Latest news with #RealEstateandHousingDevelopers'Association
Daily Express
13-06-2025
- Business
- Daily Express
Developers warn 6 pct SST could push up housing prices
Published on: Friday, June 13, 2025 Published on: Fri, Jun 13, 2025 Text Size: For illustrative purposes only. KUALA LUMPUR: A 6 per cent sales and service tax (SST) on construction services starting July 1 could push up housing prices and stall the property market, the Real Estate and Housing Developers' Association (Rehda) warned, The Edge Malaysia reported on Friday. Rehda said the tax would increase developers' financial burden, who already pay indirect taxes on labour and materials, potentially forcing project delays and price adjustments. Advertisement Its president Datuk Ho Hon Sang said the market could slow as developers review their plans, adding that the retrospective application of the tax may lead to cost overruns. Although residential homes and related public amenities are exempt, Rehda expressed concern over serviced apartments on commercial land and shop lot units in mixed-use developments now being taxed. Rehda urged the government to postpone the SST rollout and grant a grace period until 2026 to avoid impacting affordability, especially for low-income buyers under housing schemes. * Follow us on our official WhatsApp channel and Telegram for breaking news alerts and key updates! * Do you have access to the Daily Express e-paper and online exclusive news? Check out subscription plans available. Stay up-to-date by following Daily Express's Telegram channel. Daily Express Malaysia
New Straits Times
13-06-2025
- Business
- New Straits Times
REHDA: 6pct SST to push up home prices, slow market expected
KUALA LUMPUR: The Real Estate and Housing Developers' Association (REHDA) Malaysia has cautioned that the newly imposed 6 per cent Sales and Service Tax (SST) on construction services will increase operational costs for developers and ultimately drive up home prices. While acknowledging the Ministry of Finance's recent announcement on the revised SST structure aimed at boosting government revenue, REHDA expressed concern over the unintended consequences this tax could have on the property sector. "We have yet to determine the exact impact, but we expect the move will lead to a slowdown in the market as developers make adjustments to their plans," said president of the association, Datuk Ir Ho Hon Sang. He noted that the Association had previously engaged in consultations with the government to seek clarification and to highlight the tax's possible repercussions on the industry. "The industry is already bearing indirect taxes on construction-related items such as building materials and labour. The addition of the SST will only add to our burden. To maintain fairness, we sincerely hope that the SST will not be applied retrospectively. "Any price hike adjusted to contracts signed prior to the effective date could result in cost overruns which left developers with no choice but to absorb the additional cost," he said. While the exemption for residential buildings and public housing-related amenities offers partial relief, REHDA remains concerned about developments built on commercial land, particularly serviced apartments in mixed-use projects. "In today's urban landscape, especially in city centres, where residential units are often part of mixed developments due to land scarcity, subjecting these units to SST will inevitably lead to increased housing prices, ultimately impacting homebuyers who will have to bear the brunt," Ho said. Ho warned that low-income buyers, including those who purchase affordable homes under programs like Rumah Madani, Rumah Selangorku, and Rumah Mesra Rakyat, will also be adversely affected if their homes are located on commercial land. Additionally, several local authorities require commercial components such as shop lots within strata residential schemes. These units, along with internal infrastructure built within the development, will also be subjected to the SST, further inflating costs, he said in a statement. REHDA is appealing to the government to delay the implementation, currently scheduled in about two weeks, and proposes a grace period until 2026. "We respectfully request the government to consider postponing the implementation date, currently set for approximately two weeks from now. Many of our SME members have yet to register with the Inland Revenue Board and a grace period until 2026 would provide sufficient time for them to make the necessary preparations."
