Expo briefing: Eco World Development Group Bhd divisional GM Datuk Hoe Mee Ling (left) briefing Amran (third from right) and Chong on the expo at Johor Baru City Square shopping complex.

JOHOR BARU: Developers are hoping that the Government will reconsider reducing the Goods and Service Tax (GST) on properties, especially houses, in order to boost home ownership in the country.

Real Estate and Housing Developers Association (Rehda) Johor branch chairman Datuk Steve Chong Yoon On said the 6% GST on properties was deemed too high for buyers.

He claimed the new tax regime introduced in April 2014 was one of the main reasons which contributed to the slowdown in the property market in Malaysia in the recent years.

“It will be a good move and we (developers) are grateful if our government is willing to take the bold step,’’ Chong said in a press conference here yesterday.

He said a reduction in GST for residential properties would not only benefit the property market but would also directly and indirectly benefit the country’s economic growth.

“It will definitely attract buyers especially first time house owners to enter the market,’’ said Chong.

He said developers had not much choice but to pass the cost to buyers now, which pushes up house prices as building materials were also subject to GST.

Chong said it took developers between three and five years in doing development planning to delivering the end products to buyers, including getting approval from relevant authorities at the Federal and state level.

He said on top of it, developers also have to build low and medium cost houses and Bumiputera units as required by the state government and cross-subsidise these houses from the non-low and medium cost segments.