{"id":26862,"date":"2016-09-22T15:12:17","date_gmt":"2016-09-22T08:12:17","guid":{"rendered":"http:\/\/www.siamlandbank.com\/propertynews\/property-news\/malaysias-developer-lending-scheme-market-saviour-or-crisis-bringer\/"},"modified":"2016-09-22T15:29:03","modified_gmt":"2016-09-22T08:29:03","slug":"malaysias-developer-lending-scheme-market-saviour-or-crisis-bringer","status":"publish","type":"post","link":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/malaysias-developer-lending-scheme-market-saviour-or-crisis-bringer\/","title":{"rendered":"Malaysia\u2019s developer lending scheme: market saviour or crisis bringer?"},"content":{"rendered":"


\nAnalysts and lawmakers are split over a proposal to licence developers as money lenders
\nSunrise in Kuala Lumpur. jamesteohart \/ Shutterstock
\nAs more and more units linger on the market, the Malaysian government is in the midst of passing a potentially seminal policy that could either unburden the property sector or break the economy.
\nThe Malaysian cabinet is pushing for the review of a financing scheme that would licence developers to extend credit to prospective buyers, Reuters reported. Minister for Urban Wellbeing, Housing and Local Government Tan Sri Noh Omar, who proposed the policy, described it as a \u201cwin-win situation for both developers and house buyers.\u201d
\nDevelopers sold only 39 percent of new units launched in the first half of this year, compared with 52 percent in the second half of 2015, according to data released last week by the Real Estate and Housing Developers Association (REHDA). The cumulative supply in Kuala Lumpur\u2019s high-end condominium market stands at 43,782 units in the first half of 2016, Knight Frank reported.
\nMeanwhile, the rejection rate for mortgage applications hit 61.7 percent in January, a record. Buyers \u201cdon\u2019t have the capacity to find the margin of financing,\u201d REHDA president Fateh Iskandar Mohamed Mansor told Reuters.
\nMore: Malaysian authorities worry about 70% drop in real estate investments
\nProperty analysts are split over the notion of licencing developers as lenders. In a statement, Fitch warned that the financing scheme will be the\u00a0impetus to a subprime mortgage crisis, which \u201ccould undermine the strength of the financial system.\u201d
\nNazir Razak, chairman of CIMB Group, also dismissed the scheme as a \u201cdangerous idea\u201d on Instagram.
\nTimes have soured lately for Malaysia overall, ailing from weak crude oil prices and sagging economic growth. Approved real estate investments in the country in the first quarter amounted to MYR12.1 billion, compared with MYR26.9 billion in the same period last year, according to the Malaysian Investment Development Authority.
\nSome 1,138 high-end units are in the pipeline for Kuala Lumpur by the second half, according to Knight Frank, with projects such as KL Trillion, Le Nouvel, Seti Sky Residences, Three28 Tun Razak and One Kiara.
