KUALA LUMPUR, March 13 — Malaysians looking to buy homes are increasingly struggling to secure financing, with developers reporting loan rejection rates of up to 45 per cent for certain property price segments, according to the Real Estate and Housing Developers’ Association (Rehda).

The industry survey found homes priced between RM500,001 and RM700,000 recorded the highest loan rejection rates, with many developers reporting rejection levels ranging from 31 per cent to 45 per cent.

Rehda president Datuk Ir Ho Hon Sang said financing difficulties remained one of the key challenges facing the property sector.

“Seventy-two per cent of respondents faced financing issues in the second half of 2025, with 83 per cent experiencing end-financing difficulties,” he said while presenting the findings of Rehda’s Property Industry Survey today.

Developers cited several factors behind the loan rejections, including buyers’ income ineligibility, adverse credit history and inadequate financial documentation.

The financing hurdle has also contributed to slower property sales. In the second half of 2025, 17,971 residential units were launched but only 3,784 units were sold, bringing the take-up rate down to 21 per cent from 38 per cent in the previous half-year.

Ho said the findings reflect the broader challenges faced by both buyers and developers amid current economic conditions.

“Some of the struggles are with banks and paperwork. The banks need a lot of paperwork and when they loan recipients can’t produce them it creates a problem ending with the loan being rejected,” said Ho.

Despite this, the survey found local buyers continued to dominate the market, with 74 per cent of developers reporting their buyers were predominantly Malaysians.

Buyers aged 29 to 44 made up the largest group of purchasers, while the main reason for buying property remained self-occupation, followed by upgrading and investment purchases.

Looking ahead, Ho said the industry remained cautiously optimistic about the outlook for the coming year.

“Respondents viewed the market neutrally in the first half of 2026, with optimism picking up slightly in the second half of the year,” he said.

The Rehda Property Industry Survey (PIS) involved 166 developers across Peninsular Malaysia and was conducted by the Rehda Institute between December 2025 and February 2026 to assess market performance in the second half of 2025 and the outlook for 2026.