 to RM1 million, the amount was 19 per cent.
Soam said 78 per cent or RM20.11 billion (28,045 units) of the total sales achieved during the period were for properties still under construction.
The most sellable properties were serviced apartments at 36 per cent, and double-storey terraced houses at 29 per cent.
In the 12 months to December 2019, RM37 billion worth of sales were recorded under the HOC 2019.
Soam said it would be impossible to match the total sales achieved in 2019, given that MCO 2.0 was implemented in January this year and there were very limited or no transactions in that month and also in February.
"If there was no MCO 2.0, we could have achieved higher sales up to February this year. But the situation has improved and sales are coming in after the MCO was eased. The campaign will end in May and we hope the government will extend it," Soam said at a media briefing yesterday.
Soam said the Malaysia Property Expo (MAPEX), which will be held in May, is expected to encourage potential homebuyers to take advantage of the HOC.
The HOC was first introduced in 2019 to stimulate the property buying process and the sale of unsold properties.
By late 2019, Malaysia's property overhang totalled RM41.5 billion with residential properties contributing to 45 per cent of the overhang.
The HOC had been successful in reducing the property overhang value and volume. It was extended until May 2021, as part of the Short-Term Economic Recovery Plan (PENJANA) by the government.
During the HOC, homebuyers get full stamp duty exemption on the Instrument of Transfer for residential properties up to RM1 million and a partial stamp duty exemption (three per cent) for those priced between RM1 million to RM2.5 million.
The stamp duty on the Instrument of Securing Loan will also be exempted for residential properties worth up to RM2.5 million.
The best deal is that every homebuyer will enjoy a minimum of 10 per cent discount off the purchasing price, with some developers offering as much as 30 per cent depending on the property type and location.
Soam unveiled the findings of Rehda's "Property Industry Survey 2H2020 and Market Outlook (1H2021 and 2H2021)" and it showed that 89 per cent of respondents garnered their sales through the HOC 2020/2021.
"At least 87 per cent of the respondents agreed that HOC was effective in clearing stocks," he said.
Soam said there are three programs or incentives that the government can introduce to help homebuyers such as re-introducing the developer interest-bearing scheme (DIBS) in a regulated manner, allow 90 per cent loan margin for the third home purchase, and extend the HOC to December 2021," Soam said.