The Edge, Photo Credit to The Edge
clock 27-09-2018
hit 245

Bank Negara: Imbalances in Property Market Continue to Persist

According to Bank Negara Malaysia's (BNM) financial stability review for 1H2018: “Imbalances observed in the property market continue to persist.”


“The number of unsold housing units, correspondingly increased to about 146,196 units as at end of first quarter of 2018, with more than 80% of unsold units priced above RM250,000,” said BNM.

The central bank, however, also mentioned that there is still demand out there for affordable homes.

“Nevertheless, sustained demand for affordable housing, particularly from first-time homebuyers and prudent underwriting practice in lending to the property market and related sectors are expected to mitigate risks of a broad based price correction.”

In February, BNM commented in its quarterly bulletin that the country faced a shortage of affordable houses for the masses.

The central bank also revealed back then that data showed homes in the country were “seriously unaffordable" in 2016 compared to global standards.

Meanwhile, BNM said that “Risks from household sector exposures continue to be mitigated by prudent underwriting and loan affordability assessments by financial institutions and sound risk management practices.

“New household borrowings remained of high quality.”

It said that about 75% of fresh loans were approved to “borrowers with debt service ratios (DSR) of less than 60%.”

“Overall household debt accumulation has also been on a more sustainable path relative to income growth, as a result of the cross-cutting measures that have been implemented since 2010.

“The ratio of household debt-to-GDP continued to moderate and currently stands at 83.8% in the 2Q 2018 (2017: 84.2%).”

As for the commercial segment, things are not so rosy.

“Excess supply of office space and shopping complexes is also expected to persist as vacancy rates deteriorated further in the first quarter of 2018.”




WHAT DO YOU FEEL ABOUT THIS?

0
LOVE
0
HAPPY
0
SURPRISED
0
SAD
0
ANGRY


COMMENTS
Use a Facebook account to add a comment, subject to Facebook's Terms of Service and Privacy Policy. Your Facebook name, photo & other personal information you make public on Facebook will appear with your comment.

SIGN UP NEWSLETTER

logo
Monthly Column
The staple of your property-related materials. It's all about being ahead of the game and with The Column, you get carefully selected information that will keep you informed and running with the pack. The best news, articles and properties on the market from the Property Hunter portal, conveniently wrapped and ready, just for you.

logo
Weekly Window
Your weekly dose of what's hot and what's not in property. The window is your view into the realm of real estate in Malaysia, curated from our portal based on the most popular pieces over the week. For those who just can't get enough, this is for you. Ain't nobody got time for dailies anymore, weekly is the new daily.