The government is expected to introduce some relief measures for first-time home buyers under the 2015 budget, according to MIDF Research property analyst Ahmad Annuar Abdul Rahman.
These include a 50 percent discount on stamp duty and/or reinstating the Developer Interest Bearing Scheme (DIBS) for this group of buyers. The authorities could also impose a Goods and Services Tax (GST) rebate for construction materials used for low- to medium-cost homes.
“Assuming our expectations prevail, this should benefit companies such as LBS Bina Group Bhd, Glomac Bhd and IJM Land Bhd, which have a good mix of medium- to low-cost properties,” he said.
As for the Real Property Gains Tax (RPGT), Ahmad Annuar feels there will be no changes to the prevailing policy. However, there’s a possibility that the government will introduce stricter lending rules and raise the interest rates of housing loans.
Prime Minister Datuk Seri Najib Razak will announce the annual budget’s details this Friday.
Meanwhile, real estate prices are forecasted to rise further in spite of the cooling measures unveiled in Budget 2014, because it only tackles speculators and not the other culprits behind the spiralling prices, such as construction costs and compliance costs imposed by the federal and state authorities.
“We expect the increase in prices to be mitigated by GST exemption on the affordable houses below RM600,000. The high-end properties are likely to be less sensitive to the GST,” he added.
Farah Wahida, Editor of PropertyGuru, edited this story. To contact her about this or other stories email farahwahida@propertyguru.com.my
