Cooling measures tipped to nudge Malaysian investors towards commercial property | 30 October 2013
Malaysian investors have been tipped to shift their focus from residential to commercial property, following the introduction of cooling measures to stop house prices from skyrocketing.
Sarkunan Subramaniam, managing director of Knight Frank Malaysia, has suggested that commercial property will now offer much better returns than residential property as a result of the new laws announced the in country’s 2014 budget last week.
The Malaysian government announced that taxes for properties sold within five years of acquisition would double. The minimum price of property purchases by foreigners will also double to 1 million Ringgit, amongst other measures.
Subramaniam suggested that yields on residential properties may be limited to four per cent as a result, with commercial properties potentially offering at least six per cent.
However, the government has also set a start date for a new tax on commercial properties. The long-delayed six per cent Goods and Services Tax (GST) will begin in April 2015.
Speaking to themalaymailonline.com, Subramaniam suggested that there will be a rush to invest in Malaysia’s commercial property before this date.
He said: “There will be a shift. There is already a shift. Investors who are already familiar with residential properties will look into commercial properties for better returns. Until April 2015, this will be the case. I do believe there will be a trend to avoid GST.”
According to theedgemalaysia.com, Subramaniam said he was unsure that the cooling measures would allow residential property prices to drop significantly.
The views expressed in this post are those of the author and are not necessarily those of Qube Global Software. All facts are verified where possible directly by the author.
Qube Global Software wins Industry Supplier of the Year Award for 2nd consecutive year | 2 December 2016
Qube Global Software won Industry Supplier of the Year at the News on the Block Property Management Awards for the second year running.
We have partnered with the Facilities Show to host an exclusive webinar on the relationship between facility, property and estate managers and their service providers and contractors.
We are delighted to announce that Qube Global Software has been shortlisted in the Industry Supplier of the Year category at the Property Management Awards 2016, hosted by News on the Block.