In last Friday’s issue of NST: RED, I was also asked to give my opinion on the property market outlook for 2013.
My views as extracted from the Cover Story: Moderate Expectations, is reproduced below:
Richard Oon, National Tax Director of TY Teoh International:
Budget 2013 has implemented several moves to further curb property speculation. One of these was the further increase in RPGT (Real Property Gains Tax) rates from 10 to 15 per cent for properties that are disposed of within two years from the date of acquisition, while those sold within three to five years will be subject to a RPGT rate of 10 per cent instead of the previous 5 per cent. My opinion is that this increase will have little effect on property speculation as the incremental 5 per cent increase in the RPGT rates would not be material. Besides, speculators who purchase properties from developers upon launch would probably sell them upon completion which would be more than two years later subjecting them to only 10 per cent RPGT rate.
The other move, which in my opinion will yield better results in curbing property speculation is the allocation of RM1.9 billion by the government to provide 123,000 units of affordable housing to the public through several government agencies. Although the full impact of the government’s initiatives to curb speculation may not materialise fully in 2013, I expect property prices to cool down somewhat in 2013.
The newsprint version can be viewed below: