Housing loans rejection rate causing property sales to remain sluggish

The rejection rate for housing loans is as high as 60%, causing property sales to remain sluggish, says the Real Estate and Housing Developers' Association (Rehda).

"Banks and developers have different sets of statistics. From what we have heard, the rejection rate is as high as 60%," said Rehda patron and past president Datuk Ng Seing Liong.

Banks, however, have said housing loan applications have a success rate of 80%, noted Ng, adding this could be because banks filtered the housing loan seekers before even receiving applications.

“The standard is so high and it is difficult for potential home buyers to get financing," he told the theedgemarkets.com.

Ng said although the overall property market remains sluggish, there is still demand for certain properties, especially affordable homes.

Ng, who is also the Malaysia Property Exposition (Mapex) committee chairman, told a press conference earlier that Rehda and its branches will be organising 22 property expositions nationwide this year.

The largest will be the national Mapex, to be held on April 14-16 at the Mid Valley Exhibition Centre in Kuala Lumpur.

He said Mapex has garnered better response this year, with more than 37 renowned developers confirming their participation so far.

Among participating companies are Eco World Development Group Bhd, Mah Sing Group Bhd, Matrix Concepts Holdings Bhd and S P Setia Bhd. — theedgemarkets.com

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