The Home Ownership Campaign (HOC) 2020 - 2021 is an initiative by The Honorable Tuan Lim Guan Eng, Minister of Finance to promote home ownership in Malaysia. The campaign is expected to run for a limited time only, and during this period a series of incentives are being introduced to encourage house purchases. The key real estate associations such as Sabah Housing and Real Estate Developers Association (SHAREDA), Real Estate and Housing Developers Association (REHDA) and Sarawak Housing and Real Estate Developer Association (SHEDA) are tasked to execute the campaign and create awareness for the public.
Following a tremendous response, the government has announced that the Home Ownership Campaign (HOC) period will end on December 31st 2021.
- Developer are required to offer a minimum discount of 10% from its APDL (Advertising Permit and Developer License) approved price.
- 100% stamp duty exemption on the instrument of tranfer for residential units valued at RM300,001 to RM1 mil. For units ranging from RM1,000,001 to RM2,500,000, buyers will only pay 3% stamp duty.
- 100% stamp duty exemption on loan document for property valued upt to RM2.5 million.
- Major banks are offering special home loan package in conjunction with the campaign.
- Sabah Law Society granted a discount of up to 25% on legal fees for all HOC eligible projects in Sabah.
Really, all Malaysians are eligble. It is not only open to first time home buyer, but also to investors who have multiple properties. However, foreigners are not entitled to the HOC incentives, that includes joint name properties where one of the owner is a foreigner
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COVID-19 pandemic and the subsequent Movement Control Order (MCO) took a heavy hit across all sectors in Malaysian economy. In order to strengthen the nation's economy, the Prime Minister introduced the Short-Term Economic Recovery Plan (PENJANA) during his speech on 5th June 2020. The Home Ownership Campaign covered registered residential properties with a value between RM300,000 and RM2.5 million. Those properties must be registered with Sabah Housing and Real Estate Developers Association (SHAREDA), in Sabah.
The Home Ownership Campaign 2020 - 2021 aimed to encourage home ownership with few key incentives. Stamp duty exemptions are given for residential properties which are sold during the period between 1 June 2020 to 31 December 2021. HOC 2020 - 2021 was amongst the many initiatives that were reintroduced. Those incentives are:
1. Full stamp duty exemption up to RM1 million
2. Partial stamp duty exemption up to RM2.5 million
3. Exemption on stamping fee for Instrument of Loan amount covers 0.5% of the loan agreement.
4. 10% house discount, except those subject to government price controls (including Sabah).
Out of the RM3 billion residential properties had registered with SHAREDA for HOC 2020 - 2021, RM492 Millions was sold for the first 10 months. We hope the public can capitalise on this opportunity to own their home. We also hope the final figures could reach RM 600 million when the campaign ends on 31st December 2021.
We also found that 63% of the HOC sales were recorded in the recent 4 months starting from December 2020. This is obviously because the public can move around borders and districts followed by the announcement of EMCO (Enhanced Movement Control Order) in Sabah, on 7th December 2020. Sales activities were able to be carried out and advertisement was broadcasted more efficiently.
Topographically 48% units of these residential properties were sold in the East Coast of Sabah, meanwhile 52% units were sold in the West Coast of Sabah.
SHAREDA also found that 37% of units sold are non-landed residential properties, 63% of units sold are landed residential properties which dominated the market.
In conclusion, the property market is rebounding strongly for the past 3 to 4 months. HOC had also proven to be effective as a stimulus to the economy. We hope the government will consider extending HOC further to benefit the rakyat.
Benny Ng
Council Member/Sabah Organising Chairman - Home Ownership Campaign (HOC) 2020 - 2021