PROPERTY experts expect the market to decelerate between four and six months after the Goods and Services Tax (GST) is implemented in the country, but expect it to stage a rebound later.
Property wealth adviser Milan Doshi said the spike in property sales could be seen in the
months leading up to April 1 next year to compensate for the pre-GST market downturn.
“If property owners wish to sell their properties, it is wise to do so before the commencement of GST because it would take time for the market to absorb the initial impact of GST,” he said.
However, Doshi added that
the property market will rebound because supply and demand play a bigger role where properties are concerned.
“More important now is how the government tackles the compliance costs incurred by the GST implementation,” he said at the Property Investment Summit & Expo (PRISM) 2014, here, yesterday.
Dr Dolf de Roos, the author of “Real Estate Riches” and “52 Homes in 52 Weeks”, said while property prices are expected to go up following the implementation of GST, it is a non-issue as the effect is actually minimal.
“The GST is a consumption tax. The good news is those who consume a lot pay proportionately more and there is an element of fairness there.
“When the government drops the income taxation rates, it would be compensated anyway. We will have to pay more in the form of GST but we will have our net incomes to pay for it.
“The market will keep on going despite the new tax while some developers may even choose to absorb the tax to compete with other developers,” said de Roos.