The increase in the Real Property Gains Tax (RPGT) in the 2014 Budget -- to 30 per cent for properties disposed of within three years, and to 20 per cent and 15 per cent for properties disposed
of within the fourth and fifth years respectively -- can help stabilise the property market in Malaysia, says an industry body.

James Wong, publicity chairman of the Association of Valuers, Property Managers, Estate Agents and Property Consultants in the Private Sector Malaysia (PEPS), said before the new rate was announced, Malaysia's property market was in an unhealthy situation.

"The housing prices jumped 20-30 per cent in 2012. RPGT is a good method to control the price rise and unhealthy conditions, which bring a bad effect to the property sector," he told a press conference at the PEPS Post 2014 Budget Commentary today.

Wong said PEPS was also pleased with the establishment of the National Housing Council, which will develop strategies and action plans in a holistic manner, coordinate legal aspects and property price mechanism and ensure provision of homes in a more efficient and expeditious manner.

"In our wish list for the 2014 Budget, we proposed to the government to set up a National Housing Corporation, working in conjunction with the 1Malaysia People's Housing Programme (PR1MA), to plan, coordinate and implement affordable
housing in each state in Malaysia.

"We are very glad to hear Prime Minister Datuk Seri Najib Razak
announcing the establishment of the council, to work on the same purposes," he said.-- Bernama