Imposing higher real property gains tax (RPGT) and stamp duty will not curb the suation of increasing property, said Real Estate and Housing Developers' Association (REHDA). Its President, Datuk Seri Michael KC Yam, said this was because speculation only occurred in certain hotspots and not in the affordable segment of the market.
He said because of some of these hotspots, such as Bangsar and Mont Kiara, tightening measures were imposed, which could affect 95% of the market.
Yam said there was a need to examine carefully the various categories of buyers and prescribed a more focus action against the speculators.
"There are better mechanisms to curb speculation than just applying RPGT universally throughout the country," Yam told a media briefing here today.
Increasing RPGT and stamp duty, he said, could also send a message to investors that there were policy uncertanty in the country.
He said fundamentally, the problem with the property market in the country was not enough supply.
"The best thing is almost a free market. Make sure there is enough supply in the market and the prices will come down," he said.
Yam said as an emerging country with young population and urban migration, there would be a lot of demand for properties but we don't have enough supply.
"Look at South Korea, there's an over-supply so the property prices have come down. And, in Europe, there were lots of ageing population so the prices were rather benign," he said.