The STAR today reported that the property developer welcomes the RPGT.
I guess I am not surprised, as we had looked in the earlier article on RPGT, considering the fact that RPGT is not applicable to new houses sold by property developers. The immediate effect of existing sellers holding back their sale to avoid paying higher RPGT would also cause more demand to flow to new houses. It would definitely help sustain a healthy price for the developers.
Malaysia is a growing nation, with plenty of first time home-buyers providing the demand to the property market. It is also a cultural trend for youngsters to own a property as quickly as possible. These people would either buy a new development or buy a second hand house.
Buying a new development means waiting for two years plus for the house to be completed. These new buyers will be subjected to the risk of the house not being completed and at the same time they would be hit by both the rental (of their existing abode) and the installment/interest payments until they can move in and stop renting. The DIBS were supposed to help ease with the cashflow part but i guess it can be utilised by the punters too.
The other option would be to buy from the open market of second hand houses. With the RPGT, I personally think that it would cut down the supply of houses available and if the demand persist, it could still cause the house prices to increase significantly. I believe that the removal of DIBS would reign in the property speculators and price bubbles, while RPGT is just a convenient rider - not doing much to reduce speculation really.
http://www.thestar.com.my/Business/Business-News/2013/11/06/Property-developer-supports-RPGT-revision-in-surprise-move.aspx
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