News & Articles 2025 Budget: Reintroducting HOC could strengthen the property sector
2025 Budget: Reintroducting HOC could strengthen the property sector
17 Oct 2024
KUALA LUMPUR: THE Home Ownership Campaign (HOC) and Madani Deposit Scheme are the two high-impact proposals that could strengthen the property sector if they are implemented, CIMB Securities said.
The Ministry of Housing and Local Government (KPKT) is pushing for the Madani Deposit Scheme as a tool to help young people buy their first homes.
Targeting youths aged between 21 and 40, it represents one of 33 proposals forwarded by KPKT for consideration under the 2025 Budget.
The maximum threshold under the Madani Deposit Scheme is RM30,000 for homes priced not more than RM500,000.
While additional details remain unclear at this juncture, CIMB Securities said the housing grants under this scheme may be limited to controlled-priced affordable housing.
"To this end, a detailed study should be conducted to ascertain the supply and demand for affordable housing. This is crucial to determining market-clearing prices for affordable housing and its appropriate location," it added.
CIMB Securities said residential affordability issues remain a central theme for the property sector heading into Budget 2025.
The Real Estate and Housing Developers Association (REHDA) is hoping that the 2025 Budget will provide more incentives for developers to continue building affordable housing.
REHDA recommends a reduction in development charges, a lower land conversion premium, and an exemption from utility contribution charges.
Mah Sing Group Bhd is advocating the return of HOC and views the incentives given under the campaign as pivotal in assisting first-time home ownership and reducing the property overhang situation.
The incentives include a 100 per cent stamp duty exemption for properties priced from RM300,001 to RM1 million and a 10 per cent discount for first-time homebuyers.
"The return of the highly-popular HOC, coupled with the right incentives, could lead to a further reduction in the number of unsold properties.
"By lowering the initial financial barrier, the latter (Madani Deposit Scheme) would bolster the upfront affordability of first-time homebuyers, especially among the B40 and M40 segments," CIMB Securities said.
Meanwhile, the South China Morning Post (SCMP) reported that the revamped Malaysia My Second Home (MM2H) visa scheme is drawing fresh interest from China's wealthy youth.
"It remains to be seen if this would translate into real applications under this programme," CIMB Securities said.
The Ministry of Housing and Local Government (KPKT) is pushing for the Madani Deposit Scheme as a tool to help young people buy their first homes.
Targeting youths aged between 21 and 40, it represents one of 33 proposals forwarded by KPKT for consideration under the 2025 Budget.
The maximum threshold under the Madani Deposit Scheme is RM30,000 for homes priced not more than RM500,000.
While additional details remain unclear at this juncture, CIMB Securities said the housing grants under this scheme may be limited to controlled-priced affordable housing.
"To this end, a detailed study should be conducted to ascertain the supply and demand for affordable housing. This is crucial to determining market-clearing prices for affordable housing and its appropriate location," it added.
CIMB Securities said residential affordability issues remain a central theme for the property sector heading into Budget 2025.
The Real Estate and Housing Developers Association (REHDA) is hoping that the 2025 Budget will provide more incentives for developers to continue building affordable housing.
REHDA recommends a reduction in development charges, a lower land conversion premium, and an exemption from utility contribution charges.
Mah Sing Group Bhd is advocating the return of HOC and views the incentives given under the campaign as pivotal in assisting first-time home ownership and reducing the property overhang situation.
The incentives include a 100 per cent stamp duty exemption for properties priced from RM300,001 to RM1 million and a 10 per cent discount for first-time homebuyers.
"The return of the highly-popular HOC, coupled with the right incentives, could lead to a further reduction in the number of unsold properties.
"By lowering the initial financial barrier, the latter (Madani Deposit Scheme) would bolster the upfront affordability of first-time homebuyers, especially among the B40 and M40 segments," CIMB Securities said.
Meanwhile, the South China Morning Post (SCMP) reported that the revamped Malaysia My Second Home (MM2H) visa scheme is drawing fresh interest from China's wealthy youth.
"It remains to be seen if this would translate into real applications under this programme," CIMB Securities said.
Source: NST.com.my