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> GST zero rated now, probably abolished soon, Property Price will go down?

Fat3Twister
post May 16 2018, 11:32 PM, updated 2w ago

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As per topic, what's your view?
kradun
post May 16 2018, 11:38 PM

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bbb in kambing
Jszeon
post May 16 2018, 11:49 PM

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For sure residential will have no impact, only commercial~ Those who bought commercial must be sakit hati
innsean
post May 16 2018, 11:53 PM

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Residential properties won't be affected as no GST to begin with.

For Commercial properties eg. Offices, buyers might wait till after GST has been removed to save the additional 6% of purchase price during GST period.

Either way, would be good for real estate agents as well !

boyslikeboys
post May 17 2018, 12:09 AM

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Commercial properties should see some pressure ...
hazwan_zohdi
post May 17 2018, 12:13 AM

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QUOTE(innsean @ May 16 2018, 11:53 PM)
Residential properties won't be affected as no GST to begin with.

For Commercial properties eg. Offices, buyers might wait till after GST has been removed to save the additional 6% of purchase price during GST period.

Either way, would be good for real estate agents as well !
*
I thought legal fees got 6% gst maaaa?
ZoomGarde
post May 17 2018, 12:18 AM

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The supplies ( cement, metal) labour and etc all also subject to gst. So automatically will be higher abit also.

Meaning.. project that will be launch after june 2018 shud be commending a lower price
Nikmon
post May 17 2018, 12:35 AM

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developer could get back GST paid to gov in 2018,
hence good news for developer, developer has more room to reduce selling price for overhang unit.....

sweating for early buyer..

basically malaysia property is in carnival sale, now all waiting buy auction unit with 50% discount above

This post has been edited by Nikmon: May 17 2018, 12:37 AM
Fat3Twister
post May 17 2018, 12:37 AM

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QUOTE(Nikmon @ May 17 2018, 12:35 AM)
developer could get back GST paid to gov in 2018,
hence good news for developer, developer has more room to reduce selling price for overhang unit.....

sweating for early buyer...but all investor only buy auction unit with 50% above....
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So for those overhung units selling at 30% rebate, can ask for more rebate now hor
wongsinyee
post May 17 2018, 12:40 AM

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Properties that are already built and on the market will not see a price decrease as the construction period was during the GST-era. Subsale market will see slightly more activity due to removal of GST from legal fees and agent fees

New development might possibly see slight drop in price if the GST savings are cascaded down (but I highly doubt it)
wallpaper89
post May 17 2018, 12:44 AM

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Property developers with ongoing residential projects under construction will benefit since it would translate to immediate reduction in their costs by 6%. Unfortunately, these savings will not be passed on to buyers, for those whom snp has already been signed.

However these savings are unlikely to last throughout the project lifetime, since sooner or later the govt will have to introduce a replacement tax (SST or increase gst)

Buyer can only hope for developer to pass on some of these savings to buyers in the form of better finishing, fittings and overall project quality.
Fat3Twister
post May 17 2018, 12:58 AM

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QUOTE(wongsinyee @ May 17 2018, 12:40 AM)
Properties that are already built and on the market will not see a price decrease as the construction period was during the GST-era. Subsale market will see slightly more activity due to removal of GST from legal fees and agent fees

New development might possibly see slight drop in price if the GST savings are cascaded down (but I highly doubt it)
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Before GST era professional fees also kena 6% SST. So probably after GST becomes zero rated SST will be imposed.
But i remember reading somewhere SST will only be re-introduced after 2 year? so probably 2 year nonid pay 6% rclxms.gif
Nikmon
post May 17 2018, 01:14 AM

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QUOTE(wongsinyee @ May 17 2018, 12:40 AM)
Properties that are already built and on the market will not see a price decrease as the construction period was during the GST-era. Subsale market will see slightly more activity due to removal of GST from legal fees and agent fees

New development might possibly see slight drop in price if the GST savings are cascaded down (but I highly doubt it)
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you quote "subsale market will be more active due zero GST", this statement seem like not making any sense, and close to idiot

developer continues increase rebate from 10% to 30% but overhang unit still increase year to year.

subsale market has been soften and some even drop 5% to 10% , it can not help, worst still many unit gave more than 30% -60% discount in auction.

after so much discount still cant live up the market, some idiot claim abolish 6% GST could increase the transaction.....

This post has been edited by Nikmon: May 17 2018, 08:56 AM
memekfalui
post May 17 2018, 08:34 AM

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So BBB mode on for subsale own stay market??

Gonna start putting ads now!!
newsongfashion
post May 17 2018, 09:10 AM

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QUOTE(innsean @ May 16 2018, 11:53 PM)
Residential properties won't be affected as no GST to begin with.

For Commercial properties eg. Offices, buyers might wait till after GST has been removed to save the additional 6% of purchase price during GST period.

Either way, would be good for real estate agents as well !
*
Although there's no GST on the residential properties, but the construction cost eg. Construction material to build the property already carried the GST, so the purchaser indirectly paying for the price.
wallsticker
post May 17 2018, 09:39 AM

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I just booked a residential condo....haven't even starting apply loan....
blink.gif

don't know price will go down or not after GST gone zero....haizzzz
icemanfx
post May 17 2018, 09:49 AM

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At zero rated GST, developer should have saving from materials supply and services. Whether developer will transfer this saving to buyers is another matter.

cherroy
post May 17 2018, 09:51 AM

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The main driving force of property price is always the demand and supply, not whether developer can save on GST or not.

Eg.
1. last few year we saw GST lead to higher cost of materials, but we do not see property price escalating, as demand is weak and supply is abundant.

2. There was no GST before 2015, but a lot of property price doubling during the period 2008 to 2015, because demand was "hot" back then.

The cost of materials affected main developers financial bottom line, instead directly toward property price.

aaron1717
post May 17 2018, 09:53 AM

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QUOTE(cherroy @ May 17 2018, 09:51 AM)
The main driving force of property price is always the demand and supply, not whether developer can save on GST or not.

Eg.
1. last few year we saw GST lead to higher cost of materials, but we do not see property price escalating, as demand is weak and supply is abundant.

2. There was no GST before 2015, but a lot of property price doubling during the period 2008 to 2015, because demand was "hot" back then.

The cost of materials affected main developers financial bottom line, instead directly toward property price.
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price not escalating as much as materials cost... but per sq ft wise is definitely still getting more expensive... and density per acre getting higher... 380k for 650 sq ft in a 3000 units project is considered expensive already...
tiensong
post May 17 2018, 10:38 AM

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For new project, what should I do if developer doesn't want to revise the selling price if no GST and SST within the development period. Cancel booking now and wait or continue? please advise

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