KUCHING: Prices of residential properties may inflate by between one to three per cent following the implementation of the Goods and Services Tax (GST) by April 1 next year, but this depends on other market factors as well.
Ernst & Young (EY) executive director Koh Siok Keat reiterated his prediction of a price rise between one to three per cent after factoring in an increase in costs of construction and development caused by GST.
However, he highlighted that many other factors come to play as well when it comes to property prices.
“This (property prices) is hard to predict as we have to take into account things such as demand and supply, valuations, and many other aspects,” he told The Borneo Post after chairing Sarawak Timber Association’s GST Seminar on Tuesday.
“The Royal Customs Department expect a one per cent increase, while the Real Estate and Housing Developers Association expect it to go up to three per cent. We think prices may fluctuate in between.”
Koh said it would be a wise move for property and construction players to stock up on supplies such as cement, steel bar, sand and the like to save up to six per cent in costs prior to April 1.
“In bulk, this could amount to major one-off savings for companies. All these items are without sales tax, so it would be wise to stock up before GST,” he advised.