Property News Malaysia: Reinstate Home Ownership Campaign
HOC, do you stil remember this word?
Home Ownership Campaign (HOC) was a government initiative to drive home ownership for prospective homeowners who could save from stamp duties when they purchase a property between the price range of RM300,000 ro RM2.5 million. It ended in 2021. HOC helped the market to reduce the total overhang properties too and at the same time, property developers were also providing discounts to the property price. Below shows the numbers from Napic on the state of overhang properties in Malaysia over the past few years. Good sign by the way.
In general, this helps in making property prices more affordable. It’s hard to say it drove property prices downwards but it’s definitely a big savings to homebuyers as the stamp duty is an additional cost on top of the home price too.
Let’s hear what some property industry people are saying ahead of Budget 2024.
Article in nst.com.my
Article in nst.com.my Malaysian real estate stakeholders hope that the government will include additional measures in Budget 2024 to assist developers, support homeowners, and strengthen the middle class, with a focus on housing affordability. The reinstatement of the Home Ownership Campaign (HOC) is at the top of their priority list.
Juwai IQI co-founder and group chief executive officer Kashif Ansari said that the latest figures show that HOC has helped families save RM15.8 billion over what they would have paid otherwise for 117,538 HOC homes. He said, “Total HOC sales added up to RM92.5 billion as of July 2022. By any measure, HOC has been a success and helped more than 100,000 families set themselves on the path to financial independence.”
Tan Sri Lim Hock San, executive chairman of LBS Bina Group Bhd said that the HOC’s effectiveness from 2019 to 2021 was well documented. As a result, reintroducing it would boost demand, encourage homeownership, and provide more options and affordability to prospective buyers. Article in nst.com.my
Yes, I thinK HOC should come back, just need to be targeted
Well, I think HOC should make a comeback since many Malaysians are still without a property to their name and we should help them as much as possible. Here’s why: Without property, then it’s poverty However, I disagree if it’s just a blanket one for everyone. Truth is, the property investors would quickly grab this opportunity and benefit from it while the ones who are still deciding may still be thinking about it. In the end, the transaction numbers may not reflect the purchase from just the ones who need it the most but the ones who knows the most.
See you soon HOC, after Budget 2024. Well, I hope someone in Finance Ministry reads this article too. Especially from someone now from the industry but just representing the working Malaysians.
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