http://www.themalaymailonline.com/money/ar...nk-funds-dry-up


KUALA LUMPUR, Dec 14 — Malaysians are finding it increasingly harder to get housing loans as banks have less money available to lend out, financial expert Gary Chua said today.

Chua, who heads financial education firm Smart Financing, said the housing loan approval rate, which was at least 65 per cent about seven years ago, has been showing a downward trend this year with banks rejecting a higher number of applications.

He said statistics show that the 53 per cent of loan approvals by banks in the first quarter slid to just 47 per cent for residential property loan approvals in the third quarter.

“To me this is one of the key points affecting the market as well, where the banks are tightening their belts and consumers are finding it difficult to get financing from the banks to fund their dream homes, so this would definitely get even tougher moving forward,” he said during PropertyGuru's Property Market Outlook 2016 forum here.

Chua said that banks in Malaysia are suffering from low liquidity as they have lent out most of their money to Malaysians.

“And at the moment, at the industry, it’s over 90 per cent, meaning 90 per cent of the banks’ money have been lent out to consumers. That means banks are having difficulty or stress in terms of getting more money to lend out,” he explained.

“For the banks, mortgage or housing loan is the lowest yielding business to them, hence if they have limited funds to lend out to consumers, housing loans will be the first one that they will pull back,” he said, comparing housing loans to the banks’ products with higher profit margins such as credit cards and car loans.

Chua said first-time house-buyers with monthly incomes of RM5,000 also face challenges in securing loans, as banks impose a 60 per cent lending cap, which means they can only borrow a total of up to RM3,000 per month for items such as credit cards, car loan, mortgages.

Noting that current laws require banks to set aside 4 per cent of their funds and deposit this reserve in Bank Negara Malaysia's accounts, Chua suggested that this figure be brought down as it was done in 1998 and 2008 to enable the banks to have more cash to lend out.

He also said bad loans are at a “historical low” as only 1.2 per cent of borrowers have failed to repay their bank loans.

Developer Datuk Dr Vincent Tiew, who was also on the six-man panel of speakers, said that less banks in Malaysia are giving out loans now as some of them are trying to merge.

Tiew, who is the managing director of Andaman Property Management, said between 35 per cent to 65 per cent of loan applications by his prospective buyers are turned down, which meant his firm would have to approach 16 buyers to sell off 10 units.

He also spoke of the banking industry’s weaker support to the housing industry, where banks would slowly roll out loan approvals in piecemeal fashion for a development even if they had confidence in the project.

Siva Shanker, CEO of property agency PPC International, said it was time for the government to stimulate the property market, noting that past cooling measures to slow down the “mad increase” in property value have been effective and are no longer required.

This post has been edited by jalsrix: Dec 17 2015, 05:21 PM

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This post has been edited by accetera: Dec 19 2015, 03:12 AM

Just check back their past posts u know who is who. I think both parties also have their agenda.

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Skyluxe will do well. Anybody who thinks otherwise does not understand the supply side of Bukit Jalil. If ZR/KR are low end condominiums, then BJ has an acute shortage of mid end condominiums.

Pls explain quantitatively. And supply vs demand of both low end and middle end.

Thanks

Ho ho Ho merry Christmas ^^

Feeling in the stomach. LOL.

No doubt the market served by KR/ZR and pier are quite saturated, he is of the opinion that skyluxe is fitting the supply for demand in higher market range.

The higher market range isn't saturated yet ....

According to him KR/ZR are just low end .....which is saturated now.

ps: Just my interpretation.

Quantitatively pls. If not just talkot at kopitiam

Saturated = __ ?
Supply = __?
Demand = __?

Thanks.

It was a feeling in the stomach as I already said. LOL.

The units near awan besar lrt station are mostly lower end to mid end the most..
On the opposite side, high rise buildings are packaged to appear as mid end to higher end.

what he Is trying to say is the units in total based on tht classification aren't the same, so the number units in the lower end outweighs the higher end thus targeting different market.

and skyluxe seems to be promoting itself as a product of a higher end development lo

How u all judge a development whether is it highend, mid-highend and midend.
by facilities? by number of unit? by it density?
Actually it is just agent or developer creating something that buyer feel it is worth to buy.
For me it is simple whatever class of a condo or landed, the classification is base on the type of residence who staying there. For example, just assume if majority resident in a condo are millionair in USD even that is a apartment with no facilities it also a highclass places ma.
Whatever level super higiend, highend, mid-highend and midend just to create an attraction point by developer marketing team.

judge by the finishes and material used in the unit, facilities, landscaping.

from my opinion, for highrise

affortable below 500 psf
midend 500-650psf
mid highend 650-800 psf
highend 800 psf ++

Mainly price and workmanship.

There are high rise that market as high end but the quality of the finishing is terrible, and there are those that market as lower ones end up being good.

Disagree.
Price tags simply asked by developer.
Same prices can get high end some low end, depends on location also.

Workmanship, famous architect design, material, facilities all to determine whether high end or low end.

i think most people will come to his mind is
finishes and material used for that unit which also equal to quality of delivery.
Unfortunately, we cannot know whats the end product that we will get eventually. in SnP just a very simple and basic description of specification of the project/ unit. You donno what flooring, bed room & bath room fitting, electric cable, even a lift that we will get. We are just base on the show room or brochure to imagine what it will look as it.
Back to quality of work we don even get assume in SnP. Some developer said i get wat international certified but we don get assume that the min score in SnP. If fall bellow that Score what we will get compensate just like the area of the unit.

Getting academic into the condo "classification" is not much point for this thread. Main thing is that now we have someone who thinks skyluxe is going to do well - in terms of sales - in particular.

By the way is there any project in this area isn't doing well in the sales so far ?

Maybe time has change, previous success isn't indicative of tomorrow.....

Five year ago a condo selling 500k ppl call it highend condo but five year later a lot of condo with a nice faclities is selling 800K ppl call it highend condo but for the old condo ppl call it old condo or normal condo and never heard ppl say highend condo again.

This post has been edited by AlanProperty: Dec 18 2015, 05:32 PM

only time will tell whether it will do well to be honest...
I would prefer this area rather than staying near the LRT or such great proximity with the mall..