Commercial units to the fore

Posted on
Share this article   

Sales and Service Tax will likely boost investor demand for factories and shoplots

DESPITE the government having announced that the Sales and Service Tax (SST) will replace the Goods and Services Tax (GST) in September, investors could look forward to opportunities in the property market.

Total Realty head of marketing Dr Kho Chng Guan said that although the full extent of the new taxation may not be felt as yet, an unexpected segment of the property market could be enticing to investors. That segment covers commercial properties.

“Previously, there was no GST when buying residential properties but professional services such as assigning a lawyer would incur GST.

“Come September, SST will likely be charged even for residential properties.

“The market for commercial properties such as shoplots and factories had been stagnant over the past few years because investors had to pay an extra 6%. For example, if you bought a RM2mil shoplot, you would have paid RM120,000 more.

“We can see why commercial properties were not selling well then. In the near future, I foresee a rise in demand for factories and shoplots,” he said.

Dr Kho believes that with the implementation of SST, businesses will get a new lease of life because the new tax should spur growth for enterprises.

“With SST in place, more people would want to do business because of cost reductions. I also foresee an increased demand for rent and sales.”

doc70h5ayrc86r1dq46x3tn

On the government’s decision to slash mega projects such as the high-speed rail (HSR), Kho said there are other avenues in the market that would still be suitable for investment.

“If you are keen to invest in property, you should be looking at places that are mature because new infrastructure projects such as the MRT and LRT create opportunities.

“Consider those completed units that are located near to amenities such as public transportation; there’s lots more to invest in,” he said.

Asked which areas would be best for investment, Kho said that both secondary and primary properties have their pros and cons that buyers need to consider.

With experience in the sub-sale market, he said there are advantages that make secondary properties an attractive proposition but it depends on the buyer’s preferences.

“A sub-sale property has its advantages -- you can view it, everything is set in stone, it has already matured or is maturing.

“The problem is that you need to come up with a 10% down payment, legal fees, and perhaps renovation costs.

With plenty of completed units available in the market, developers are offering incentive packages that include rebates, absorption of legal fees, and help with loan application. This is good for the buyer who will be able to save on costs,” he added.

 

Want to contribute articles to StarProperty.my? Email: editor@starproperty.my
Related News

Fresh from the news oven

11:10 AM
News & Articles
16:10 PM
News & Articles
16:07 PM
Home & Living
Latest News

Stories and news that might pique your interest

23:07 PM
News & Articles
00:07 AM
News & Articles
19:07 PM
News & Articles
14:07 PM
News & Articles
14:07 PM
News & Articles
00:07 AM
News & Articles
12:03 PM
Home & Living
17:03 PM
Featured
12:04 PM
News & Articles
17:01 PM
News & Articles
23:07 PM
News & Articles
00:07 AM
News & Articles
19:07 PM
News & Articles
14:07 PM
News & Articles
14:07 PM
News & Articles
00:07 AM
News & Articles
23:07 PM
News & Articles
00:07 AM
News & Articles
19:07 PM
News & Articles
14:07 PM
News & Articles
14:07 PM
News & Articles
00:07 AM
News & Articles
09:05 AM
Home & Living
09:04 AM
Home & Living
10:03 AM
Home & Living
10:02 AM
Home & Living
16:08 PM
Home & Living
11:08 AM
Home & Living
16:07 PM
Featured Dev
16:07 PM
Featured Dev
15:07 PM
Featured Dev
14:07 PM
Featured Dev
14:07 PM
Featured Dev
14:07 PM
Featured Dev
10:07 AM
Events
16:04 PM
Events
14:03 PM
Events
12:02 PM
Events
14:04 PM
Featured
09:03 AM
News & Articles
09:10 AM
Awards 2018
17:10 PM
Best@
09:12 AM
News & Articles
10:08 AM
News & Articles
13:04 PM
News & Articles
16:03 PM
News & Articles
12:07 PM
潮樓產業
14:07 PM
潮樓產業
10:07 AM
潮樓產業
16:07 PM
潮樓產業
14:07 PM
潮樓產業
12:07 PM
潮樓產業