For developer projects, acc to my valuer friends, banks only need valuers confirmation and support to the project valuation on prices, location, demand and marketability factor as well as banks will analyze the developer's financial and profile as well. It is much different compare to sub-sales. It just a piece or two papers instead of Proper Full Set of Valuation Report for Subsales ( which recorded by Boards of Valuers / Appraisal)
You had asked a very good question but I not sure whether I could guess it or answer it correctly.
If one would like to build a something iconic and wanted to sell it at RM 5000 psf, can they cohoot with valuers to justify it?
The root thing could be who is the developer and how the developer managed to obtain the such iconic and superbly built Building Plan Approval, Pricing Approval, Developer License, Masterplan Approval and etc from the Government?
If the developer is not the top ranks, I doubt even the valuers pakat to offer high valuation and highly recommended, they won't get the approval from the Governement to run the project as well as no banks would financing such bridging and end financing.
If the developer are the those top ranks, shown financial reports which is superbly strong and able to deliver a great masterplan, concept and obtained the government's approval for the project, banks will take this initiative to offer the bridging loan and end financing although valuers may provided info that, the indicative project pricing is very high but a iconic project weighs in by strong interest and pool of affluent and VVIPs buyers.
Ex. 4 Seasons, KLCC
The copyright name of the project is worth at least RM 1,000 psf extra.
The developer's profile
The buyers' profile
The risk of the project and buyers
The banks are normally "more relaxed" for end financing for new launch as there is competition among them to get on the panel, though still subject to assessment on the project and its pricing not over priced. Unless the developer concerned is blacklisted by that bank.
As this is bulk business, meaning can get many number of loan business during launch period, the loss of any loan turning non performing over the total loan exposure for the project is less. That's why bank also set quota for each project.
Don't be surprised that bank may also give rebate to the developer for the interest income that it is earning...
Sep 25 2012, 12:31 PM
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I think you should talk to the developer and find out how much is the furnishing costs. 18K to get the entire unit furnished seems to be cheap.
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