KUALA LUMPUR (Sept 28): It is possible for property developers to reduce prices on residential homes if they focus on cutting their costs by 3% to 5%, said the Construction Industry Development Board. 

CIDB chief executive Datuk Ahmad Asri Abdul Hamid said while prices will be driven by the market, it would be even more of a burden to property developers, should the government reconsider the exemption of the Sales and Services Tax (SST) on construction materials. 

“If the SST exemption is retracted then, that would be a loss to everyone. We do hope there would be a reduction in costs but we acknowledge it would be determined by the developer,” Ahmad Asri said at a media conference earlier. 

He was speaking in reference to the government’s suggestion it would reconsider the exemption of SST on construction materials, if house materials are not reduced, as informed by Finance Minister Lim Guan Eng earlier this week.

He recommended for developers to pass on the expected saving from the exemption, to home buyers in the form of reduced home prices.