Property prices, always a popular topic. Are there savings from the Sales and Service Tax (SST) which will be passed on to buyers of properties? At least future buyers of new properties for which the developer will start to enjoy the waiver by the Finance Ministry? After speaking to many property related people, I think the answer is a definite yes. As for the % that will be reduced, it differs tremendously. Some tells me that the the % is actually not significant so buyers may not actually feel it. Some say that the rebates being offered today is already higher than the SST waiver because of the market situation of today; uncertainty for the property market. Earlier article here.
Now we have a formal reply published in an Article in Edgeprop.my here. The Real Estate and Housing Developers’ Association Malaysia (Rehda) President Datuk Ir Soam Heng Choon says it expects some savings in development cost following the government’s move to exempt basic construction materials and construction services from the Sales and Services Tax (SST) in the effort to reduce house prices. As for the actual percentage, he said, “We are expecting between 2.5% to 5.0% savings depending on the type of development, but this will be applicable to new projects only as prices for those projects during the Goods and Services Tax (GST) era would have been agreed upon by the contractor and are in various stages of completion.” Beyond just the SST he also mentioned that there are also other discounts and rebates that most developers are currently offering. Thus house buyers could look forward to at least 5 percent lower prices depending on the location and type of product. Here’s that article for reference again.
Courtesy reminder. Property buyers may want to take a slightly more positive mindset in getting that home that meets all our expectations because the developers are currently more negative in their actions; rebates and discounts. We should also bear in mind that this percentage of savings, however low or high does not compensate for buying the wrong property yeah. For example, we hate a certain area but we still buy because of high discounts offered or that our friend happened to be buying. There has been a never-ending of these cases. For now though, happy enjoying all the extra perks and benefits as well as the many events organised by developers.
written on 30 Oct 2018
Next suggested article: Sky rocketing prices cause people to rent, oh dear