Buying an affordable property will be easier as developers are shifting to build economically-priced houses of late.
Property developer Mah Sing Group is expected to be among the top beneficiaries of the government’s plan to relax home lending rules, reported The New Straits Times.
“Given Mah Sing’s pure domestic exposure and shift towards affordable products, any form of relaxation should thus benefit them,” said Credit Suisse. But it noted that 74 percent of group’s sales target this year comprises homes costing over RM500,000.
Housing Minister Zuraida Kamaruddin recently announced that there are talks between her department as well as Bank Negara Malaysia (BNM) and the Ministry of Finance to ease mortgage rules to help the bottom 40 percent (B40) and middle 40 percent (M40) households apply for housing loans.
The Department of Statistics categorise the B40 and M40 groups as families with a monthly median income of RM3,000 and RM6,275 respectively.
Moreover, Prime Minister Tun Dr Mahathir Mohamad agreed that financial institutions are too strict in screening housing loan applicants, and there should be a different standard for those purchasing their first home.
Given a 35-year housing loan with an interest rate of 4.4 percent, Credit Suisse estimates that B40 households can afford properties costing up to RM230,000, while M40 families can purchase homes costing as much as RM840,000.
At present, Mah Sing has a land bank of 2,116 acres with a total gross development value of RM27 billion, including unbilled sales.
Image sourced from Mah Sing
This article was edited by the editorial team of PropertyGuru. To contact them about this or other stories email editorialteam@propertyguru.com.my
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