THE property landscape is expected to remain challenging next year, amid rising costs of doing business, tighter monetary policy and the impact of of a new tax system, said the Real Estate and Housing Developers Association (Rehda).

Its president Datuk Seri FD Iskandar Mansor said these may result in fewer new property project launches by developers and rising property prices.

"Three to five years ago, the cost of doing business was just at three per cent.

"Today, they vary between three and 18 per cent, depending on the states, due to higher premium charges by certain state governments.

"The federal government has put in place various measures to ensure low costs of doing business for developers.

"We are hoping that state governments such as Selangor would look into this as well for the benefit of the public," he said.

Speaking to reporters at a press conference on "Rehda Cares:
Contribution to Malaysian Flood Victims", here, yesterday, FD Iskandar said property demand may slow down between six and nine months after the implementation of the Goods and Services Tax (GST).

He said this was the usual scenario in other countries, which have implemented the integrated tax system, mainly due to consumers trying to adjust to the new situation.

Meanwhile, FD Iskandar said Rehda is hoping to get a positive feedback from the government on exempting residential properties from the GST.

He said a proposal on this matter has been submitted to the government and that Rehda is awaiting for response.

"We are seeking a waiver, especially for affordable homes below RM500,000 and first-time buyers," he said.

In light of the flood situation in the east coast, Rehda has donated RM150,000 to the flood victims while its branches in Kelantan and Terengganu have distributed food and drinking water to relief centres.