The Property Sector :
Another possible measure is the Real Property Gains Tax (RPGT) which was a more meaningful way to curb speculation in the local property market. The regulatory measures, if any, are expected to be unveiled when the government tables Budget 2012 in Parliament on Oct 7 2011.
|picture courtesy of klmanagement.com|
The higher end of the Malaysian property market will likely be hit most severely should Bank Negara Malaysia (BNM) initiate measures for banks to compute household debt based on a borrower’s net income rather than gross income.
If supply is to match demand, it implies that prices will have to correct by a similar or smaller percentage for the supply to be absorbed or developers will start to slow down their launches to limit the supply in the market.
BNM’s MPC Meeting : BNM is expected to maintain OPR at the current level of 3% up to mid 2012 amid uncertainties in the global economic outlook – no increase in BLR!
KCK, Kenanga Investment Bank.