Property prices are expected to drop following the goods and services tax (GST) rate reduction to zero from 6% prior, said the Real Estate and Housing Developers’ Association (Rehda) president Datuk Seri FD Iskandar.
“Construction material prices and costs should go down. But we expect big-ticket shopping to be delayed until June [when the new rate takes effect],” he told EdgeProp.my.
Moreover, he praised some developers who had already lowered their prices in response to the new GST rate and hoped that more will follow suit.
“GST is about 2% to 4% of our cost… it is good that some have reduced prices. In the long run, the savings should be passed on to consumers. Hopefully, there will then be a higher number of people looking at properties,” he added.
Media Title: The Edge Financial Daily
Date: 18 May 2018