GST may affect property market but not for long, says PBB
Published on: Friday, March 06, 2015
Kuala Lumpur: The implementation of the Goods and Services Tax (GST) in April 2015 may have some impact on the property market but not in the long term, said PPB Group Bhd Chief Operating Officer (Properties) Chew Hwei Yeow.He said despite the impact on the property industry and the recent downturn, the group believes it will still perform satisfactorily."If you're a financially sound developer with good products and attractive pricing, you should be able to maintain sales," he said at a media and analysts' briefing here Thursday.
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Chew said due to the Malaysia government's cooling measures, buyers are now less speculative and are seen making more well-informed decisions. "With the GST and downturn, launches have been reduced. As such, supply has also been reduced. In that sense, property prices could actually go up because of this reduced supply," he said. The group recorded a 50 per cent take-up rate for Tower 1 of its Southern Marina project in Puteri Harbour, Iskandar Malaysia, translating into RM150 million in unbilled sales. The project, a 12.5 acre freehold integrated development, has a gross development value (GDV) of RM1.5 billion.
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Tower 1, which comprises 220 condominium units, is part of the first phase of development that will have 456 residential units with a GDV of RM650 million.Chew said despite a generally soft property market, the preview has generated keen interest from buyers not only from Johor Baharu but also from Kuala Lumpur, Singapore and around the region.
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