Bank Negara likely to announce property curbs next weekKUALA LUMPUR: Bank Negara is expected to announce next week measures to curb property speculation and a programme to create financial awareness for the youth, said sources.
The introduction of a loan to value requirement for people buying their third house or more has been talked about, but central bank governor Tan Sri Dr Zeti Akhtar Aziz said any new rules regarding property loans would not be a blanket clamp.
“We want to promote house ownership but we want it to be done in an orderly manner and we don’t want speculative activity,’’ she said after a media engagement programme at the Global Islamic Finance Forum.
“So, for first time house owners and perhaps even the second one, any new rules will not apply.’’
Zeti acknowledged there were pockets of property bubbles in the country, but on the whole, steep property rises were not seen throughout the country.
“If we consider there is any imminent risk of a property bubble, of course we will take pre-emptive action. We are not going to wait for the bubble to happen before taking action,’’ she said.
Debate over the implementation of a loan to value ratio has been ongoing and the understanding is that people buying their third house or more would be required to pay a larger downpayment than the current standard minimum of 10% of the value of a home.
On Wednesday, Deputy Finance Minister Datuk Donald Lim Siang Chai told parliament Bank Negara was studying possible policy changes for those taking up loans to buy a third house or more.
He also said prices of properties in several locations in large cities in the country had shot up due to speculation and if the situation was not controlled at an early stage, home prices would go up beyond the consumer’s financial means and may affect socio-economic growth.
Lim said people would also face difficulty in buying houses, which might lead to an increase in debts.
“The loan-to-value ratio will be specific in nature and its implications on the country’s economic growth will be taken into account,” he added.
Zeti said the banking system through its own risk management and governance process was addressing rising property prices and Bank Negara had other pre-emptive areas it might take up.
One example she gave was on financial literacy and management especially for the younger population below the age of 30.
“We want them to be better positioned to manage their finances when they acquire a car and a house in the beginning of the career,’’ she said, adding that the central bank would introduce programmes for those purposes and was ready to deal with any excesses through a wide range of instruments.
they both considered second time purchaser if they already jointly own a property?
Aug 3 2010, 02:50 PM
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