By Sharen Kaur
Published in NST on October 22, 2013
DEVELOPERS believe curbing speculative buying in the property market should be approached with care instead of introducing policies that will affect foreign buying.
IJM Land Bhd chief executive officer and managing director Datuk Soam Heng Choon said foreign buyers are still an important component of the housing market, as they serve as purchasers of high-end properties.
"We still need foreign buyers to buy high-end properties priced RM1 million and above.
"We also need foreigners employed in sectors such as oil and gas to support the rental market for high-end properties.
"The government must not forget that Malaysia Property Inc was set up to promote Malaysian properties overseas and get foreign buyers here.
"Flip-flop policies will serve only to drive away interested foreign investors."
Analysts have predicted another round of policy-tightening, including increasing the real property gains tax (RPGT) and stamp duty in the 2014 Budget to rein in household debt.
Last month, Urban Wellbeing, Housing and Local Government Minister Datuk Abdul Rahman Dahlan said the government would not hesitate to further tighten fiscal policies to curb property speculation and ensure reasonable and affordable property prices.
Rahman had said that his ministry was studying the possibility of increasing the RPGT as the rate had not been effective in curbing speculative buying.
The rate currently stands at 15 per cent for properties sold within two years, 10 per cent for properties sold in the third to fifth year, and no tax for properties sold after five years.
Real Estate and Housing Developers' Association Malaysia (Rehda) president Datuk Seri Michael Yam said a hike in RPGT and stamp duty on the transactions of properties would cause uncertainty among foreign investors because of the swing in government policies.
Yam said this would have a bearing on property-buying decisions, leading to a possible wait-and-see attitude among foreign investors.
"There are better mechanisms to curb speculation than just increasing the RPGT."
Published in NST on October 22, 2013
DEVELOPERS believe curbing speculative buying in the property market should be approached with care instead of introducing policies that will affect foreign buying.
IJM Land Bhd chief executive officer and managing director Datuk Soam Heng Choon said foreign buyers are still an important component of the housing market, as they serve as purchasers of high-end properties.
"We still need foreign buyers to buy high-end properties priced RM1 million and above.
"We also need foreigners employed in sectors such as oil and gas to support the rental market for high-end properties.
"The government must not forget that Malaysia Property Inc was set up to promote Malaysian properties overseas and get foreign buyers here.
"Flip-flop policies will serve only to drive away interested foreign investors."
Analysts have predicted another round of policy-tightening, including increasing the real property gains tax (RPGT) and stamp duty in the 2014 Budget to rein in household debt.
Last month, Urban Wellbeing, Housing and Local Government Minister Datuk Abdul Rahman Dahlan said the government would not hesitate to further tighten fiscal policies to curb property speculation and ensure reasonable and affordable property prices.
Rahman had said that his ministry was studying the possibility of increasing the RPGT as the rate had not been effective in curbing speculative buying.
The rate currently stands at 15 per cent for properties sold within two years, 10 per cent for properties sold in the third to fifth year, and no tax for properties sold after five years.
Real Estate and Housing Developers' Association Malaysia (Rehda) president Datuk Seri Michael Yam said a hike in RPGT and stamp duty on the transactions of properties would cause uncertainty among foreign investors because of the swing in government policies.
Yam said this would have a bearing on property-buying decisions, leading to a possible wait-and-see attitude among foreign investors.
"There are better mechanisms to curb speculation than just increasing the RPGT."
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