REHDA: Property sales in H12016 Sees 39% Decrease


REHDA: Property sales in H12016 Sees 39% Decrease

PETALING JAYA, September 14 — Property sales in Malaysia slipped to 39% in first half of 2016 (H1 2016) when compared to the robust 52 per cent posted a year ago, due to slower demand and end-financing related issues.

Real Estate and Housing Developers’ Association (REHDA) President, Datuk Seri FD Iskandar, said first-time buyers declined by 13% in 1H 2016.

He said half the residential units launched were priced below RM500,000 and all states retained prices, except Melaka.

“The main issue the purchasers are facing is when they get financing up to 75 to 80%. Somebody has to give the 10 to 15%,” he said after a media briefing on REHDA’s Property Industry Survey here today.

Iskandar said the proposed financing scheme by property developers should only be given to first-time home-buyers and only for affordable houses priced at RM500,000 and below.

Iskandar said the end-financing by home-builders were ultimately to help first-time buyers bridge the gap in the funds needed for the initial payment.

However, only developers with strong balance sheets could give the facility to home-buyers and they were not many of them, he said.

He also said that REHDA rejected the proposal to provide 100% financing to house-buyers, instead was willing to bridge the gap between bank loans and deposits.

“No developer in Malaysia has the capacity to provide 100% loan to house-buyers, but the proposal would at least assist with the down payment.

“What we do is only bridging. No developer, no matter how big they are, can afford to give out a full loan. We do not have the balance sheet to do so.

“It’s either the banks relax, give a higher form of financing or to those developers who can afford it to come in and provide the bridger,” he added.

Sign up and stay updated
Get the latest property news, home solution tips, interior design ideas and property guides.
By subscribing, you consent to receive direct marketing from Malaysia Sdn Bhd (iProperty), its group of companies and partners. You also accept iProperty’s Terms of Use and Privacy Policy including its collection, use, disclosure, processing, storage and handling of your personal information.