“The move could possibly bring an upward revision of market prices for those condominiums and apartments that are currently fetching between RM500,000 to RM600,000 in some places in Penang,” said Henry Butcher Malaysia (Penang) Asset Valuation executive vice-president for asset valuation Shawn Ong.
“The revision will allow sellers to pay lower RPGT. However, we hope continuous improvements to the RPGT policy can be considered to boost more interest and activities in the secondary property market, as many buyers are looking to upgrade after disposing their older units.”
What Budget 2020 needs or lacks, according to him, is a new strategy on taxation.
The concern is that reducing the threshold will allow foreigners to compete with local buyers, leading to pressure on house prices.
“Overall it is a good budget, although it is slightly lower than my expectations, especially on the RPGT because I expected more.”
The revision was in response to the people's views on the RPGT, said Lim Guan Eng.
From RTO to lower foreign buying threshold in urban areas, here is a snapshot of how the budget will impact the real estate segment
In response to this, property developer Titijaya Land Bhd said it welcomed the move.
Finance Minister Lim Guan Eng in tabling Budget 2020 in Parliament today said the government will offer this scheme in collaboration with financial institutions.
The savings enable the Government to plan for other projects to drive economic growth including Sabah and Sarawak such as the 165km Trans Borneo Highway connecting Sabah and Sarawak to East Kalimantan.
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