CAP backs vacancy tax to tackle property speculation in Malaysia
CAP president Mohideen Abdul Kader stated that such a measure is crucial to reducing property speculation and making housing more affordable for Malaysians.
'A vacancy tax typically applies to properties that remain vacant—unsold or unrented—for more than six months in a year.
'In countries such as Canada and Australia, particularly in cities like Melbourne, this tax is set at between one and three per cent of the property or land value,' he said.
Mohideen explained that the tax aims to discourage speculative investments, especially in the medium-cost housing segment, where rising prices in the subsale market have made homeownership unattainable for middle-income earners.
He highlighted that many urban properties remain empty while thousands struggle to find affordable homes.
'A vacancy tax would act as a strong disincentive to leave properties idle and would encourage owners to either rent out or sell them, returning more units to the active housing market,' he added.
CAP also urged the government to reassess the Real Property Gains Tax and stamp duty, proposing higher rates for short-term property sales and additional home purchases.
Mohideen called for tighter restrictions on foreign buyers and stricter housing loan policies for individuals owning multiple properties, including lower loan-to-value ratios to deter speculative borrowing.
'Unless the government introduces comprehensive policy reforms, Malaysia's housing sector will continue to favour investors at the expense of ordinary citizens.
It is the government's duty to uphold the principle that housing is a fundamental right, not a speculative commodity,' he stressed. - Bernama
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