60percent Housing Loans Rejected
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Malaysia's property market remains weak partly because many housing loan applications are rejected by financial institutions, according to the Real Estate and Housing Developers Association (REHDA), reported The Edge.
"Banks and developers have different sets of statistics. From what we have heard, the rejection rate is as high as 60 percent" said Datuk Ng Seing Liong, a former president of the group.
However, lenders claim that around 80 percent of mortgage applications are approved. One possible reason for this discrepancy is that financial institutions are probably screening out the applicants and only a smaller number get to submit the required documents, he said.
"The standard is so high and it is difficult for potential home buyers to get financing" said Ng, who is also the committee chairman of the Malaysia Property Exposition (Mapex).
He also announced that Rehda will hold a total of 22 property exhibits across Malaysia this year. Of this, the biggest will be the national Mapex that will be held at the Mid Valley Exhibition Centre in Kuala Lumpur on 14-16 April.
He is inviting people to the attend the property showcases, adding that while the general real estate sector remains soft, there is still demand for certain kinds of properties, particularly low-cost houses.