The Penang branch of the Malaysian Institute of Estate Agents (MIEA) has called on the government to extend the stamp duty exemption offered under its Home Ownership Campaign (HOC) to cover the secondary market.

“We hope the same incentive, stamp duty exemption, be extended to the secondary market which are existing properties being sold by owners instead of by developers,” said MIEA Penang chairman Christina Choong

This comes as some first-time buyers prefer to purchase a property from the secondary market due to its immediate availability and location.

However, the exemption only covers properties costing below RM300,000 within the secondary market.

As such, buyers “will have to fork out a higher deposit amount so we hope that there are incentives to help the secondary market too”, said Choong.

She noted that it is difficult to determine the number of secondary units that were left unsold in the market, reported Malay Mail.

“According to data from the Valuation and Property Services Department, there are about 3,000 overhang units priced above RM400,000 in the secondary market in Penang,” she said.

With this, Choong also urged the state to extend the approval fee exemption to foreign property buyers in the secondary market.

State exco Jagdeep Singh Deo, who is also housing development committee chairman, promised to bring up MIEA’s request for extension of the approval fee exemption to the secondary market.

In a bid to spur the property market, Penang offered a three percent exemption in approval fee to foreign property buyers in the state.

While the exemption was offered until June only, it was extended until the end of the year and applied to the primary market only.