Malaysian property
sales seen declining after GST
PETALING JAYA: Property transactions are
expected to decline by about 10%, with house prices
remaining flattish or rising slightly by 3% to 5% upon
the implementation of the goods and services tax (GST)
on building materials, research house JF Apex Research
said.
The imposition of the 6% GST will start on
April 1 this year.
It anticipates the property
market to moderate across the board, especially in the
Klang Valley, Penang and Johor for all types of
residential property, due to the challenging economic
outlook, stringent mortgage approval, the Government’s
cooling measures and the wait-and-see approach by buyers
upon the implementation of the GST.
Developers
that focus on the mass-market residential property
segment, priced between RM300,000 and RM800,000, as well
as with minimal exposure in Iskandar Malaysia, are
expected to be more sustainable in their growth this
year, added JF Apex Research.
“This segment is well-supported by genuine buyers who
look for owner-occupied property,” it noted in a report
yesterday.
The research house expects fewer new
launches from developers moving forward amid weak
consumer sentiment, and that more products in the market
would be focusing on medium-cost housing, with smaller
built-up areas but high average selling prices, aiming
for genuine buyers. |
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Meanwhile, CIMB Research said property sales in the
first quarter of the year would maintain the
momentum from the second half of 2014 on the back of
renewed confidence and expectations that property
prices would rise post-GST implementation.
However, it noted that buyers would likely adopt a
wait-and-see attitude for six to nine months after
the implementation of the GST, which is in line with
typical consumer behaviour in most countries.
“The net effect is that 2015 could end up being a
similar year to 2014 in terms of property
transactions, which we would categorise as a
lacklustre year,” CIMB said in a report.
The
research house has downgraded the sector to
“neutral” from “overweight”. It has also downgraded
UEM Sunrise Bhd to a “hold” from a “buy” and SP
Setia Bhd to “reduce” from “hold”.
“UEM
Sunrise was the worst performer, as Iskandar
Malaysia has been hit hard by the cooling measures
as well as concerns of oversupply from China-based
developers,” it said, adding that the successful
launch of UEM’s maiden project in Australia had
helped cushion the blow.
“In view of very
difficult property market conditions in Iskandar
Malaysia, UEM Sunrise will likely continue to rely
on new launches in the Klang Valley and Australia to
drive sales in 2015,” it noted.
Source:
BUSINESS NEWS, dated 06-01-2015.
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