Developers warn 6 pct SST could push up housing prices
Published on: Fri, Jun 13, 2025 Text Size: For illustrative purposes only. KUALA LUMPUR: A 6 per cent sales and service tax (SST) on construction services starting July 1 could push up housing prices and stall the property market, the Real Estate and Housing Developers' Association (Rehda) warned, The Edge Malaysia reported on Friday. Rehda said the tax would increase developers' financial burden, who already pay indirect taxes on labour and materials, potentially forcing project delays and price adjustments.
Advertisement Its president Datuk Ho Hon Sang said the market could slow as developers review their plans, adding that the retrospective application of the tax may lead to cost overruns. Although residential homes and related public amenities are exempt, Rehda expressed concern over serviced apartments on commercial land and shop lot units in mixed-use developments now being taxed. Rehda urged the government to postpone the SST rollout and grant a grace period until 2026 to avoid impacting affordability, especially for low-income buyers under housing schemes. * Follow us on our official WhatsApp channel and Telegram for breaking news alerts and key updates! * Do you have access to the Daily Express e-paper and online exclusive news? Check out subscription plans available.
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