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Malaysia: Please, no extra real estate tax in 2019 Budget: EcoFirst
KUALA LUMPUR: EcoFirst Consolidated Bhd is hopeful that the government will not introduce any additional real estate taxes in the upcoming 2019 Budget.
Group chief executive officer Datuk Tiong Kwing Hee said the additional tax could weigh heavily on the current sluggish property market.
“We believe continued focus on housing affordability is still needed and hopes the government will allow provisions that will help Malaysians buy homes and secure housing loans,” he said in a statement.
These measures could potentially boost the real estate sector, Tiong added.
The company saw continued profitability in its first quarter, posting a net profit of RM4.7 million despite a softer property market.
For the quarter ended August 31, 2018, it saw its revenue maintain at RM44.7 million.
In the previous corresponding quarter, it saw a revenue of RM44.8 million and restated net profit of RM5.7 million following the adoption of MFRS framework with effect from June 1, 2018.
Tiong said its flagship development, Liberty@Ampang Ukay Phase 1, was 95 per cent sold, contributing to the results.
“This demonstrates EcoFirst’s ability to tap into underserved segments of the market, producing the right products to meet customers’ demand,” he added.
Tiong said Liberty is progressing well according to schedule and on track to meet its full completion in November 2019.
“With increased progress billings in tandem with completed stages of Liberty, our focus is to ensure fast turnaround on Liberty, which keeps our cash flow healthy,” he added.
Ecofirst is now working on Phase 2 is being planned as a lower density development with three blocks proposed, and comprising offer larger-sized units that would suit young growing families.
It is expected to be launched in the third quarter of next year.
Tiong expects Phase 2, which will be priced to offer good value to the target market, to build on the success of Liberty.
As the last large freehold land on the borders of Ulu Kelang, Tiong said EcoFirst’s 87-acre Ampang Ukay project will be the main driver of growth over the medium- to long-term, with over RM5 billion in estimated gross development value.
In addition, EcoFirst is also targeting opportunities to develop small pockets of land in prime, affluent neighbourhoods for quick turnaround and steady cashflow, he added.
Source: https://www.nst.com.my/business/2018/10/425179/please-no-extra-real-estate-tax-2019-budget-ecofirst