Property Market in economy down turn estimate to rebound in two years. One of the Property Developers was show a good selling result for the property in Malaysia. At this point in time, SP Setia Bhd did not specify a target because the property market was so bad. SP Setia Bhd’ wanted to test whether this `5/95 programme` will work, and apparently it works very well.

SP Setia Bhd (Malaysia’s No.1 property developer in The Edge Malaysia Top Property Developers Award and Euro money Real Estate Awards in 2005, 2006 and 2007) recently launched 5/95 Home Loan Package has achieved better-than-expected sales of RM300mil amid the softening economy. RM300mil sales in less than two months is very good result in uncertain economy. The RM300mil sales figure was based on bookings made.

Launched on Jan 19, SP Setia’s 5/95 Home Loan Package allows home buyers to pay only an initial 5% of the price of the house while all legal fees and stamp duty on the sales and purchase agreement, among other benefits, will be borne by SP Setia. 0% interest during property under construction period. The package is available until April. Read more »

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Bank Malaysia to cut loan repayments to help housing loan borrowers in uncertain market.Several banks have slashed interest rates imposed on housing loans and more are expected to join in the fray.

Four banks – RHB Banking Group, Public Bank Group, United Overseas Bank Bhd (UOB) and Malayan Banking Bhd (Maybank) – have cut their respective Base Lending Rates (BLR) from 5.95% to 5.55%, following Bank Negara’s move to cut the Overnight Policy Rate (OPR) from 2.5% to 2% on Tuesday. RHB Bank and Public Bank will also be reducing their respective Islamic bank’s base financing rate (BFR) at the same quantum.

RHB Banking Group managing director Michael J. Barrett said housing loans borrower would be able to pay less to service their housing loans with floating rates while individuals and businesses would enjoy lower borrowing costs. Bank Malaysia help housing loan borrowers during these challenging times and provide our customers with more financial support. All the news BLR rates would take effect next Monday. Read more »

Bank malaysia will reduce mortgage loans instalment payments (loan repayment), an exercise that will be completed by the first quarter of this year. Mortgage loans borrowers benefits from lower Base Lending Rate (BLR).

Customers who prefer to retain their loan repayment amounts need to get in touch with their mortgage loan banks. The association of bank malaysia said that the move by all commercial banks to cut instalment amounts follows the request by the Government to help borrowers facing difficult economic times. Loan repayment is one of the plan to help mortgage loans borrower and those are lost carrer in company retrenchmennt.

Lower monthly loan repayments will allow for more disposable income to be in the hands of the public and we reaffirm our member banks’ commitment to continue to be reasonable as well as responsive to the public’s needs. Read more »

Property in Malaysia & Malaysia’s real estate investment trusts (REITs) have been sold down and are trading below their net asset values (NAV), made worse by the softening property market and weakening rent yields.

The challenges facing REITs is not only the negative property market sentiment towards equity, but also the inability to raise capital growth due to tightening credit. Despite the challenging economic conditions this year, REIT managers in the country are confident they can mitigate the impact by looking at various options to raise capital, acquiring properties prudently and focusing on existing assets to ensure strong tenancy.

Axis REIT Managers Bhd chief executive officer and executive director Stewart LaBrooy said part of the growth process of a REIT was to continuously acquire properties to enlarge its portfolio.Axis REIT would not discount the possibility of future acquisitions this year although it may not be as intensive as y2008.
But any potential acquisitions will need to be yield-accretion. Read more »