Malaysian developers share concerns for Budget 2014

Malaysian developers share concerns for Budget 2014

With the upcoming Budget 2014 expected to introduce stricter policies for the property sector, several property developers convened together at the first ever PropertyGuru Developers' Forum to share their views on the situation. Organised and moderated by Asia's leading online property portal, PropertyGuru.com.my, the closed door forum was held at Eastin Hotel, Petaling Jaya on 12 September. Malaysia Property Incorporated (MPI), along with prominent developers such as Austin Heights, Andaman and Binastra participated the event.

During the forum, Andaman Property Management Sdn Bhd Managing Director, Datuk Seri Vincent Tew revealed that he expects the upcoming budget to include drastic changes in the real property gains tax (RPGT).

“From the property developers' point of view and as an avid investor, obviously I would like the RPGT. Whether the current RPGT schemes are effective or not, I would say the holiday perks should expire this year...I would think that basically this year, it has to be tougher, the percentage should be higher. I feel that the market has to correct itself and there must be a balance there,” he said.

Austin Heights Managing Director Datuk Steve Chong noted that the government intends to raise RPGT in order to curb speculations in the industry.

“The government is concerned about whether the low- and middle-income group have enough houses for them to buy or the speculation has pushed up house prices to become too expensive,” he explained.

Meanwhile, Gerard Kho, Country Manager of PropertyGuru Malaysia hoped that Budget 2014 will include policies that will encourage growth in the key centres of Johor Bahru, the Klang Valley, Penang and East Malaysia.

“Another important area is further incentives to assist new purchasers. It could be stamp duty exemptions or “bonus” incentives for first time buyers, even financing schemes that encourage financial prudence among buyers to be financially prudent could be helpful. Another idea is tax exemptions on rental income for the first three years to promote buyers to keep the properties longer,” he added.

 
 
Farah Wahida, Editor of PropertyGuru