\nRead next: 10 things to know about Transit Oriented Developments in Malaysia
\n
\nSource : property-report.com
\nRead more…Malaysia\u2019s developer lending scheme: market saviour or crisis bringer?<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

Analysts and lawmakers are split over a proposal to licence developers as money lenders Sunrise...<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"false","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"spay_email":"","footnotes":"","jetpack_publicize_message":"","jetpack_is_tweetstorm":false,"jetpack_publicize_feature_enabled":true},"categories":[1],"tags":[],"class_list":["post-26862","post","type-post","status-publish","format-standard","hentry","category-property-news"],"jetpack_featured_media_url":"","jetpack_publicize_connections":[],"jetpack_sharing_enabled":true,"jetpack_shortlink":"https:\/\/wp.me\/p75ss1-6Zg","jetpack-related-posts":[{"id":35628,"url":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/malaysian-developers-turn-to-foreign-investors\/","url_meta":{"origin":26862,"position":0},"title":"Malaysian developers turn to foreign investors","date":"November 24, 2016","format":false,"excerpt":"\r The big woo-athon for overseas buyers begins A weak ringgit, growing oversupply and slow local sales saw developers courting foreign buyers, sending their agents to road shows abroad to promote their projects. And with China as their biggest market, some agents travel to different Chinese cities on a monthly\u2026","rel":"","context":"In "Property News"","img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":30659,"url":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/malaysian-developers-are-accused-of-manipulating-home-price-inflation\/","url_meta":{"origin":26862,"position":1},"title":"Malaysian developers are accused of manipulating home price inflation","date":"October 19, 2016","format":false,"excerpt":"\r Time for government to step in? Road junction at Suria KLCC with Petronas Twin Towers. MEzairi \/ Shutterstock.com Price increases among Malaysian homes may not be really organic and are prone to manipulation by real estate developers, experts contended in response to an exhaustive report released yesterday by Malay\u2026","rel":"","context":"In "Property News"","img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":8186,"url":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/ura-revises-rules-for-property-developers\/","url_meta":{"origin":26862,"position":2},"title":"URA revises rules for property developers","date":"March 10, 2016","format":false,"excerpt":"\r Construction in Singapore. In a bid to promote accountability and protect the interests of home buyers, the Urban Redevelopment Authority (URA) recently revised the criteria for issuing sales licences for home builders, reported The Straits Times. First, the minimum paid-up capital or deposit for those applying for a licence,\u2026","rel":"","context":"In "Property News"","img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":39707,"url":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/let-malaysian-home-buyers-borrow-more-money-sarawak-developers-plead\/","url_meta":{"origin":26862,"position":3},"title":"Let Malaysian home buyers borrow more money, Sarawak developers plead","date":"January 5, 2017","format":false,"excerpt":"\r Are Kuching banks too strict with their loans? Kuching, capital of Sarawak state in Malaysia. Abang Faizul \/ Shutterstock.com In a subdued property market, developers in the Malaysian state of Sarawak are exhorting financial institutions to demonstrate more lenience toward borrowers. Sim Kiang Chiok, the Kuching advisor for Sarawak\u2026","rel":"","context":"In "Property News"","img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":54919,"url":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/developers-bid-more-aggressively-amid-signs-of-housing-market-rebound\/","url_meta":{"origin":26862,"position":4},"title":"Developers bid more aggressively amid signs of housing market rebound","date":"May 16, 2017","format":false,"excerpt":"\r With buyers snapping up units at projects such as Seaside Residences (pictured), new home sales more than doubled from the same month last year. The spike in new home sales following an easing of property cooling measures saw more developers aggressively bidding at land auctions in Singapore, reported Bloomberg.\u2026","rel":"","context":"In "Property News"","img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":8928,"url":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/its-crunch-time-for-sg-developers-before-the-buyers-stamp-deadline\/","url_meta":{"origin":26862,"position":5},"title":"It\u2019s crunch time for SG developers before the buyer\u2019s stamp deadline","date":"March 23, 2016","format":false,"excerpt":"\r Developers are confident that they can dispose their unsold units in time Alex Residences in Redhill has 173 unsold units Some developers in Singapore are optimistic they can sell all the remaining units in their private residential projects before the stipulated deadline, even if they don\u2019t offer huge discounts,\u2026","rel":"","context":"In "Property News"","img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]}],"_links":{"self":[{"href":"https:\/\/www.siamlandbank.com\/propertynews\/wp-json\/wp\/v2\/posts\/26862"}],"collection":[{"href":"https:\/\/www.siamlandbank.com\/propertynews\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.siamlandbank.com\/propertynews\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.siamlandbank.com\/propertynews\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.siamlandbank.com\/propertynews\/wp-json\/wp\/v2\/comments?post=26862"}],"version-history":[{"count":0,"href":"https:\/\/www.siamlandbank.com\/propertynews\/wp-json\/wp\/v2\/posts\/26862\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.siamlandbank.com\/propertynews\/wp-json\/wp\/v2\/media?parent=26862"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.siamlandbank.com\/propertynews\/wp-json\/wp\/v2\/categories?post=26862"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.siamlandbank.com\/propertynews\/wp-json\/wp\/v2\/tags?post=26862"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}