How increase in capital gains tax might affect real estate

Land and buildings are the facets of the real estate sector that will be largely affected. [iStockphoto]

The impact of the hike in capital gains tax (CGT) on the real estate sector remains a wait-and-see situation even as government maintains that it doesn't foresee an increase in property prices.

The capital gains tax will be charged at 15 per cent of the net gain on the transfer of property starting this month, down from five per cent since the reintroduction of this levy in 2015.