Property developers are supportive of the government’s effort to correct the highly speculated property market in the country but hope that it would be done in a moderate manner.
This follows the government’s proposal to revise upwards the real property gains tax (RPGT), which is expected to be announced in the upcoming Budget 2014.
Andaman Property Management Sdn Bhd managing director Datuk Seri Vincent Tiew said drastic changes in the RPGT and polices may hurt property developers, buyers and investors.
Hence, he said any changes in the property-related polices must be made clear and delivered promptly so as to ensure property developers and other stakeholders are ready to adapt with the changes.
"I personally foresee a stern budget. Any policies should be made known clearly and implemented quickly," Tiew said.
Speaking at the PropertyGuru Developers' Forum on the pre-budget session here yesterday, Tiew said the cooling measures imposed by the government had created quite an impact on the property market.
Also present were PropertyGuru Malaysia country manager Gerard Kho, Austin Heights managing director Datuk Steve Chong, Malaysian Property Incorporated general manager Veena Loh and Binastra Group general manager for property development Steven ooi Hock Ang.
For Kho, he hopes that Budget 2014 will include specific policies to encourage growth in the key economic centres of Klang Valley, Johor Baru, Penang as well as Sabah and Sarawak.
"Another important area is further incentives to assist new purchasers. It could be stamp duty exemptions or 'bonus' incentives for first time buyers, even financing schemes that encourage financial prudence among buyers to be financially prudent could be helpful," he said.
He also suggested for tax exemptions on rental income for the first three years to promote buyers to keep the properties longer.
Meanwhile, Chong said the government is proposing higher RGPT as it wants 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.
The forum, organised by leading online property portal, PropertyGuru.com.my aims to allow property developers to air their views for further consideration by the government and to continue providing timely and relevant information to empower people in making better informed property investment decisions.
Among the key issues highlighted were directly related to the property sector such as the introduction of higher RPGT, affordable housing and rising property prices, as well as economic and national concerns such as goods & services tax, rising construction costs, the national debt, crime prevention and others.