The house price in Sabah is expensive - was said to be the reason why it is difficult for the low income groups in Sabah to own a house, by Bank Negara.

Bank Negara also on the other hand denied that the stringent housing loan requirements imposed by the bank have caused the problem.

Deputy Governor of Bank Negara, Marzunisham Omar in his statement revealed that the purchased of housing unit in Sabah last year has indeed increased with a significant growth of 12.9 percent, which a clear indication that bankers have continued to approve housing loan to buyers.

The existing regulation, he said, did not restraint buyers from getting the financing they needed, as the qualified applicant would get their loan approved once the requirements are fulfilled with satisfaction.

However, he noted that the banks are unable to give loan to whose financial records or credential indicate that they may face problem repaying their loan, in which the bank is certainly can't give loan to people to buy house they can't afford.

Marzunisham said the average price house in Sabah as the third quarter of last year was RM419 000, lower compared to RM430 000 in Selangor and RM655 000 in Kuala Lumpur.

Nonetheless, it is higher compared to the average price house in Penang, which is recorded to be RM360 000 for the same period.

Marzunisham was responding to a question by the President of Sabah Housing and Real Estate Developers' Association (SHAREDA), Datuk Francis Goh, who blamed rigorous banking regulations for prospect home buyers to secure loan during an Economic Forum organized by Malaysia International Chamber of Commerce and Industry recently.

Goh claimed that Bank Negara had over the last two decades been very protective of bankers rather than helping property developers.

Bank Negara should have the banks loosen some of their loan requirements, which according to Goh, have made it almost impossible for low income families, who were the target group for affordable homes, to buy and own a property.

Goh also stressed that it would be pointless for developers to answer the government's call to build more affordable homes if in the end the intended buyers could not get the loan they needed to buy the house.

He said that the problem with affordability is not just about whether the buyers have the money but whether they can get the housing loan from the bank, adding that despite the encouragement from the government for the developers to build more affordable housing, it would still be difficult for them to dilute the products if there are no buyers.

Marzunisham who spoke with the media after the forum said that Bank Negara had always recognized the importance of the property sector and the role of developers in providing housing for the people.

He also urged developers to work closely with the government as well as home buyers' association to find a win-win solution to the affordability issue faced by the housing industry.