Budget 2023 For The Real Estate Sector
What’s going on here?
The national budget unveiled a total expenditure of RM372.3 billion in 2023, where the allocation is spread to RM272.3 billion for operating expenditure, RM95 billion for development expenditure and RM5 billion for the Covid-19 Fund.
What does this mean?
For the real estate sector, buyers of houses priced between RM500k and RM1 million will enjoy an increase in stamp duty exemption from 50% to 75% until Dec 31, 2023, while first-time homebuyers will continue to enjoy the 100% stamp duty exemption for properties priced RM500k and below through i-Miliki Initiative until 2025. RM3 billion is allocated for the Housing Credit Guarantee Scheme to help those without fixed incomes to secure housing loans. The transfer of properties between families is subject to a stamp duty of only RM10.
Why should I care?
While industry players welcome the increased exemption of stamp duty which will encourage first time home buyers from the middle-to-upper income group, they also call for an extension to all buyers to create a bigger boost to the residential sector.
[Image source: Photo by Towfiqu barbhuiya]