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Anxious property owners in a hurry to sell due to RPGT, say agents

PETALING JAYA: Just days after the announcement of the imposition of the 5% real property gains tax (RPGT) from January 2010, the phones of real estate agents have been ringing non-stop with calls from homeowners who want to put up their properties for sale. 

See Kok Loong, director of Metro Homes Sdn Bhd, said some owners, who were not in a hurry to sell before are now aggressively trying to sell their property while the number of new listings have spiked over the past few days.

On the other hand, investors are also reconsidering their decisions to buy. Jeffrey Tai, a 36-year-old senior executive, told theedgeproperty.com that he pulled out from signing a sale and purchase agreement for a property in Ampang scheduled on Oct 29, following the announcement concerning the RPGT.

“I was planning to flip the property next year, but with this 5% tax (RPGT), I need to reconsider and analyse the deal. That 5% is not a small amount. Furthermore, bank loan interest rates might go up next year,” he said.

According to Metro Homes’ See, owners are now adjusting their selling prices because of the 5% RPGT. Some may reduce and some may increase the price. Nevertheless, he believes this is a good time to buy a property especially for owner-occupiers and deals should be concluded as soon as possible before Jan 1.

Vincent Ng, chief executive of Kim Realty, said some buyers may be motivated to buy over concerns that some sellers may factor in the 5% into the selling price next year.

“The RPGT shocked the industry. It is hard to predict how it will impact property prices. Some investors may not sell but focus on renting out the property or those who prefer to sell may increase the selling price if they fail to sell their property within these two months. Within these two months, however, there may be some urgent sales where prices may be lower than previous asking prices,” he added.
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