9th August, 2012
KUALA LUMPUR: The Malaysian Developers’ Association (MDC) is urging the government not to impose additional stamp duty or make changes to the current Real Property Gains Tax policy.
In a statement yesterday, MDC said amid a plateauing demand in the residential market and an increase in the supply of commercial office units, any change in policy will only negatively impact the housing market and deter foreign investment into the country.
Any changes to the policy will also further discourage foreign investment as well as affect property sales and occupancy rates, it said.
The call was made by the association following the 16th MDC council held recently.
The MDC comprises the Real Estate and Housing Developers’ Association, the Sabah Real Estate and Housing Developers Association and the Sarawak Real Estate and Housing Developers’ Association.
The association also said much of the increase in the Malaysian property price was due to the increase in input cost.
“Increases in basic building materials which are major components of construction cost, land and compliance cost, will ultimately lead to higher selling price of houses,” it added.
It also sought intervention from the government to ensure fair and equitable pricing for cement.
It said the recent announcement of a rise in cement price was untimely and that its pricing should be lower due to the economy of scale with the anticipated rise in infrastructure and building projects in the country.
The council said it is also encouraged by the receptiveness of some state governments to consider favourably implementing affordable housing, which is market driven as opposed to and in place of low cost housing.
“Whilst we empathise with the increasing housing price which is presently affecting the public, we would support any initiative to move away from the subsidy policy,” it added.