Budget 2014 will hit hard to local property industry

We think the approach is too hard even though we do not agree to sky rocketing property’s prices. The root is whether it is speculative or other reasons that caused the price hike. We feel that it is because cost is increasing and developers have transferred the cost to consumer. Also as it is a highly related fact to quantitative easing strategy by most central banks all over the world.

If the second objective is to collect more taxes to balance the budget. We feel simply a 2-3% stamp duty share by both buyers and sellers may have achieved the goal plus mildly reduce speculative activities.

If property market react heavily to the approach and this may impact all chains related to property industry and we believe is quite widely spread.