Property prices in Malaysia continue to pose challenges for many prospective buyers. With limited land available in city centers, land prices remain high, forcing developers to charge a premium for properties within a 5-10 km radius of urban hubs.

Given the significant costs involved in purchasing a home, many Malaysians, particularly younger generations, have hesitated to pursue property ownership due to the long-term financial commitments it entails.

While housing affordability has long been a challenge, several homeownership schemes are now available to make purchasing a first home more attainable. Among these, the reintroduced Home Ownership Campaign (HOC) 2020 stands out, offering exemptions designed to lower the entry costs of homeownership. This scheme benefits not only first-time buyers but also those looking to upgrade or purchase a second or third property.

Skyline view of new residential property developments in Malaysia

What Is HOC 2020?

The Home Ownership Campaign (HOC) was reintroduced by the Malaysian government as part of the Short-Term Economic Recovery Plan (Penjana) to address the property glut and reduce the surplus of unsold residential units. Running from June 1, 2020, to May 31, 2021, the campaign offers stamp duty exemptions for properties priced between RM 300,001 and RM 2.5 million.

This initiative applies to properties purchased from developers registered with the Real Estate and Housing Developers’ Association (REHDA) Properties for sale in Malaysia, Sabah Housing and Real Estate Developers Association (SHAREDA), and the Sarawak Housing and Real Estate Developers’ Association (SHEDA). Many participating developers also offer additional exemptions on legal and other associated fees to further support the campaign and encourage sales.

Key Benefits of HOC 2020

The HOC 2020 campaign offers several notable advantages for buyers:

  • Partial stamp duty exemption on the instrument of transfer and loan agreement
  • Full stamp duty exemption for buyers who signed and stamped their Sale and Purchase Agreement (SPA) between June 1, 2020, and May 31, 2021
  • A minimum 10% discount on the purchase price, provided by participating developers
  • The removal of the 70% margin of financing cap previously applied to a buyer’s third property

As a result, eligible buyers may be able to secure up to 90% loan financing, even on a third property purchase, subject to the respective bank’s risk assessment.

Who Is Eligible?

The HOC 2020 campaign is open to all Malaysian citizens, who may participate as either the sole purchaser or a co-purchaser of residential property.

Buyer signing a sale and purchase agreement for a property purchase

Is Now the Right Time to Buy?

For those who have been searching for a property over the past few years, this campaign presents a timely opportunity. With stamp duty and SPA exemptions in place, buyers stand to save a significant portion of their overall costs, particularly on legal fees. Affordability is no longer the barrier it once was, at least for the duration of this campaign. The remaining decision now rests with buyers, who weigh factors such as location, property type, and budget to determine which property best suits their needs.

Ready to take advantage of HOC 2020 before it ends?

Explore verified listings and connect with trusted agents on Ziba Property to find a home that qualifies for stamp duty exemptions and developer discounts. Start your property search today.

FAQs

What is the Home Ownership Campaign (HOC) 2020?

HOC 2020 is a Malaysian government initiative under the Penjana economic recovery plan that offers stamp duty exemptions and other incentives to encourage property purchases and reduce the surplus of unsold residential units.

When does the HOC 2020 campaign run, and which properties qualify?

The campaign runs from June 1, 2020, to May 31, 2021, and applies to properties priced between RM 300,001 and RM 2.5 million, purchased from developers registered with REHDA, SHAREDA, or SHEDA.

What savings can buyers expect under HOC 2020?

Buyers can benefit from partial or full stamp duty exemptions on the instrument of transfer and loan agreement, a minimum 10% discount from participating developers, and the removal of the 70% financing margin cap on third properties.

Who is eligible to participate in HOC 2020?

The campaign is open to all Malaysian citizens who can purchase property either as sole buyers or as co-purchasers.

Can I use HOC 2020 to buy a second or third property?

Yes. HOC 2020 removes the 70% financing margin cap that previously applied to third properties, potentially allowing up to 90% loan financing, subject to the bank’s risk assessment.

Muhammad Amir – Real Estate Writer at Ziba Property

About the Author

Muhammad Amir is a real estate writer at Ziba Property, covering property markets across Asia and the Middle East. He helps buyers understand government incentives, financing options, and market trends like the Home Ownership Campaign, making the path to property ownership clearer and more accessible.