Business

Decline in property sales in half year

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Syndicated News
Written by Syndicated News

KELANA JAYA — September 14, 2016: Property sales in the country slipped to 39 per cent in the first half of the year compared to the robust 52 per cent a year ago due to slower demand and end-financing related issues.

First-time buyers also declined by 13 per cent in the same period.

Half the residential units launched were priced below RM500,000, with all states retaining prices except Malacca.

“The main issue purchasers are facing is when they get financing up to 75 or 80 per cent. Somebody has to give the remaining 10 to 15 per cent,” Real Estate and Housing Developers’ Association (Rehda) president Datuk Seri FD Iskandar said at a briefing on Rehda’s property industry survey today.

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

The  end-financing by developers is ultimately to help first-time buyers bridge the gap in the funding for the initial payment.

However, only developers with strong balance sheets could give the facility to buyers and there are not many of them, said Iskandar.

He also said that the association rejected the proposal to provide 100 per cent financing to buyers. Instead, it is willing to bridge the gap between bank loans and deposits.

“No developer in Malaysia has the capacity to provide 100 per cent loans to buyers but the proposal would at least help with the downpayment.

“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.” — Bernama

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