PAM: GST won’t have much impact on property market x

KUALA LUMPUR: The goods and services tax (GST) will not have much impact on the property market, said Malaysian Institute of Architects (PAM) president Chan Seong Aun.

He said property dealers should erase this perception because the development of land or buildings used for residential or for general purposes was exempted from GST.

“Give them (property dealers) at least three months to cool down a little to find that the impact of GST is non-existent and only commercial buildings are subjected to 6% GST,” he said he said on the sidelines of a housing forum here yesterday.

On whether the GST would impact the property purchasing power of Gen Y, Chan recommended a salary increment by employers to maintain or raise the standards of living of the generation.

He said employers in other countries which had imposed GST tend to increase the salaries of their employees.

This, he said, was to increase the standards of living as well. “However, the salary increment has to be ahead of the housing price increase.” — Bernama