PETALING JAYA: As basic building materials such as bricks, cement and sand will not be charged under the Sales and Service Tax (SST), Malaysians can expect house prices to be slightly lower.
Deputy Housing and Local Government Minister Senator Datuk Raja Kamarul Bahrin Shah Raja Ahmad said house prices were expected to be between five and 10 per cent lower as the materials were previously subjected to six per cent tax under the Good and Services Tax (GST).
“Therefore, as the materials will be exempted under SST, house prices may drop roughly between five and 10 per cent, as there are many categories of houses,” he told reporters after opening the Wan Kien Complex here.
Raja Kamarul, however, said one of several other factors that control house prices was the price of land.
“As land falls under the respective state governments, we cannot make a decision on that. Therefore, we are hoping that state governments will give their cooperation, in order to lower house prices, by lowering land premium charges.”
Raja Kamarul said development charges imposed by local councils also must be reviewed.
Present tonight was City Motors Group of Companies executive chairman and founder Datuk Foo Wan Kien.
Meanwhile, the Wan Kien Complex, named after Foo marks a new chapter in City Motors Group’s business achievements in the automobile and property development sectors.
Formerly known as Penchala Complex, it was bought over and refurbished by City Motors this year at a cost of RM2 million.
Foo, in his speech, said the company was currently developing two multi-million ringgit tower projects in Bangsar and Bukit Bintang.
“These ground-breaking new developments are something property buyers and investors can expect from City Motors Group, which promises to be the epitome of upscale and contemporary living,” he said.