Adjustment In Market Prices Of Houses Likely – SPNB
The adjustment of the market prices of houses is expected to be seen in the third or fourth quarter of next year after the implementation of the Goods and Services Tax (GST) in April.
Syarikat Perumahan Negara Bhd (SPNB) president Datuk Dr Kamarul Rashdan Salleh said the adjustment would occur when the cost of building materials returned to normal or was cheaper a few months following the introduction of the GST.
“I am confident the reduction in prices of building materials would happen three or four months after the implementation of the GST, leading to the adjustment in market prices of houses to a more stable level or cheaper,” he said in an interview with BernamaTV Tuesday night.
He said the introduction of the GST should not be the basis for the increase in house prices as the rakyat until now do not know the goods that would be subjected to the new tax.
Property developers would use the GST as an excuse to raise house prices to take advantage of the increase in the cost of materials, he said.
“So it’s up to the government to undertake transparent and correct measures to avoid the increase in house prices,” he said.
According to Kamarul Rashdan, raising house prices due to the increase in construction cost was not proper as there wasn’t an apparent rise in cost since the oil crisis in 2008.
However, he said from 2008 till now the obvious increase was in the price of land and this was the reason for the rise in house prices.
“When land is sold at a high price, the purchase cost is passed on to the buyers, who have to bear the high cost of house prices,” he said.
Meanwhile, Umno Federal Territory Youth Chief Mohd Razlan Muhammad Rafii said the property incentives contained in the 2015 Budget was good news to the youth community who want to own houses.
He said the high price of houses was the main obstacle for the youths to own houses.
“There’s opportunity for us to address this issue by building affordable housing for youths at lower prices,” he said.
Budget 2015 announced the establishment of the Youth Housing Scheme through smart partnership between the government, Bank Simpanan Nasional, Employees Provident Fund and Cagamas.