GEORGE TOWN: Penang house-buyers are looking closely into the issue of location, price and timing of the tax relief announced in Budget 2025.
Accountant Leon Tan, 31, was all set to put down a deposit for the affordable housing unit of his choice, but will postpone it so that he will pay the deposit within the tax relief timeframe.
“At least this will provide me with more time to scout around, as property prices in Penang are still considered steep and location is crucial,” said Leon, who is single.He wanted to buy his first home on the island because he works there and he does not relish the idea of facing the rush hour over Penang Bridge every day if he chooses mainland options.
Leon who lives with his parents, has been shopping for a house of his own.
“I searched many places for a unit priced between RM450,000 and RM500,000 on the island and eventually shortlisted a few,” he added.
Sales executive JC Tan, 33, is also looking at buying her first home in George Town.
“I’ve been searching for the past two years, so another two months to wait wouldn’t be a major setback. With the tax relief helping to lighten my financial concerns for the start, I will have more budget for furniture and to make minor renovations,” she said.In Budget 2025 tabled by Prime Minister Datuk Seri Anwar Ibrahim in Parliament last Friday, home buyers will get tax relief of up to RM7,000 for purchasing residential homes priced up to RM500,000.
Purchasers will also qualify for a tax relief of up to RM5,000 for properties priced between RM500,000 and RM750,000.
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Anwar said the relief can be claimed for three consecutive assessment years on sale and purchase agreements completed between Jan 1, 2025, and Dec 31, 2027.
Penang Real Estate and Housing Developers’ Association (Rehda) chairman Datuk Khoo Teck Chong said the tax relief would assist those aspiring to own their first homes.
“One of our Budget wish list items has always been on improving financial assistance to help first-time buyers and property sellers.
“This tax relief is expected to boost sales of residential properties starting next year and we hope banks would (consider) easing eligibility to financing.
“As first-time buyers often aim for affordable housing projects, this tax relief would suit their needs and further tap into the state’s supply. It will let the market take its own position and when there is such incentive and response from potential purchasers, developers will then angle their marketing and products accordingly,” he added.
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On why property prices are high in Penang, Khoo said this was due to scarcity of land on the island coupled with the rise in cost of construction in recent years.
“Since 2020, construction costs have gone up by about 20%,” he said, adding that developers and the state government are coming up with more affordable housing projects.
Hunza Properties Bhd chief executive officer Datuk Lily Tan said the introduction of the tax relief was timely as the company would be launching several new affordable schemes next year.
“Our aim is to encourage more young people to buy their first homes,” she said.
“With the tax relief helping to lighten my financial concerns for the start, I will have more budget for furniture and to make minor renovations.”JC Tan
