SST has very specific and limited application. The principal of charging is "if it is not specified, it is not taxable". GST is the other way round "if it is not specified, it is taxable" Steel bars, concrete, cements are all basic building material. As far as I know, the only raw material that the manufacturers paid SST is plastics which is 10%. But plastics is only a negligible cost in their production chain. So, the effect of GST on construction industry has very wide implication. As you said, the margin of suppliers are already very thin. So if the suppliers don't pass on the GST cost to the developer, they cannot survive. So on the supply side, developers' cost will increase is without question

As to whether the developer's cost can be passed down to home buyers, it depends on the specific market. Heck, if the market is still hot, the increase will be more than 6%

I think the gomen is trying to hit down the prop price, at the expense of flippers and developers. If gst is used as a reason to increase the prop price beyong existing level, the gomen will come out with something new again. They try to implement gst in 2015 and not immediately, probably wants to see the impact as well.

Developers will always raise prices of new launches because they arent subjected to valuations. The problem is in the secondary market and those who bought thinking they can flip easily upon VP

What is the name of the condo which u want to purchase?

Guys may i ask you experts here any chance Property in Penang will have a huge drop this year??? Bcs over the weekend i followed relative to look around for houses in the Tanjong Tokong area like Straits Quay, the property price there are almost 2 million. The prices are impossible for any family to buy.

I dont expect any drop actually. Worse case scenario would be a stagnation. Dont expect any huge drops. That wont happen and Bank Negara wont allow it to happen.

Wow but Penang property prices are by the millions. Average looking house already almost 2 mil??? People buying??

Sorry. Its not quite clear. R u saying Penang properties are all falling like crazy?

Nope i am asking will these crazy prices drop this year???

Correct Malaysia is the only country in the world that which properties would "never ever" faced price drop, all those problems faced by other countries like US, PIGGS, Singapore will never happened here, our country will become developed nation by 2018 & income per capital will double, triple every few years, soon we will overtake Japan, South Korea, Hong Kong, Singapore, Taiwan & become Asia No.1 super power economy.
Our bank negara have so much money that they can compensate every flipper who loss money in properties flipping.
If those American, Spanish had consult our Bank Negara they would not end up where they r today, because we have secret fomula for indestructible properties market.

This post has been edited by jolokia: Jan 11 2014, 04:28 PM

oh....
Start to drop, whistle blow here fast, k?

I don't know about Penang. However, high end properties in KL and selangor are dead since last year. Whether it will drop or not "this year", maybe flipping a coin will be just as accurate.

Nobody knows for sure, including so called "experts", what the market will be in the near future. Majorities of the investors are taking a look and see strategy. What I knew from people around me is that, if they are not financially strong, holding several properties on hand now making them "shaking legs"!

High end means around how much$? To some ppl rm1m = high end oso...

If "experts" all so 'chun' hor, all turn "li ka shing" oledi....

lol sarcasm to the max

Those more than 700K subsales are extremely slow in KL and selangor. Some bungalow and semi D more than 1.5 mils are not moving at all.

Hahaha So true lol

All the signs you mentioned are there. Why suddenly you said worse case only stagnation ? Any new info that change your view ?

So if it's ur money will your buy property in Penang this year or wait?

I dun know Penang Property well enough to comment this. But if it is in KL and selangor, I will wait, as the price is stagnant now.

R u property agent?