KUALA LUMPUR: The Association of Valuers, Property Managers, Estate Agents and Property Consultants in the Private Sector (PEPS) hopes that the government will extend the exemption from real property gains tax (RPGT) to all segments, including expatriates and foreign companies.

It highlighted that the property industry is plagued by numerous complex issues, including oversupply, particularly in the office, retail, and service apartment sectors.

The RPGT waiver for real estate disposals beginning in the sixth year currently applies only to Malaysian citizens, permanent residents, and Malaysian corporations.

PEPS suggested that the government review the conditions of the Malaysia My Second Home (MM2H) programme to make it more appealing for foreigners to buy properties in order to reduce property overhang issues.

PEPS also emphasised the difficulties that many Malaysians still face when purchasing a home, owing to rising housing loan interest rates and a stagnant economy.

The association proposed that the government promote the rent-to-own (RTO) scheme, which would apply to PRIMA homes where there is an oversupply.

The RTO will provide an opportunity for the B40 (bottom 40 per cent) income group to own homes for the first time as part of its wishlist for the upcoming 2024 Budget.

The tenant can exercise the option to purchase the house at a predetermined price at the end of the fifth year.

PEPS also suggested that Bank Negara Malaysia establish a revolving fund for commercial banks to use in order to work with developers to purchase unsold house units at a discount and for commercial banks to finance the home buyer for five years.

It also suggested that the government provide a one-time grant of RM25,000 to assist first-time home buyers of overhang properties with initial deposits.

There were 54,844 unsold residential units under construction in the first half of 2023, and 26,286 completed and unsold residential units worth RM18.30 billion.

Other key proposals advanced by PEPS addressed the Industrialised Building System (IBS).

PEPS urged the government to extend IBS incentives to property developers and promote the model as an alternative to traditional construction methods, particularly for affordable housing.

"The adoption of the IBS model in construction will also help to reduce the current pressure on labour shortages," it said.

The government has only given incentives to manufacturers of IBS building components since 2021 Budget.