Glomac urges stamp duty exemption for home upgraders as margins narrow
Glomac Bhd has called on the Malaysian government to extend stamp duty exemptions to homeowners selling their existing property to buy a larger home. The developer also reported that industry profit margins have narrowed to the mid-teens from around 30%, as construction costs rise.
KUALA LUMPUR (Oct 22) – Glomac Bhd (KL:GLOMAC) has urged the government to extend stamp duty exemptions to homeowners who sell their existing property to purchase a larger home. Managing director and chief executive officer Datuk Seri FD Iskandar gave the example of a newly married couple buying an apartment for a start, before seeking a landed property as the family grew. "But that's your only property. You are selling your apartment to buy a landed property," he said after the group's annual general meeting on Thursday. "It should be open to everybody as long as they've got one house," he added.
Separately, Iskandar said developers were feeling the squeeze on their profit margins as construction costs rise and there is little room to pass them on to buyers. He said industry profit margins had narrowed to the mid-teens from around 30% previously. Construction costs for landed properties had risen by 5% to 9% and 15% for high-rise developments. Earthworks and infrastructure costs had also increased by about 30%, largely due to higher diesel prices.
"Most developers now are actually taking a hit on their margins. As much as you can absorb, you absorb. But if you can't, you pass the costs to the buyers," Iskandar said. "But buyers also, when you go above a certain threshold, they can't afford to buy." He said developers were reviewing project designs and seeking higher development densities to offset rising costs.
Despite the cost pressures, demand for landed homes remained resilient, while commercial properties had seen a recovery in buyer interest. "Three years ago, nobody wanted to buy. Now, everybody wants to buy," Iskandar said, adding that all non-Bumiputera units in a commercial development launched last month had been taken up.
Glomac is maintaining its RM371 million launch pipeline for the financial year ending April 30, 2027 (FY2027), but could accelerate launches if market conditions improve. "If the market takes a turn for the better, we are ready to boost up some launches," he said. The group has launched RM163 million worth of projects so far, with another RM208 million planned for the third quarter.
Iskandar said property bookings in the first five months of FY2027 had improved year-on-year, although the group did not disclose a sales target. Glomac also has about RM130 million worth of previously launched but unsold properties, bringing its available inventory and planned launches to approximately RM500 million. For FY2026, Glomac recorded revenue of RM226.2 million and net profit of RM20.2 million. It ended the year with RM546 million in unbilled sales. Shareholders also approved a final dividend of 1.38 sen per share for FY2026, payable on Dec 16.
