Properties in new launches to be at least 5% cheaper
Following numerous calls for lower property prices, the Real Estate and Housing Developers’ Association Malaysia (Rehda) has come out to say that house buyers can now expect prices to be at least 5% lower for new launches.
This is partly attributable to 2.5% to 5% of savings for developers after the exemption of the sales and services tax (SST) on basic construction materials and all construction services.
“Together with other discounts and rebates that most developers are currently offering in view of the soft market for new launches, house purchasers can look forward to lower prices of minimum 5% depending on the location and type of product,” said Rehda president Datuk Soam Heng Choon in a statement today.
He, however, stressed that the quantum of savings for developers is dependent on the type of developments and will only be applicable to new projects as prices for those projects during the goods and services tax (GST) era would have been agreed upon with the contractor, and are already in various stages of completion.
“Under the GST regime, residential property developers were unable to claim input tax credit and had to absorb the cost increase but with the abolishment of GST and the above waiver from SST, we should expect to see some savings in development cost,” he noted.
Hence, Soam said, Rehda is encouraging all developers to pass on this savings back to purchasers in the form of price reduction.
Finance Minister Lim Guan Eng has repeatedly asked developers to cut property prices and threatened to review the SST waiver on construction materials if developers refuse to lower property prices.
He also stressed that what the government wants to see is house price reduction and not additional perks such as freebies and rebates by developers.
Meanwhile, Rehda hopes that all stakeholders will work together to look at ways to reduce the input cost of the property development business and in particular compliance cost so as to enable property prices be reduced further.
Source: TheSundaily.my
Smaller size, cheaper materials, higher density, ………………
Mr Soam, have you reduced all your prices for IJM development yet?
If you failed to do so as a role model, nobody will follow.
Your 3 Residences price is still maintain at 700psf. Anyone who hold this project please wait.
Mr Soam will reduce to RM630psf very soon!!
This might be a joke…since SST start all the material pricing is rise how come the house can be less 5%??
Because all new houses are exempted from SST for construction services and building material as said by our Finance Minister LGE.
Price cheaper is easily observed. However, with cheaper price how do know others are compromise ie material quality, density, space or size and even facilities qualities could be very subjective to deviate from the original plan. Those are not really spell out during the sales and not in contract
So, all those people who invested their hard earned money to buy their first home in the last few years… are screwed… they just lost 20K (assuming 400K property)… a few years savings… sad.
Good news,
the government will now manipulate all import and construction material services and which will be sell at fixed price without any inflation or currency fluctuation.
-by our finance minister : budget 2019
price will now all reduce 10%
-by IJM Managing Director : Suam (so whoever buy IJM project, please on hold or call and ask for discount!!!)
I’m so happy, thanks to the integrity and efficiency of the government.
I bought affordable house RM400k almost 2 years ago and paying progressing billing for almost 2 years (2x RM1000) averagely.
Now my property became RM360k – RM20,000 = RM340,000. a 15% cut from my original price.
does not include inflation and currencies depreciation. total maybe about 20% lost.
Kudos to our Finance Minister
price goes up, complain, price comes down, also complain. so difficult…
@ Cash King, okay, maybe you are right. Let’s reduce the prices some more, let the people owe the bank 400K, while their asset is only worth 300K or less. Bravo.
All these are called LUCK and timing lo.
Only can thank or blame our LUCK only lo.
Well, if u buy affordable house to stay (really stay), not selling yet, then, NO lost yet ma.
Investment means can earn OR lost money one, no sure win one.
Aiyo, don’t fall for all these political rhetoric. Even before the exemption of SST/GST, properties have already come down more than 15%, especially those priced 1mil and above. For those sellers who refuse to reduce price, stuck lor.
@Vicky
True, if you’re not experienced, you need luck. But there is actually a sure win formula for property investment, which requires only basic maths, and the discipline of stop listening to the bu11shit of property agents and the so-called “property gurus”. Cheers!
thats why we have to thank our minister for such good proposition.
first : introduce affordable house
2nd : promote affordable house
3rd : encourage ppl buy affordable house
4th : built more affordable house.
5th : reduce price for affordable house 10%.
i also don’t know what to say, paid interest for about 20k, house not yet complete. already -10%
Developer can reduce their property price, but without any car park (1 car park for 50k). So those people who bought earlier, i.e. 400k with 2 side by side car park still consider as a gain. Why focus only on affordable house, we should look for 600k above for investment purpose or capital gain.
@affordable owner
If your uppermost concern when buying an affordable house (since you mentioned interest of 20k, I suppose it’s one of those 300-400k affordable condos) is the resale value, then you should have bought one in a prime location (eg. I-santorini) in which there will be no more such condos being built in future, and therefore the resale price will not be dictated/affected by the price of subsequent new affordable condos. But if your main purpose of buying one is for own occupation due to the proximity to work place (eg. Bayan Lepas area), then you shouldn’t be worried about the current immediate market price since it’s close to your workplace and you’ll be staying in it for some time. So you have to be clear what you want so that you won’t loose sleep over something that does not matter.
Agree. Where you people buy affordable to flip.
@affordable owner
Affordable house by right already 20% cheaper than market price. Need to apply some more.
Dont worry…house price wont be cheaper…bcoz i am the one who supply material for developer construction…since our goverment say material will exception SST but why the price of material still be increasing?? All the merchant just want to earn money, so the price wont going down but it will just up and up again…this is call inflation…just a example for those of u, after CNY u try to see how much the food will selling at kopitiam..price will up again
@Kingsmen
What you said is not always true. In fact, property prices in general have come down ~15% since it’s peak a few years ago. This is called price deflation.
I didn’t knew nor heard or Property that has price called Deflation. don’t act smart. property prices come down affects on location and area only. everyone knows about bayan baru and bayan lepas area which is overflooded with thousands and thousands of supplies.