KUALA LUMPUR: Local property developers expressed their commitment in offering lower house prices in response to the government’s call to pass the savings from Sales and Services Tax (SST) exemption to consumers, with some going as high as 10 per cent discount.
This does not only include new property launches but also overhang units, although the enforcement of SST exemption only came last month, the property developers said.
Mah Sing Group Bhd chief executive officer Datuk Ho Hon Sang said the company will reduce home prices after taking into account of the SST exemption.
“We understand Finance Minister Lim Guan Eng’s intention is to help the home buyers especially the first time buyers and younger generations to own their first home.
“We will abide by Real Estate and Housing Developers Association (Rehda)’s advice and the savings attributed to the change of Goods and Service Tax (GST) to SST will be passed on to the purchasers,” he told NSTP.
Lim last week said the government will withdraw SST exemption on local property developers if prices are not reduced.
Another prioperty player, Alzac group companies, will also reduce the house prices including overhang units as demand seems slowing down.
Chief executive officer Datuk Mak Foo Wei said the company will reduce house prices not only because of SST exemption but also we need to adjust the prices lower to meet the market demand which has been slowing down due to slower economic growth.
"Therefore, we urged the government to come up with more pro-growth policies to expand the economy. With the economy expanding, people will benefit from higher income," he said when contacted by NSTP.
Rehda president Datuk Soam Heng Choon earlier said the association is currently undertaking a study on the amount of savings property developers will get from the government's new policies.
"The amount of savings will then be passed on to consumers. We expect to present in a month time before the Budget 2019 announcement," he said.
Rehda Penang hoped to bring down the overall housing prices in the state by 10 per cent for those costing above RM300,000 and six per cent for affordable housing.
Chairman Datuk Toh Chin Leong said the association here would advise its members to lower the prices.
Ehsan Plant & Property Sdn Bhd said it will conduct a preliminary study before it can decide on the amount of discount that can be passed on to consumers.
Chief executive officer Datuk Abdul Hamid PV Abdu said this is because the SST exemption is not exhaustive and only given to some building materials whereas other construction materials are still taxable.
"Building materials such as tiles and doors are still subject to SST of 10 per cent.
"Therefore, we need to make a calculation first and it is still too early to announce how much of a reduction can be made,” he said.