Property Developers - Of RPGT and GST… Get ready for demand to surge!
Property sector-wise, expecting only RPGT hikes for Budget-2014 . For the upcoming Budget-2014’s potential impact on property sector, we are only expecting RPGT hikes (30% from 15% for properties sold within 2 years, 15% from 10% for properties sold within the 3-4 years, 10% remains unchanged for properties sold in the 5th year and zero RPGT for properties sold in the 6th year onwards). We believe this has been largely been discounted and priced-in somewhat, but we do expect some slight knee-jerk reactions for a couple of weeks post announcement. We do not expect any other overly harsh measures (e.g. stamp duty hikes, banking measures) as these may have severe repercussions on the economy. Historically, the government only implements one drastic fiscal measure within a year. This also applies to Bank Negara Malaysia’s (BNM) measures and so far, we have already seen one i.e. reduced mortgage tenures to 35 years from 45 years in Jul-13. We also expect more measures on increasing afford...