Home Ownership Campaign (HOC) was counted upon by the government to help reduce the overhang of properties in the country. Somehow, many were skeptical in the beginning and that includes me as well. Then it was made known that the buyer need not to be a first-timer. Suddenly I think that this might just work, better. Okay, results as at 13th September 2019 seems to indicate that success is a good description for HOC. It has “actual sales” of 19,784 units and they are priced from RM300,000 to RM2.5 million. Total sales is already over RM14 billion. This is as per the announcement by the Real Estate and Housing Developers’ Association Malaysia (Rehda).
Article in edgeprop.my here. REHDA president said this about the near 20,000 homes. “These are actual sales, not developer’s calculations. The buyers have already gotten their loans and need certification from us for stamp duty exemption.” He also shared that REHDA only captured HOC transactions priced between RM300,000 to RM2.5 million. Under the campaign, a certification for stamp duty waiver is issued to the buyer to be eligible for the waiver offered by the government.
He added, “We never captured those [priced] below RM300,000 because they don’t have to come to us and obtain the certification. So we don’t take record of those homes.” Thus, the total number of homes sold including those below RM300,000 could be higher. Our Finance Minister Lim Guan Eng had announced that stamp duties on sale and purchase agreements (SPA) for properties priced up to RM1 million and for loan agreements of up to RM2.5 million for properties offered under the will be waived. Please read on for more details about the HOC and the market confidence. Article in edgeprop.my here.
The target at the very beginning was just RM3 billion yeah. So, the current number is many times higher than what was targeted. Lets not question if the target was too low. Its better to focus on two very important issues instead. First is whether the final overhang numbers by the end of 2019 will actually show a dip when compared to end of 2018. Second would be whether the overall transaction numbers for whole of 2019 will actually show an increase over whole of 2018. Remember yeah, 2018 actually showed an increase over the whole of 2017 which indicated a turnaround from many years of negative growth in property transactions. Image for reference yeah, by NAPIC earlier. Happy believing.
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