KUALA LUMPUR, Dec 5 — Online property portal Malaysia expects the oversupply of property in the market to remain next year.
General manager David Mawer said oversupply of properties would continue to be a challenge for the industry and put pressure on new project launchings.
Apart from oversupply, he said loan rejection could put pressure on the property market.
“When you get rejected, quite often you can get locked out of applying for another loan; that puts pressure on the property sector,” he told reporters in a briefing here today.
He said one factor for loan rejection was lack of awareness among prospective Malaysian home buyers, particularly those buying for the first time, regarding the home loan application process.
Lack of repayment capabilities, unfavourable credit score, banks’ diverse risk appetite and other financial commitments also affect the success rate of the loan application, he said.
Mawer said based on iProperty.com’s findings, only 43 per cent of portal users were familiar with debt servicing ratio (DSR) and how it affects their home loan.
The property portal, therefore, had launched LoanCare, a home loan eligibility indicator to help determine users’ DSR score with an eligibility report from up to 17 banks.
“As the number one place for Malaysians to search for property, we aim to provide a convenient place to find value with transaction data and points of interest, personalised searches and home loan eligibility reports, all in one platform,” he added. — Bernama