KUALA LUMPUR: The re-introduction of the stamp duty exemption for first-time house buyers is expected to have minimal impact on the overall property market, said RHB Investment Bank Bhd (RHB IB).
In a note today, it said the ongoing market headwinds such as rising inflationary pressure and the weakening of the ringgit have continued to dampen the market sentiment.
“Coupled with the expectation of higher interest rates ahead, potential house buyers may defer their big-ticket items purchase over the next six months.
“Although demand-driven incentive has been reintroduced, cost pressure remains a big concern for developers as building material prices remain at high levels, while labour shortage issues have yet to be resolved,” it said.
As such, RHB IB foresees potential downside risk to developers’ earnings in the coming quarters and maintains a neutral rating on the property sector.
Last Saturday, Prime Minister Datuk Seri Ismail Sabri Yaakob launched the Home Ownership Programme (HOPE), which offers stamp duty exemptions for first-time house buyers on the instrument of transfer and loan agreement under the Keluarga Malaysia Home Ownership Initiative (i-MILIKI).
The exemption is applicable to sales and purchase agreements (SPAs) for properties priced up to RM500,000, and a 50 per cent discount on stamp duties for properties priced from RM500,000 to RM1 million on SPAs signed between June 1, 2022 and December 2023.
Meanwhile, CGS-CIMB echoed the neutral rating on the sector as it noted that the impact of the stamp duty exemption could be limited, given the macro headwinds and less lucrative incentives compared to the Home Ownership Campaign (HOC).
“There is no minimum 10 per cent discount for residential properties under HOPE, unlike the HOC in 2019 and 2020/2021.
“i-MILIKI incentives are applicable to first-time house buyers only, whereas the HOC had a wider coverage,” it said.
The research house said macro headwinds, such as increasing interest rates and inflation could potentially dampen buying sentiment.
“It remains uncertain whether people will purchase big-ticket items during challenging times, despite incentives given, as property prices have more than doubled from 2009,” it added. – BERNAMA
