End financing main factor dampening property market, says REHDA

End financing main factor dampening property market, says REHDA

KUALA LUMPUR, March 9 — End financing and loan rejection are the main factors dampening the local property industry, said Real Estate and Housing Developers Association Malaysia (REHDA) President Datuk Seri FD Iskandar.

FD Iskandar said he hoped the relevant authorities, especially Bank Negara, would be more flexible in approving loans for first-time and affordable house buyers.

“In the second half of 2015 (2H15), the loan rejection rate increased to 68% as compared to 52% in the first half of 2015. “Despite Malaysia’s household debt being the highest in Southeast Asia, only 30% out of the 86.6% household debt to Gross Domestic Production (GDP) is home loans,” he told reporters after presenting REHDA’s 2H2015 and Market Outlook 2016 here today.

On the property industry outlook for 2016, FD Iskandar hoped that industry players would be optimistic in the second half of 2016 (2H16).

“It depends very much on the take-up rate for properties from January to June 2016.

“In the ’90s, people were queueing up for houses whenever there was a launch while a few years back, properties would be sold out within a week of their launch.

“The phenomenon is no longer there as things are not the same as before,” he said.

Meanwhile, REHDA Deputy President Datuk Soam Heng Choon said consumer sentiment would be better in 2H16 as oil prices and GDP growth are likely to rebound.

“From a survey we conducted, 60% of REHDA members are pessimistic on the 1H16 outlook as compared to 40% on the 2H16 outlook.

“When you have a very bad feeling on the performance of 1H16, then 2H16 should be better,” Soam said.

— BERNAMA

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