MIEA positive on property market for 2018 | Malaysian Institute of Estate Agents

MIEA positive on property market for 2018

2018-02-06

PETALING JAYA, Feb 6 — The Malaysian Institute of Estate Agents (MIEA) is positive on the local property market despite the hike in the overnight policy rate (OPR), given the strong economic growth, low unemployment rate and young demographic.

MIEA President, Eric Lim said the newly launched Digital Free Trade Zone, coupled with rising crude oil prices would be significant catalysts for economic growth, thus lifting the property market.

“Furthermore, the overall housing loan approval rate last year remained high at 74.2 per cent in the first quarter of 2017, even with the tight ruling for loan application by Bank Negara Malaysia (BNM),” he told a media briefing after launching the MIEA Property Market Sentiment Report 2017/2018 here today.

Lim said the hike in the OPR by the central bank recently would only have a marginal impact on banks’ lending rates, however, the banks should be more flexible in reviewing housing loan applications as this would definitely help house buyers.

“We understand the central bank have their own objective, which is to control household debt. With BNM’s responsible lending policy, I think property speculators are quite unheard of already.

“Buyers nowadays are more genuine, they either buy properties for their own use or for investment. Somehow I think BNM has met their objective and with that, I think they should loosen up a little bit,” he added.

Commenting on the government’s proposal to reduce interest rates for housing loans to ease the burden of buyers, Lim said this was a good initiative as the higher OPR would not effect lending rates.

Meanwhile, the Property Market Sentiment Report revealed an astounding 78 per cent of respondents in the nationwide survey were positive that the favourable economic growth would lift the Malaysian property market.

The report also said as Malaysia heads for the 14th General Election, most respondents felt that political stability is important to ensure improvements in the economy and they expect the property market to improve after the election. — Bernama

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