Up to 10% cuts in new Penang home prices in the offing, says Rehda

Penang Rehda chairman Toh Chin Leong urges members to lower their property prices.

GEORGE TOWN: House buyers in Penang can look forward to price reductions of 6% to 10% after a developer interest group decided to pass on savings from the exemption of sales and services tax (SST) on some building materials.

Real Estate and Housing Developers’ Association (Rehda) Penang branch chairman Toh Chin Leong said the 6% cut on prices are for properties within the affordable homes segment of below RM300,000.

He said prices of homes above RM300,000 can be slashed by 10%.

The savings will take effect on properties purchased after Sept 1, the day the SST kicked in.

Toh said the savings is made possible through the SST exemption on raw materials such as cement and rocks.

He said these items were previously charged the goods and services tax (GST) and developers had to pass the tax on to property buyers.

“We welcome the SST. It is very good, the government now has removed (taxes on) several raw materials, concrete and cement. Some finished materials are still taxed but at a reduced rate.

“We can afford to sell at lower prices now due to the reduced costs. We advise our members to pass the savings to the buyers. We should not be taking advantage,” Toh said at the Setia Convention Centre here today.

At the same press conference, Finance Minister Lim Guan Eng lauded the move by Penang Rehda and said it was an example of good corporate social responsibility.

He hoped other property developers in the country would follow Penang Rehda’s move to cut prices.