Property Hunter Magazine September Issue 2014 | Page 112

52  53 |

Contributor

/// Banking and Investment News

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BANKING &
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INVESTMENT

Homing in on the Real House Price
Tax consultants are already holding
interviews and talks on the effects of
the GST on the economy. Although
the residential segment of the
property market is GST-exempt,
there are concerns about its impact.
Association of Valuers, Property
Managers, Estate Agents and
Property Consultants in the Private
Sector president Siders Sittampalam
advises caution.
Net and gross price

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

This is an informal poll with property
professionals, potential house buyers
and a lender on the various issues in
the property market today, including
the BLR increase and lending based
on gross/net selling prices and the
effects on mortgage payments.

GST May Hit Home Sales
our development plans to cater to
current market demand and trends,”
he said in an interview.
On an overall basis, Izzaddin said the
company expected a slight decline
in margins with rising cost pressures
but there would be a transitional
period as the markets would focus
more on costs and margins.
He said UEM Sunrise, in anticipation
of the coming GST, has made
provisions to prepare for the impact
as it believed that its financial impact
would be reflected in the company’s
future financial results.

Property developer, UEM Sunrise
Berhad, expects demand for homes
to taper off after the implementation
of the goods and services tax (GST)
on April 1 next year, especially in the
second quarter.
Executive director Datuk Izzaddin
Idris said this was based on trends in

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countries that have implemented
GST as there was a pullback in
demand within the quarter of
implementation.
“We believe that in this challenging
market environment, we are
prepared to hold back launches if
necessary. We are revisiting some of

Izzaddin said as residential
properties were exempted from GST,
the increase in input tax cannot be
claimed by property developers or
passed on to the home buyers for
residential projects already launched
and sold.
He said most contractors or
suppliers tendering for projects had
already factored in potential cost
increases pursuant to GST.

Izzaddin said it would pay to price
new launches competitively and to
offer the “right” products especially
in a slower m \