The government’s introduction of a fixed 5% real property gains tax (RPGT) effective Jan 1 next year is perplexing, to say the least.

If the surprise announcement by the prime minister when unveiling Budget 2010 last Friday was intended as a lenient and hence palatable variant of the RPGT before its waiver in April 2007, it could not be further from the truth.

LONDON: A prominent hotel and residential development project at 336 – 337 Strand, London, is up for sale. The partially-constructed project when completed will comprise a 173-key hotel finished to a five-star standard with 79 residential apartments with 92 underground car parking spaces, as envisioned by Forster + Partners.

Amanah Harta Tanah PNB 2 is disposing of three commercial buildings in the vicinity of Jalan Masjid India and Jalan Tuanku Abdul Rahman. For those eyeing this popular trading and shopping spot, the sale is an opportunity that does not come along often.

It is undeniable that many in the local property market felt the impact of the global financial tsunami. From 4Q2008, the outlook was dim as interest in properties waned. However, some properties have proven to be more resilient despite a drop in prices and transactions during the worst of the recession, such as bungalows in prime locations.

Developers in Johor Baru have reported improving sales since 2Q2009 in tandem with the overall economic outlook. “Low borrowing cost and payment schemes, such as zero- cost packages rolled out by developers, are helping to encourage more transactions,” says KGV-Lambert Smith Hampton Johor director Samuel Tan.There have not been many new launches as most developers are clearing unsold stock.

IPOH: The Real Property Gains Tax (RPGT), effective Jan 1 next year, is only 5% irrespective of the property disposal year, says Second Finance Minister Datuk Seri Ahmad Husni Hanadzlah.

KUALA LUMPUR: Construction-based Ho Hup Construction Company Bhd is planning  new launches worth RM1.6 billion next year including a 24-hectar mixed commercial and residential development known as Jalil Green City in Bukit Jalil in the first quarter of 2010.

PETALING JAYA:  Proposals announced in Budget 2010 seem to lack the needed impact for the property sector. Prime Minister Datuk Seri Najib Razak tabled the Budget in Parliament on Oct 23.  Property consultants in their initial reactions have little to say about the Budget.

Allan Soo, managing director at Regroup Associates Sdn Bhd, even described it as a “no-goodies” Budget.

KUALA LUMPUR: The Real Estate and Housing Developers’ Association Malaysia (Rehda) is concerned about the re-imposition of the Real Property Gains Tax at 5% for disposal of real property effective next year.

Its president, Datuk Ng Seing Liong said such an imposition is counter productive to the efforts to stimulate the property market, especially in the current global economy.

KUALA LUMPUR: The government’s effort in promoting green technology and waiver of stamp duty for buyers of Green Building Index (GBI), a green rating index, certified properties will further spur the demand for environmentally friendly projects in Malaysia, said Tan Sri Leong Hoy Kum, group managing director, Mah Sing Group Bhd in a press statement released Oct 23.