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00:10 How can we tackle the glut in unsold properties in the market?
00:13 Kazana Research Institute Research Director, Suraya Ismail,
00:16 says a novel way to overcome this problem is to introduce a vacancy tax.
00:21 Essentially, this means imposing a penalty on the owner of any property
00:24 that remains unoccupied or unsold beyond a specified period of time.
00:29 The tax payable is calculated based on a percentage of the gross selling price.
00:34 This, Suraya says, can discourage speculative activities by individuals
00:38 who hold on to units with the primary intention of making quick profits.
00:42 The tax, she says, can also prevent an oversupply of certain types of properties
00:46 by forcing developers to plan and develop housing projects that meet local demand.
00:52 Vancouver and British Columbia in Canada and Melbourne, Australia
00:55 are some of the places that have introduced this tax
00:57 in the hope that it will create an affordable housing market.
01:01 Natasha Bust, FMT News.
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