KUALA LUMPUR: The government is studying the possibility of imposing a vacancy tax on unsold luxury condominium units in the Klang Valley, said Deputy Federal Territories Minister Datuk Seri Edmund Santhara Kumar (pix).
He said based on data there were 2,260 unsold condominium units within the Klang Valley, of which 498 comprised luxury units worth RM1 million and above as of the second quarter of 2018.
“At present, the number of unsold units is less than 4%, therefore there is no need for such a tax for now but the proposal would be studied further,” Edmund said in reply to a question by Datuk Hasanuddin Mohd Yunus (PH-Hulu Langat).
Hasanuddin had asked whether the government will be imposing similar tax practices as seen in several other major cities around the world such as Vancouver and Melbourne to deal with unsold condominium units.
A vacancy tax is a tax where any property that is left vacant and unsold for a certain amount of time is charged a penalty based on a percentage of the gross selling price.
Edmund said factors that contributed to the accumulation of unsold luxury condo units were buyers’ inability to obtain financing loans and the mismatch in supply and demand.
He said the issue needs be addressed in a holistic manner by all those involved including the Finance Ministry and Bank Negara Malaysia
He said Kuala Lumpur City Hall will take into account the demands and necessities in issuing planning approvals for each development project in the city.
