Posted by calvintaneng > 2014-11-17 12:55 | Report Abuse

Rise in House Prices after GST Temporary?

Calvin Tan Research think otherwise for these reasons

1) Gst is 6% for all construction related material. Developers will definitely raise house prices by at least 6%.

2) The Media says only 3%. Who will bear the cost of the other 3%? Will the Developers absorb the other 3% price rise? Of course not. See reason number 3

3) With the increase of Ron95 petrol & Diesel by 10% transport charges are also up by the same margin of 10%. So expect up to 16% price rise - 6% Gst & 10% petrol rise. Profit margins are now being squeezed left and right. Developers might resort to cutting costs & also cutting corners. Example is using cheaper cement bricks instead of red bricks, and more inferior China steel than local ones for new houses.

4) The experience in Singapore - when Singapore Govt increased Gst by 7% real estate prices rose in tandem by a corresponding 7%.

Conclusion.

Expect Real Estate Prices in Malaysia to rise by at least 6% or more after Gst. The only solution to avoid price rise not only in real estate, but in all levels of society is to postpone or call off Gst.

The only way to protect from impending Gst price rise of between 6% to 16% is to buy before Gst is implemented. It is better to sell Stocks & Shares & put into Real Estate to protect from Further Rising Real Estate Prices in Malaysia now.

By Calvin Tan Research, Singapore

Posted by marc11 > 2014-11-17 18:05 | Report Abuse

This is for subsales or new launch?

Posted by Sean > 2014-11-17 19:57 | Report Abuse

personally think, calvin is correct... both market subsales & new launch will be impacted as well... :P