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RPGT expected to dampen market

PETALING JAYA: Activities in the real estate sector will most likely be slow early next year with the imposition of a 5% real property gains tax (RPGT) from January 2010.

“It would likely dampen the market for a while as people would hold back on acquisition transactions,” said PricewaterhouseCoopers Taxation Services Sdn Bhd’s executive director, Ng Say Guat in an email to theedgeproperty.com

She added that foreign investors would also react similarly in evaluating their choice of real property investment locations. Transactions may drop in 2010, as Malaysia will seem less attractive than before.

She said there are still concerns over the global economic crisis.

“Property players also might hold back their properties due to the uncertain global economy and wait for the crisis to seep through,” she said.

The government had suspended the RPGT on April 1, 2007 to boost the property sector enabling investors to upgrade.

Meanwhile, Ng said consumers should not panic or over react if transactions failed to start and complete by end of the year.

“They should instead weigh the tax cost of 5% compared with a potential compromise in the true value of their money,” she said.

Sales however may rise towards the end of the year as“sales could be expedited and this may give purchasers more bargaining power,” she said.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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