Unsold properties are slowing down the market recovery. In fact it gives a negative perception that there’s oversupply which is not true. There are still by far more Malaysians without a home needing a home. Just that they could not find one which suits their preference and financial capability. Unsold properties also meant that some developers may face financial difficulties too; cashflow issue.
So, the Ministry of Housing and Local Government (KPKT) said that it was seriously considering vacancy tax and that as soon as the cabinet approves it, they will implement this as early as 2021. Earlier article here: Vacancy tax coming in 2021. Well, there has been many feedbacks from the industry and today, a new decision has been announced by KPKT Minister Zuraida Kamaruddin.
Article in edgeprop.my The Ministry of Housing and Local Government (KPKT) says it will find alternative ways to overcome the property overhang situation other than imposing a vacancy tax for developers who fail to sell their properties. Minister Zuraida Kamaruddin said, “KPKT takes the stand that we will find other methods to prevent developers from building houses that do not meet the people’s needs.”
“Before developers begin their construction, KPKT will look at whether there are projects proposed by them that are viable and meet the needs of the people.” She also mentioned about a data system saying, “When we have developed a data system, we should be able to get the right projection because then they (developers) would be able to assess by using statistical information to help them plan their construction in future.” Article in edgeprop.my
Well, it’s back to the thinking block since there were no mention of any potential solutions currently. As for the developers, I think they could heave a sigh of relief but the truth is, their planning for future developments would now have to be much more thorough because this option of vacancy tax remains one highly potential one even after the unsold property issue is solved in the future.
By the way, the owners must also do their homework properly as well because as the name implies, vacancy tax is for any property left vacant and it can even be for home owners yeah. Waiting for the next proposed solution(s).
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