KUALA LUMPUR, Oct 12 -- Infrastructure improvements in the form of the Serendah-Port Klang Rail Bypass and road upgrades towards Port Klang, as announced in the 2020 Budget, are timely measures to improve connectivity and resolve traffic congestion in that area, says property consultancy firm CBRE I WTW.

In a statement, managing director Foo Gee Jen said the development of Carey Island will help boost the capacity of Port Klang, where existing operators like Westport have been running at almost full capacity.

“These are parallel initiatives that complement the vision of Port Klang becoming a regional maritime centre and cargo logistics hub,” he said.

Further to the north, he said the company views the ongoing creation of a logistics hub in Bukit Kayu Hitam as having an amplified economic spillover to the lesser developed northern corridor.

“The special investment incentive package by InvestKL to attract Fortune 500 companies and unicorn firms is very much welcomed as it may help to ease the office oversupply in the Klang Valley especially,” he added.

Meanwhile, he commended the rent–to-own (RTO) scheme for first-time homebuyers of property priced below RM500,000, but noted that the government needs to put in place a comprehensive Tenancy Act to protect the interests of both landlords and tenants.

“Considering that high-rise properties priced above RM600,000 constitute more than 60 per cent of overhang in the Klang Valley, the reduction of the foreign purchase threshold to RM600,000 opens up a significant portion of the market to foreigners -- this is a double-edged sword.

“The government needs to be cautious to prevent exposing the domestic property market and genuine local homebuyers to unnecessary competition and speculation.

“The government could consider attaching some conditions such as the lower threshold only applies to existing stock and excludes new launches, in order to have a more targeted effect of easing the overhang,” he said.

The revised real property gains tax (RPGT) essentially observes no changes to the tax structure, but rather, the reset of the assessment year brings about tax relief.

This, he said, could be counter-productive as the revenue collected may turn out to be nominal.

“We hold the view that properties disposed of after five years should not be subject to RPGT as this would hurt the genuine homebuyers.

“In addition, zerorised RPGT after five years will stimulate the secondary market and encourages reinvestment into the local property market especially for upgraders,” he said.

-- BERNAMA