H1 property sales fall by 39 pct - REHDA

Property sales in Malaysia slipped to 39 percent in first half of 2016 (H1 2016) when compared to the robust 52 percent posted a year ago, due to slower demand and end-financing related issues.

Real Estate and Housing Developers' Association (REHDA) president, Datuk Seri FD Iskandar, said first-time buyers declined by 13 percent in 1H 2016.

He said half the residential units launched were priced below RM500,000 and all states retained prices, except Malacca.

"The main issue the purchasers are facing is when they get financing up to 75 to 80 percent. Somebody has to give the 10 to 15 percent," he said after a media briefing on REHDA's Property Industry Survey here today.

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

Iskandar said the end-financing by home-builders were ultimately to help first-time buyers bridge the gap in the funds needed for the initial payment.

However, only developers with strong balance sheets could give the facility to home-buyers and they were not many of them, he said.

He also said that REHDA rejected the proposal to provide 100 percent financing to house-buyers, instead was willing to bridge the gap between bank loans and deposits.

"No developer in Malaysia has the capacity to provide 100 percent loan to house-buyers, but the proposal would at least assist 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.

"It's either the banks relax, give a higher form of financing or to those developers who can afford it to come in and provide the bridger," he added. -- Bernama