With the implementation of the sales and services tax (SST), homebuyers in Penang can now look forward to lower priced homes, as a developer interest group has decided to slash their prices by six to 10 percent.
This comes as developers pass on the savings from the SST exemption on raw materials such as rocks and cement, said Toh Chin Leong, Penang branch chairman of the Real Estate and Housing Developers’ Association (Rehda).
He noted that the six percent drop in prices are for properties in the affordable housing segment of below RM300,000. Prices for homes above RM300,000 can be cut by 10 percent, reported Free Malaysia Today.
Previously, these items were charged the goods and services tax (GST), which were passed on by developers to property buyers.
“We welcome the SST. It is very good, the government now has removed (taxes on) several raw materials, concrete and cement. Some finished materials are still taxed but at a reduced rate,” said Toh at the Setia Convention Centre.
“We can afford to sell at lower prices now due to the reduced costs. We advise our members to pass the savings to the buyers. We should not be taking advantage.”
Finance Minister Lim Guan Eng, who was also present at the press conference, lauded Penang REHDA’s move, which he described as a good corporate social responsibility.
With this, he urged other property developers in Malaysia to follow Penang REHDA’s decision to slash prices.
Image sourced from IJM Corporation Bhd
This article was edited by the editorial team of PropertyGuru. To contact them about this or other stories email editorialteam@propertyguru.com.my
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