New Straits Times
13-06-2025
- Business
- New Straits Times
REHDA warns 6pct SST will drive up home prices
KUALA LUMPUR: The Real Estate and Housing Developers' Association (REHDA) Malaysia has cautioned that the newly imposed 6 per cent Sales and Service Tax (SST) on construction services will increase operational costs for developers and ultimately drive up home prices. While acknowledging the Ministry of Finance's recent announcement on the revised SST structure aimed at boosting government revenue, REHDA expressed concern over the unintended consequences this tax could have on the property sector. "We have yet to determine the exact impact, but we expect the move will lead to a slowdown in the market as developers make adjustments to their plans," said president of the association, Datuk Ir Ho Hon Sang. He noted that the Association had previously engaged in consultations with the government to seek clarification and to highlight the tax's possible repercussions on the industry. "The industry is already bearing indirect taxes on construction-related items such as building materials and labour. The addition of the SST will only add to our burden. To maintain fairness, we sincerely hope that the SST will not be applied retrospectively. "Any price hike adjusted to contracts signed prior to the effective date could result in cost overruns which left developers with no choice but to absorb the additional cost," he said. While the exemption for residential buildings and public housing-related amenities offers partial relief, REHDA remains concerned about developments built on commercial land, particularly serviced apartments in mixed-use projects. "In today's urban landscape, especially in city centres, where residential units are often part of mixed developments due to land scarcity, subjecting these units to SST will inevitably lead to increased housing prices, ultimately impacting homebuyers who will have to bear the brunt," Ho said. Ho warned that low-income buyers, including those who purchase affordable homes under programs like Rumah Madani, Rumah Selangorku, and Rumah Mesra Rakyat, will also be adversely affected if their homes are located on commercial land. Additionally, several local authorities require commercial components such as shop lots within strata residential schemes. These units, along with internal infrastructure built within the development, will also be subjected to the SST, further inflating costs, he said in a statement. REHDA is appealing to the government to delay the implementation, currently scheduled in about two weeks, and proposes a grace period until 2026. "We respectfully request the government to consider postponing the implementation date, currently set for approximately two weeks from now. Many of our SME members have yet to register with the Inland Revenue Board and a grace period until 2026 would provide sufficient time for them to make the necessary preparations."
Malaysian Reserve
11-06-2025
- Business
- Malaysian Reserve
DBKL gazettes KL Local Plan 2040 to improve transparency, urban renewal
by Nurul Najmin Abu Bakar THE Kuala Lumpur City Hall (DBKL) has officially gazetted the KL Local Plan 2040, effective on June 11, to enhance transparency and guide sustainable urban development. Mayor Datuk Seri Maimunah Mohd Sharif said the plan reflects a collective social contract to shape the city's future through balanced growth, inclusivity and sustainability. 'The Local Plan is not just a planning document, it is your plan, my plan and our plan,' she said during her keynote address at the Real Estate and Housing Developers' Association (REHDA) Institute forum titled 'Resilient Cities, Sustainable Futures: Transforming Urban Landscapes through Sustainable Renewal' on June 10. She said the plan incorporated 4,000 public feedback submissions out of a total of 28,000 received. Maimunah credited Prime Minister (PM) Datuk Seri Anwar Ibrahim for urging that the plan be gazetted earlier, describing it as a rare intervention by the federal leadership in local urban planning. Anwar is scheduled to officially launch the plan on June 24. The plan identifies 139 sites across KL targeted for urban renewal. 'Urban renewal is like a medical check-up for a city every 15 to 30 years. It is not just about replacing old buildings, but about improving livability and infrastructure,' she said. She acknowledged that implementation will face challenges, particularly regarding strata management and the city's current maintenance practices. 'Our maintenance culture is still lacking, but we need scheduled and consistent upkeep of city assets,' she added. DBKL is also planning to make the Local Plan more accessible to the public, drawing inspiration from Singapore's Urban Redevelopment Authority (URA) model. Maimunah stressed the critical role of cities in addressing both economic and climate challenges. 'Cities occupy only 2% of the Earth's surface, but generate 70% of waste and greenhouse gas (GHG) emissions, and contribute 80% of global GDP,' she said. She said urbanisation should no longer be seen solely as a challenge, but also as an opportunity to drive innovation, economic growth and resilience. 'Our job is not only to make KL functional and efficient, but also to build a city that people are proud to call home,' she added.
The Sun
09-05-2025
- Business
- The Sun
REHDA sees positive impact on housing affordability after SPAN revises sewerage charges
KUALA LUMPUR: The Real Estate and Housing Developers' Association (Rehda) Malaysia said the revision of the Sewerage Capital Contribution (SCC) rates by the National Water Services Commission (Span) is expected to benefit the property development industry. In a statement today, Rehda said under the revised structure, which took effect on March 1, 2025, SCC charges are now categorised into five pricing tiers, ranging from RM1,000 for projects with a unit price of RM80,000 and below to one per cent of the selling price for units priced at RM500,000 and above. It said the association believes that such a step is crucial in maintaining a healthy property landscape so that affordability will no longer be an issue for homebuyers. Rehda president Datuk Ho Hon Sang described the revision as a 'positive step for all industry stakeholders,' highlighting the government's responsiveness to the concerns of developers and the broader property market. He emphasised that the SCC downward revision is one of the many issues that Rehda has consistently advocated for in its numerous engagements with the government. 'We hope that the reduction will enable developers to ultimately pass on the savings to homebuyers. 'We also urge both the federal and state-level government agencies to review other contribution charges affecting the industry, ensuring that they remain fair and reflective of current market conditions,' he added.
