Guan Eng: 10% discount for newly launched houses possible

KUALA LUMPUR (Oct 30): Following the exemption of the Sales and Services Tax (SST) on construction materials, new home buyers may be able to look forward to discounts between five to 10 per cent on house prices in the coming months.

The Malay Mail reports that Finance Minister Lim Guan Eng said the discounts would apply to newly launch housing units only, not including low cost housing projects which as they are under the price controlled category. 

“As for existing units that have already been built, you will have to wait until this Friday for the Budget announcement,” he was quoted as saying.

“To me I would wish for a 10 per cent discount and so we will give Rehda time to work towards achieving that goal,” he said.

When talking about developers who would not lower their prices, the Finance Minister said that the SST would be reimposed by the government.

“We want to see a reduction for new homes that are yet to be built or else we will bring back the six per cent of SST,” he said.

The daily reports that he said the government wants to see house price reduction, instead of additional perks by developers, such as freebies and rebates.

The daily cites a statement issued by Rehda yesterday, where Rehda president Datuk Soam Heng Choon encouraged developers to lower their prices, subject to location and type of projects.