Property stocks skid on property gains tax
Publish date: Wed, 28 Aug 2013, 11:04 AM
Property counters dived on Wednesday amid news that the government is considering an increase in the real property gains tax to stabilise house prices.
The Kuala Lumpur property index was 3.14 per cent lower at 1,210.46 points, its lowest since April 29, underperforming the benchmark index's 1.39 per cent slump.
Malaysia's government is exploring the possibility of hiking the real property gains tax (RGPT) to rein in rising housing prices and curb speculation in the market, state news agency Bernama reported on Tuesday.
Bernama quoted Housing Minister Datuk Abdul Rahman Dahlan as saying that a minimum property purchase price of RM1 million for foreigners is also being studied.
"Both the proposals of higher RPGT and minimum purchase price for foreigners are expected to further dampen the sentiment towards property purchase," Hong Leong Investment Bank said in a research note on Wednesday.
"Any correction in the property prices could further affect consumer spending through negative wealth effect," the broker added.
Property stocks such as UEM Sunrise and Mah Sing Group that are exposed to the high-end and luxury segments targeted by property speculators, were down 4.15 per cent and 2.84 per cent respectively at 9.42am in Kuala Lumpur.-- Reuters
The Kuala Lumpur property index was 3.14 per cent lower at 1,210.46 points, its lowest since April 29, underperforming the benchmark index's 1.39 per cent slump.
Malaysia's government is exploring the possibility of hiking the real property gains tax (RGPT) to rein in rising housing prices and curb speculation in the market, state news agency Bernama reported on Tuesday.
Bernama quoted Housing Minister Datuk Abdul Rahman Dahlan as saying that a minimum property purchase price of RM1 million for foreigners is also being studied.
"Both the proposals of higher RPGT and minimum purchase price for foreigners are expected to further dampen the sentiment towards property purchase," Hong Leong Investment Bank said in a research note on Wednesday.
"Any correction in the property prices could further affect consumer spending through negative wealth effect," the broker added.
Property stocks such as UEM Sunrise and Mah Sing Group that are exposed to the high-end and luxury segments targeted by property speculators, were down 4.15 per cent and 2.84 per cent respectively at 9.42am in Kuala Lumpur.-- Reuters
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CS Tan
4.9 / 5.0
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Jonathan Keung
the government has more issues at hand. weakening ringgit against major currencies is indirectly raising inflation. foreigners exiting our bonds and equities market to channel back home their resources. KLCI dropping plus flip flop policies. the last thing they have on their mind is to discourage non residents buying properties. iskander needs foreigners to invest (if not will be a big flop)
2013-08-28 11:30