BINTULU: Assistant Minister of Housing Datuk Abdul Karim Rahman Hamzah yesterday said it was still too early to see the real impact of the Good and Services Tax (GST) on the price of houses in the state.
“It will be a slight change but at the end of the day it will be always market forces that will determine the price of houses.
“How much the unscrupulous developers try to capitalise, they want to jump into the bandwagon because all other things might seem to go up in price, so they start to increase the price but with no takers or no buyers they still need to settle the loan with the bank.
“This kind of thing we will have to see as it goes, after a while then you will be able to see whether there is really a big jump, small jump or even a reduction on the price of houses,” he said in a media conference after officiating at the seminar on Housing Development (Control and Licensing) Ordinance 2013, Housing Development (Control and Licensing) Regulations 2014 and Housing Development (Control and Licensing) (Amendments) Regulations 2015 at ParkCity Everly Hotel yesterday.
He said if many houses were developed at the same time, especially in Bintulu, the price of houses would definitely go down.
But with increase in demand every year, he added, prices tend to increase.
“Now we have to see whether the introduction of GST might have an effect on the price of houses but as it is I would say there might be a small increase in price, on how much percentage we would not be able to see but at the end of the day it is still determined by market forces, the consumer is the one who rules the day,” he elaborated.
On the seminar, he said it was jointly organised by the state Ministry of Housing and Sarawak Housing and Real Estate Developers’ Association (Sheda) to explain to those in the housing industry changes in the housing ordinance and regulations.
The seminar in Bintulu is the third in a series of awareness seminars that has been planned across Sarawak. The final seminar will be held in Sibu from April 6 to 7 at RH Hotel.
Over 600 participants across Sarawak from the property sector and related industries have registered for the series of seminars.
In addition, he said the awareness seminar aimed to enhance understanding and knowledge among housing developers and relevant stakeholders such as banks and legal firms on the enforcement and requirements of the housing development ordinance and regulations.
He added that a few areas needed to be tightened up based on the data obtained from studies on the housing development act and ordinance that had been practised in West Malaysia through dialogues or complaints from the public.
“This is also taking into account the changes on how buildings are constructed these days, the change in lifestyle and the concept of housing that has slightly changed,” said Karim.
The changes in regulations and ordinance, he explained, were to protect the end purchasers or buyers.
“So we tightened up the ordinance and regulations so that there would be less risk of projects being abandoned,” he added.
The press conference was also attended by Ministry of Housing permanent secretary Dr Wan Lizozman Wan Omar and Sheda president Joseph Wong Kee Liong.