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Property developers Eye Goodies in 2018 Budget

Oct 23, 2017

Property developers are banking on the government to introduce initiatives to spur the housing market under the 2018 Budget, to be unveiled this Friday.

They say building materials should not be taxed, especially for affordable housing projects, or homes that are RM500,000 or under.

Dato’ Ong Theng Soon of Klang Valley property developer, Binastra Land, says the GST rate should be reduced by 1 to 2 percent.

“Depending on the type of property, building materials like bricks, cement and roofing materials can account for around 50% or more of the cost of construction.

Alternatively the government can consider charging developers only for homes above the RM500,000 mark.”

He adds, the government should provide tax exemptions for machinery used in the industrialised building system, or IBS.

Simply put, IBS sees components of a home constructed off-site, before being assembled at the actual building site, thus speeding up construction time and cutting costs.

From the purchasers’ point of view, Dato’ Ong reckons first-time home owners and those hoping to buy affordable homes, should be targeted under the 2018 Budget.

He suggests a further relaxation of stamp duties.

Also, while he lauds policies that curb excessive speculation, he feels bank lending guidelines should be relaxed to encourage genuine buyers.

He’s also hoping that the 2018 Budget will reverse a decision, to increase the stamp duty for properties worth more than RM1 million from 3 to 4 percent, starting January 1stnext year.

Dato’ Ong argues, the market is not ready for it, and the move could indirectly lead to an increase in prices of homes.