It’s more bad news for the local property market. After seeing a decrease in sales last year, the overall sentiment is expected to be subdued this year, says the research arm of property consulting firm Rahim & Co.
“The property market is expected to remain subdued for a period of 12 to 18 months,” the firm told a news conference here on in its summary of findings on the Property Market Review for 2016 and 2017.
The firm added that it will be a buyers’ market as there will be a period of adjustment and price consolidation to close the gap between prices demanded by sellers and those looking to buy.
“Affordable housing will continue to be popular this year where the people are facing rising cost of living especially for young families,” it said.
Just before the tabling of the Budget last year, many pressed for more affordable housing projects, especially under the PR1MA scheme.
The government responded with a “stepped-up” end-financing scheme that grants homebuyers easier financing with a total loan between 90% to 110%.
It helps buyers ease their monthly instalments for the first few years and rejection rates are drastically reduced, meaning opportunities to get a higher loan. The scheme is effective January 1 this year.
The introduction of the scheme comes amid rising household debt. Malaysia clocks one of the highest in the region, at 89.1% or RM1.03 trillion, leading Bank Negara Malaysia (BNM) to implement stricter lending measures.
But the central bank has denied that such tightening is the reason many Malaysians can’t land their first home. It cited the lack of affordable housing instead.
