'Policies to cool property sector will affect secondary market'
KUALA LUMPUR: Property experts say any new policies introduced by the government in the 2014 Budget to cool the real estate sector will affect the secondary market.
Adzman Shah Mohd Ariffin, chairman of the Property Management, Valuation and Estate Agency division of the Royal Institution of Surveyors Malaysia, said those policies, including raising the real property gains tax (RPGT), will affect people who are upgrading or buying for their own stay.
"If the RPGT is raised, the seller won't make enough money to upgrade. Those buying in the secondary market may likely be paying more for their property as the seller marks up the price," he said after a briefing on the 23rd National Real Estate Convention 2013 recently.
Malaysian Institute of Estate Agents president Siva Shanker said speculation is now in the primary market, a segment that makes up about 15 per cent of total property transactions per annum.
"The RPGT jump in the first two years is not going to have any effect on the sellers as they are most likely to sell their properties in the third or fourth year after buying it.
The Association of Valuers, Property Managers, Estate Agents and Property Consultants in the Private Sector, meanwhile, proposed a slight rise in the RPGT to 20 per cent for disposals within two years, 15 per cent for disposals in the third year, 10 per cent in the fourth year and five per cent in the fifth year.
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