KUCHING: The growth of property market in the first quarter of this year has declined as compared to the corresponding period last year. Sheda chairman Kuching Branch Sim Kiang Chiok said despite the downturn in the first quarter, the situation in the second quarter has improved.
The biggest challenge for the property market is to fix the triangular relationship of the developer, purchaser and banker, he said. “At present moment the developers are willing to build, buyers are ever increasing due to population growth and rural-urban migration, but the banks are constrained by the strict lending guidelines by Bank Negara Malaysia.
“The lending policy based on proven income is affecting the demand of houses, especially the first time house buyers are facing insufficient income or poor payment record,” he said.
Sim pointed out that staggered repayment for end- financing should also be allowed so that the initial first five years repayment can be low and affordable to match the payment ability of the buyers. He also said that individual banks should be allowed to carry out their lending based on their own assessment instead of just following the BNM guidelines.
Other incomes not declared to IRD (as proven income) should be taken in as assessment by individual banks to lend to house buyers, he said. Banks should therefore be allowed to lend based on asset lending instead of only on proven income, he added. Sim also suggested the government encourage more investments by removing Real Property Gain Tax (RGPT) after the fifth year.
