Property Hunter Magazine Issue 63- February 2015 | Page 60

BANKING AND INVESTMENT NEWS

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BANKING &
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INVESTMENT

NEWS

The banking and investment industry has a crucial role
to play when it comes to property. Read about the most
recent news and trends in this trade

Surge Forecasted Post-GST
“The GST applies equally
on both newly completed
and second-hand older
properties so buyers who
are able to will be in a
rush to buy properties to
avoid paying the extra
six per cent,” he said in a
press conference.

W

ith only three months
remaining before GST
is implemented, there’s
a forecasted rush for people to
acquire property and to avoid
paying the additional 6% tax. If
that happens, will the Malaysian
property market become mobilised?

60

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Michael Geh
Property market transactions may
surge in the run up to the start of
Goods and Services Tax on April 1, a
real estate agent Michael Geh said.
The FIABCI Malaysia vice-president
said those who can afford it will be
rushing to buy homes in the three
months before GST.

Last year, the National Property
Information Centre (NAPIC)
revealed that overall residential
property market transactions in
the country dropped from 272,669
transactions in 2012 to 246,225
transactions in 2013.

Geh said after the GST, some buyers
may wait to gauge the situation
before making a commitment.

The primary property market refers
to newly built units direct from
developers.

“There will still be transactions
after April as people still need to
buy their first homes, to upgrade
or to downgrade from their
current homes, but it will be slower
compared to the first three months
of this year,” he said.

However, the secondary property
market — for second hand or
older houses — transactions only
dipped slightly. It recorded 212,428
transactions in 2012 and dropping
to 205,035 transactions in 2013.

The primary property market was
affected the most, dropping from
60,241 transactions to 41,190.