Taxes set to reduce transactions

The pending property tax could lead to declining residential property transactions in the Kingdom as residents fear rising house prices. Although the property sector is currently stable after the country’s recovery from the financial crisis, it is expected to stall once the prakas is implemented, VMC Property Company General Manager Dit Channa said. The taxation will also put pressure on multiple-property owners, especially residential landlords, who may reconsider purchasing further properties, potentially reducing transactions, she said.