Stringent approval on consumer loans, including housing loans, is expected to impact the property market but there will still be a healthy pool of buyers, especially for affordable housing, said Housing and Local Government Minister Datuk Seri Chor Chee Heung.
“To say that the new guidelines wouldn't impact the property market is incorrect, as the move will definitely affect properties in the country. After years of seeing property prices increase, Bank Negara Malaysia, in coming up with the policies, intends to safeguard purchasers in assessing their affordability," he told reporters at The Zest Serviced Apartment key handover ceremony in Puchong here, yesterday.
Effective this year, banks have to use net income (minus tax, EPF and social security payments) instead of gross income in calculating the debt service ratio for loans. This is a pre-emptive move by BNM to contain the rise in consumer debts.
Chor said if property developers are concerned with the government's initiatives, they could build affordable houses that will still have its fair share of buyers.
“In 2009, property priced at RM250,000 to RM350,000 was deemed affordable. These days, properties below RM500,000 are considered affordable.”
Chor said as the country moves towards becoming a developed and high-income nation, the property sector is one of the catalysts to make this happen.
"It's important to keep rates down and ensure effective services are delivered to purchasers."
The Zest @Kinrara 9 is an integrated development by the Trinity Group, and consists of 20 shop offices, 24 retail outlets and 720 serviced apartments in the Bandar Kinrara 9 township.
The apartments are priced from RM250,000 to RM350,000 and were fully sold in six months.
Trinity Group managing director Dato’ Neoh Soo Keat said the company delivers quality and affordable housing to meet the needs of the country's growing population by matching demand and supply as well as providing efficient public utilities and services. It also launched a RM7 million access ramp, linking up with Lebuhraya Bukit Jalil.