PETALING JAYA: MKH Bhd
managing director Tan Sri Eddy Chen does not expect a huge jump in property prices upon the implementation of the goods and services tax (GST) this April.
"To be frank, I don't think house prices will increase by 15% like what some developers claim because some developers have already priced in the tax even before it has been implemented," he said at the 17th Malaysia Strategic Outlook Conference 2015.
He opined that the transition would be smooth.
On the outlook of the sector, he said it might be a challenging year for developers but the demand for housing was still there.
He said land cost was holding well despite the softer outlook in the sector while construction costs had not come down much despite lower commodities prices.
Building material prices are also expected to be impacted by the implementation of GST.
Another challenge manpower due to a shortage in foreign labour, which was the main force of property development.
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