Thursday, 12 September 2013 17:36
KUALA LUMPUR – Budget 2014 is expected to have stricter policies for the property sector to curb speculations in the industry and help low-and medium-income earners to own affordable houses, says a real estate developer.
Andaman Property Management Sdn Bhd Managing Director Datuk Seri Vincent Tew expects drastic changes in the real property gains tax (RPGT) to be announced in the budget.
“I personally foresee a stern budget. Any policies should be made known clearly and implemented quickly.
“Once the Budget announcements are made, the policies must be made clear and delivered promptly and not wait for six months. A speedier explanation of the new pronouncements will make it easier for property developers to draw up their plans,” he told the PropertyGuru Developers’ Forum on the pre-budget session.
Prime Minister Datuk Seri Najib Tun Razak, who is also the Finance Minister, will table the keenly-awaited budget in Parliament on Oct 25.
The closed door forum saw the participation of Malaysian Property Incorporated, Andaman Properties, Binastra Group and Austin Heights Sdn Bhd.
“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,” Tew said.
Meanwhile, Austin Heights Managing Director Datuk Steve Chong said the government planned to increase the RGPT as it wanted to curb speculation to rein in the property bubble.
“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 said.
PropertyGuru Malaysia Country Manager Gerard Kho hoped Budget 2014 would also include specific policies to encourage growth in the key economic centres in the Klang Valley, Johor Baharu, Penang and Sabah and Sarawak.
“Another important area is to have further incentives to assist new purchasers. It could be stamp duty exemptions or “bonus” incentives for first time buyers,” he said.
Kho added another incentive that would be helpful was financial scheme to encourage financial prudence among buyers and tax exemption on rental income for the first three years to promote buyers to keep properties longer.
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