The still subdued consumer sentiment against a backdrop of rising cost of living and elevated household debts is holding consumers back from committing themselves to the purchase of big ticket items like a house.
KUALA LUMPUR: Finance Minister Lim Guan Eng would like to see a drop in residential property prices with the exemption of the Sale & Service Tax (SST) on construction services.
"We want all developers to reduce prices. This applies to all states," Lim said.
He was speaking at the Annual Property Developers Conference organised by Rehda Institute.
He said while he is aware that there is a need for people's incomes to rise, this will not be fast enough because an income rise will have to be accompanied by productivity.
Residential property prices, he said, are too high for Malaysian levels of income today.
"So we cut SST on construction services. So let us (the government and private developers) meet half way.
"If prices do not fall, we will reconsider this exemption," Lim said.
He said he would like to see some positive outcome of the exemption before Budget 2019 on Nov 2.
Rehda (Real Estate Housing Developers Association) president Datuk Soam Heng Choon, at the same press conference with Lim, called on developers to pass savings back to house buyers.
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