Impact NEUTRAL

Measures

• 75% stamp duty exemption (from 50% prior) for houses worth RM500k to RM1m for first time home buyers.

• Program Perumahan Rakyat (PPR) to provide RM367m new projects in Marang Terengganu and Arau, Perlis to benefit 12,400 new residents.

• Program Rumah Mesra Rakyat to build 4,250 units for RM358m.

• RM3b government guarantee through Syarikat Jaminan Kredit Perumahan (SJKP) for housing loans to the gig economy.

• RM290m for lift maintenance at low and medium cost housing.

Comments

• The additional 25% stamp duty exemption for houses worth RM500k to RM1m allows first-time home buyers to save an additional RM2.8k to RM7.1k. We find such savings amount marginal as it accounts for <1% over the total house price. Hence, we are neutral and think that such measure is insufficient to incentivise first-time home buyers.

Beneficiaries

• Most developers under our coverage including ECOWLD (OP; TP: RM0.83) and IOIPG (OP; TP: RM1.60) will benefit from the additional stamp duty exemption as they all have products priced between RM500k to RM1m.

Source: Kenanga Research - 8 Oct 2022