Home Ownership Campaign (HOC) 2019 is an initiative announced by the Minister of Finance, YB Mr Lim Guan Eng, during the tabling of Budget 2019 last November whereby Malaysian house-buyers will be exempted from stamp duties for purchase of residential units made between January to June 2019. Developers will also offer attractive discounts and packages for house purchases made during the period. HOC is open to all home buyers to encourage property ownership and stimulate the Home ownership Campaign.
Conditions for Registration of Residential Properties for Purpose of Stamp Duty Exemption
- Stamp duty exemptions are given for residential properties which are sold during the period between 1 January 2019 to 31 December 2019.
Eligibility for Exemption
- Only ‘residential properties’, defined as houses, condominium units, apartments and flats including service apartments built and used as dwelling houses – with valid Developer’s Licence (DL) and Advertisement and Sale Permit (AP) or CCC (where applicable) are eligible to register, all other property types are not included in this exercise;
- The service apartment must be for residential use only and cannot be converted for commercial activities;
- Property prices : RM300,001 to RM2.5 million (before discount);
- It must be a sale from a developer to a purchaser or co-purchasers, all of whom are Malaysian citizens;
- The stamp duty exemptions are applicable for the purchase of residential unit/s for Sale & Purchase Agreement executed between 1 January 2019 to 30 June 2019;
- A minimum of 10% discount (from selling price) is applicable to all units that are not subjected to government price control.
- Eligible properties in Peninsular Malaysia must be registered with REHDA Malaysia. Eligible properties in Sabah and Sarawak must be registered with SHAREDA (shareda.com) and/or SHEDA (www.sheda.org.my) respectively;
- The stamp duty exemption is applicable to the following in relation to the purchase of residential property by an individual Malaysian citizen:
Instrument of transfer
House Price for first RM100,000 = Exempted
RM100,001- RM500,000 = Exempted
RM500,001 – RM1,000,000 = Exempted
RM1,000,001 – RM2,500,000 =3%
Instrument on securing Loan are exempted up to RM2.5 mil
*HOC 2019 is an initiative by the Government to address the property overhang issue in the country, and to further stimulate the housing sector. As such, the Government offers stamp duties exemptions on Instrument of Transfer and Instrument on Loan Agreement.
*The Campaign is open to ALL Malaysian individuals.
*The Sale and Purchase Agreement (SPA) must be signed within the Campaign period.
*Exemptions are applicable only for residential properties (including serviced apartments) that are completed or under construction, and governed by the Housing Development Act with valid developer’s license (DL) and advertisement and sales permit (AP) and/or Certificate of Completion and Compliance (CCC).
*Only residential properties in the primary market are eligible for the stamp duties exemptions, thus sale must be from a developer to a purchaser.
*A minimum 10% discount must be given by the developer, provided that the residential units are not subject to Government price control.
*The discount is given based on approved APDL pricing and must be reflected in the SPA.Eligible properties in Peninsular Malaysia must be registered with the Real Estate and Housing Developers’ Association (REHDA) Malaysia, while eligible properties in Sabah and Sarawak must be registered with Sabah Housing and Real Estate Developers Association (SHAREDA) and Sarawak Housing and Real Estate Developers’ Association (SHEDA) respectively.