BNM seeking inputs on property gains tax

Property developers are concerned that imposing fresh regulation will be an unwelcome game-changer.


Petaling Jaya: Bank Negara Malaysia had consulted property developers, seeking their inputs on increasing the real property gains tax (RPGT) to curb speculation, people familiar with the matter said yesterday.

Such a move, if announced in the upcoming Budget 2012, will be the second time the central bank will have moved to curb excessive speculation in the property market this year.

Early this year, the government capped loans for buyers of third property to 70 per cent.

Glomac Bhd's group managing director, Datuk FD Iskandar FD Mansor said the impact of RPGT will depend on what rate and form the RPGT will take.

"Such concerns were possibly relevant last and early this year, but since April, the situation has cooled down," said Iskandar after the company's annual general meeting yesterday.

"I hope they don't do it. It is not necessary," he said. Developers are concerned that imposing fresh regulation will be an unwelcome game-changer. This is because of concerns on the global economic situation.

"What we need are clear and transparent guidelines which will not deter foreign investors away," said Iskandar, adding that for Glomac, only a neglible five to 10 per cent of their buyers are speculators.

In the Budget 2010, government had reimposed the RPGT at 5 per cent, which took effect January 1 2010.

Meanwhile, Iskandar told reporters that Glomac will be launching properties with gross development value of RM3.8 billion in the next few years Its current unbilled sales stand at RM550 million.

This year, it will launch several projects such as RM250 million Mutiara Damansara residences, RM250 million commercial project Glomac Cyberjaya 2, and RM400 million mixed development project, Glomac Utama, in Petaling Jaya.

He is confident that Glomac will maintain its good earnings in the current financial year ending April 2012.

"We have various types of property. Our township projects are doing well with record sales, there is a good take-up rate for our commercial property, while our strata title properties are still doing good."

He pointed out that withbanks being in strong position and highly liquid, the property market, especially in Kuala Lumpur, is still in good demand with confidence level still strong.

Iskandar said Glomac is not active in exploring opportunities abroad as "there are plenty of opportunities in Malaysia itself, especially in the KL Greater Area which cannot be missed". - By Roziana Hamsawi