Analysts expect RPGT to increase to 30% in Budget 2014 and pre-GST rush next year
The local property sector may only see a real property gains tax (RPGT) increase in Budget 2014, according to a report by Kenanga Research.
It said it was expecting the tax rate to increase to 30% from 15% for properties sold within two years and 15% from 10% for properties sold within three to four years.
It said the 10% rate would remain unchanged for properties sold in the fifth year and zero RPGT for properties sold in the sixth year onwards.
“We believe this has been largely been discounted and priced-in somewhat, but we do expect some slight knee-jerk reactions for a couple of weeks post announcement,” it said. Budget 2014 will be tabled on Oct 25.
Kenanga Research also said the market could experience “panic buying” by investors next year if the goods and services tax (GST) was implemented in 2015.
“Experience from other countries had seen such trends in anticipation of future cost push inflation on asset prices.
Source: StarProperty.my
Wow…GST push up material prices. Govt earn money.
RPGT up, again govt earn money.
Seller will just have to pay more tax.
Buyers will suffer more from higher property price due to TAX.
In the end, Govt will gain from everyone.
Hopefully just 5 year…don’t more than that. Acutally they should add in 1 clause, Period start OC not stamping the S&P.
RPGT increase plus difficult to obtain loan, sure will have some impact on property market, everyone compliant on cost living and expenses increase. Penang ppls pay very low compare to KL but property more expensive than KL.
Increase of taxes will just increase the selling price, as the owner wanted the same profit. Yup, it definitely will slow down the market, but maybe in a short term, but don’t think the price will drop as the cost has increased dramatically.
@soo
Because penang state gov “dreaming” mah, dunno what’s going on, sold one big piece of land to Ivory, and the next thing you know, this guy is printing money by reselling the land piece by piece to other developers…:D The state has lost control of the situation.
They should pump in good quality affordable gov housing into the market ASAP. Those smart and hard working engineers in Bayan Lepas are getting priced out of their dream homes…:)
@Ng,
So your selling price will be highest for the 1st year, than gradually go down until after the 5th year, suddenly crash?…:D
Ya, Selling land to this developer but no affordable project launch by this developer, Tropica bay 400 sf ft launch below 400k more than rm800 per sqft, unfair for penang ppls. What happen to Jalan chennaiya affordable home project, dont think state will built affordable home at this area,
Everybody want sea facing 1000sf for 300k at Queensbay. Offer them 1000ft for 250k at teluk kumbar they complain too expensive. Guess who is dreaming..
Inflation will kill the property price.
It delays those plan to upgrade or to buy 2nd house.
Only those buy 1st house have no choice but to buy. But, this group of young buyers are buying the lower tier of house.
whow, government sure earn till gigi jatuh lo