An online property portal, PropertyGuru has proposed for more emphasis on housing loans in Budget 2017 in wake of increasing demands for affordable houses.
A recent customer sentiment survey conducted by PropertyGuru showed that loan rejections remained a top reason for low volume of transaction and market downturn, Bernama quoted the portal saying on Wednesday.
This has been further corroborated by data from other sources showing loans growth in Malaysia reached its lowest in the past decade.
Quoting data released by the Real Estate and Housing Developers Association (Rehda), the portal said only 39% of 7,172 new houses launched in first half of 2016 were sold compared with 52% out of 9,938 units available in second half of 2015.
Propertyguru country manager Sheldon Fernandez said it was better for banks to provide housing loans rather than property developers, which could use their funds for other purposes such as developing their land banks and housing projects.
“The Gen-Y demographic needs loans to buy houses and our statistics show that 84% of buyers took loans to finance their house purchase; 47% opt for 90% loans, while 25% opt for between 70% and 80% financing, he added.