Advertisements
Skip to content

REHDA Penang has reduced property prices by 6-10 percent. Hooray!

Posted in Property Penang

Sales and Service Tax (SST) has started. There has been a few car models including BMW which has announced lower prices with the SST compared to previously. The good news are now extended to the property market. According to an article in NST,  Finance Minister Lim Guan Eng has praised the Real Estate and Housing Developers Association (REHDA) of Penang because it has reduced the prices of houses in the between 6 and 10 percent. This is in line with the government’s initiative to provide SST exemption for the construction sector, as announced previously. He said all housing developers nationwide should follow the example set by Penang REHDA and adopt the same measure. If they do this, it will enable more people to buy their own homes. He said, “This is a positive step by REHDA in the state. We hope that they can advise other members nationwide to follow in their footsteps.”

He added, “Penang REHDA has also shown that they are a socially responsible corporation as they have not taken advantage of the tax relief, and instead channeled it back to the people.” According to Penang REHDA chairman Datuk Toh Chin Leong, the prices of homes in Penang costing RM300,000 and above would be reduced by 10 per cent.For properties costing below RM300,000 the reduction will be six percent. This applies to both the existing and new projects. He said that this reduction was possible because housing developers are now able absorb the cost as they have been exempted from the SST. This, he said, was previously taxable under the previous Goods and Services Tax (GST). He added, “We also welcome the implementation of the SST because under the GST, developers had to shoulder additional costs, some of which were transferred to the consumer. But through the SST, several components of the tax related to construction have been exempted, thus enabling us to reduce the price of houses.”

Reduction in property prices is always a good news to Malaysians who has yet to buy a property. The question is always, will these first-timers be persuaded enough to buy a property? Frankly, 6-10 percent is a good reduction and I do not think SST is the only reason. The current soft market must have also provided a push as well. It’s also extremely important to objectively decide because a good property will still be a good property even if it’s priced at 10 percent higher. The wrong property, even if it’s priced between 6-10 percent lower is still a bad property yeah. Perhaps we will start to see advertisements from developers about this change? Put their current price, draw an X and put the new price instead? I guess if they are not doing this, it’s not going to be convincing enough that they have actually reduced their property prices with this SST’s implementation versus the GST earlier. Happy Penangites…

written on 11 Sept 2018

Next suggested article:   Penang LRT not the best choice

Advertisements

5 Comments

  1. Paige Peyton
    Paige Peyton

    This is definitely a good news to all Malaysians who want to buy their own properties. Since it can be done in your country, I’m hoping that the rest of the world would be able to do the same.

    September 12, 2018
    |Reply
    • kopiandproperty.com
      kopiandproperty.com

      I wish so too Paige.

      September 12, 2018
      |Reply
  2. Darrell Nathan
    Darrell Nathan

    Will the developer reduce the total price of the property or just give a discount? Because nowadays most developer are already giving more than 5% discount on. Lets wait for more updates

    September 12, 2018
    |Reply
    • kopiandproperty.com
      kopiandproperty.com

      Very interesting question Darrell. I think the buyers would have to look at the price and compare it with their previous one to know for sure.

      September 12, 2018
      |Reply

Leave a Reply

This site uses Akismet to reduce spam. Learn how your comment data is processed.

%d bloggers like this: