Property investors and developers urge government to clarify anti-profiteering act

Property investors and developers want clarifications from the government on the implementation of the Anti-Profiteering Act 2011 alongside the Goods and Services Tax (GST).

Managing partner of Syarikat Ong and Tax Consultants, Agnes Wong, said although the government has outlined the guidelines and formulae for the property market, it was still unclear how the property investors and developers would face the GST, with certain issues still needing answers.

“The government has announced that they should observe the Act to ensure that there is no excessive price increases after making some adjustments for the GST.

“But what benchmark the government is going to use when making the comparison? If it is January to April 2015, I would say that prices are already high. So, how is the government going to control prices of properties?” she said.

Wong said this at a media briefing on the Property Outlook Conference 2015 (POC 2015), which will be held from Jan 10-11, 2015 here.

The POC 2015, which is expected to attract 1,200 real estate investors, first-time home buyers, developers and other property market players, will focus on the outlook and development for the property market.

The event will bring experts and gurus to also focus on the impact of GST and Budget 2015 on financial planning and investments as well as secondary markets.

Meanwhile, president of Malaysian Institute of Estate Agents, Siva Shanker, said some property market data should be made available to the public.

“I think if some of them can be disclosed, it might be good for people to know the selling prices for certain properties and this could also reduce price speculation.

“The speculation has increased the property prices by 30 per cent to 40 per cent for the past three years,” he said.

He said although the outlook of the property market may not be positive next year, the investors and home buyers would benefit in the long term.

Meanwhile, certified financial planner and property guru, Milan Doshi, advised investors and home buyers to be knowledgeable before purchasing any property.

“You should know the location of property you intend to buy and re-look at the types of property, whether it is secondary property or new.

“Most importantly, you need to understand the process and procedures when buying, including the legal and finance aspects of it,” Milan said.— Bernama