PUTRAJAYA: The price of residential properties is expected to increase between one and two per cent come April 1.
Deputy Finance Minister Datuk Chua Tee Yong said public can expect to see an increase in residential property price despite it being tax-exempt due to spillover effect of the Goods and Services Tax (GST).
However, he said GST is only one of the influencing factors.
"Prices of residential properties have been on the rise over the years. In fact, there has been more than six per cent increase in price every year.
"In some areas in the country, prices of residential properties have increased between 10 and 12 per cent.
"GST is only one part of the cost. There are other factors such as due to supply and demand, property location, land, and building material," he said at a media briefing on GST and property here today.
Customs Department GST division senior assistant director Raizam Mustapha said a hike by 2.05 per cent can be expected post-GST.