Property Hunter Magazine Issue 63- February 2015 | Page 65
SOARING AND
TUMBLING
AFTER GST LIKE AUSTRALIA?
NOT LIKELY
P
roperty transactions soaring since 2009
– 2011. Property transactions started
tumbling in 2012 and continued in 2013
and should still continue in 2014. What
about the effect of GST? Would everyone
be rushing to buy 1-2 quarters before
GST and push up the prices further and 1-2 quarters
after GST, the prices come tumbling down, like what
happened in Australia many years ago? CEO-Agency
of property consultancy PPC International Sdn Bhd
Siva Shanker says that buyers would be snapping
up properties one or two quarters before GST but
property prices would then find a level and stay there.
It is unlikely to follow the example of Australia.
Always invest with the big picture in mind. GST is a
new form of tax replacing the current one that we
have. Do not buy with GST in your mind as the main
factor affecting it. This is just like when someone
tells you that Stock ABC is going up because so and
so is buying into the company. Yes, you may earn
big money but it may also mean that you lose big.
Fundamentally, why did you buy in the first place.
For retirement? Then, there should not be a change
just because of GST. For your children? Then, starting
earlier is definitely better than later because no one
actually knows the best time to buy.
Happy ‘GST’ thinking
if you still think GST
is the main reason
for buying or not
buying.
He further said that his personal views are that 2013
and 2014 are slowdown years. 2015 is when the
footing is found and recovery would start from 2016
onwards. CH Williams, Talhar & Wong managing
director Foo Gee Jen says that he expects an 8-10%
jump in price after GST and for landed property at an
even stronger 10-15%. He said, he does not see an
oversupply in landed but for condo, especially SOHO
and SOVO he sees an oversupply already building up.
In my personal view, I think many of us including
myself know very little about GST. It is after all the
first time in our history that GST will be implemented.
Thus, when we hear people saying GST will push
prices up, some would immediately make a decision
to buy. Haha. Then, when someone says that GST
induced price up is temporary, some may think it’s
best to invest in something else first and wait till the
situation becomes clear. How long should we wait for
the situation to become clear?
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