SP Setia sees GST removal boosting buyers' sentiment

SP Setia president and CEO Datuk Khor Chap Jen:

SHAH ALAM: SP Setia Bhd expects the abolishment of the Goods and Services Tax (GST) to improve buyers' sentiment in the current property market down-cycle. 

Despite being optimistic, SP Setia president and CEO Datuk Khor Chap Jen however emphasised that it was still too early to determine what kind of impact it would have on the local property market. 

“It’s still too early to determine the impact as the government intends to introduce the Sales and Service Tax. With GST abolished, we do expect to see a pick-up in commercial properties,” he said after the company's AGM on Thursday.

Khor clarified that the company will not reduce the price of its commercial units.  “They will now just be tax-free,” he said. 

Residential units are exempted from GST.  

Making good on it’s election promise, the Pakatan Harapan Government announced on Wednesday that it is effectively abolishing GST. From June 1, all goods and services subject to GST will be zero-rated. 

Also, in its manifesto, Pakatan Harapan is imposing a time limit for developers to complete the construction of properties on land that they own. 

Khor said SP Setia was known to develop its land “as soon as possible.” 

Khor also reiterated SP Setia is on track to meet its RM5bil sales target for the financial year ending Dec 31, 2018, backed by a sustained momentum and strong sales achieved to date.

For the first quarter ended March 31, SP Setia secured sales of RM1.11bil, with local projects contributing RM635.6mil or 58% of total sales while international projects contributed RM469.1mil or 42%. The group also announced a net profit of RM61.49mil for the first quarter on the back of a revenue of RM655.5mil.

Its upcoming major launches in the second quarter onwards will be in the Klang Valley, with planned major launches in Setia Alam, Setia Ecohill 2, Setia Eco Park, Setia Eco Glades, Setia Alamsari and Alam Impian.

In the southern region, the planned major launches are in Taman Pelangi Indah, Setia Eco Gardens and Setia Tropika.

In the northern region, the group will launch the much anticipated Setia Fontaines, the new lifestyle development in the northern part of Seberang Prai.

On the international front, its Daintree Residence condominium will be making its debut at Toh Tuck Road, Singapore, where 327 units with a GDV of S$480mil (RM1.42bil) is slated to be launched in the third quarter of financial year 2018.