News: Ease Financing Margin For Home Buyers, Says S P Setia

Aug 15, 2019

S P Setia Bhd hopes the government would make the financing process for first-time home buyers more affordable, particularly those looking to use the property for owner-occupation.

The margin of financing is important for buyers as it allows them to fork out a lower down payment when buying a property.

“The reduction in overnight policy rate (OPR) (by Bank Negara Malaysia recently) helped a bit in terms of our take-up rate, but the more important thing for buyers is the margin of financing, as most of them can afford the instalments,” said S P Setia President and CEO Datuk Khor Chap Jen, reported Bernama.

“The biggest challenge for them is the down payment. If the margin of financing is less, it means that they have to pay even more for the down payment.”

Read more: What Is Overnight Policy Rate (OPR) And What It Means For You

Khor also hoped the threshold for foreign property buyers would be lowered to enable them to acquire property in Malaysia and help alleviate the property overhang.

“We appreciate the Government’s efforts to clear some of the unsold units, which includes the Home Ownership Campaign (HOC), but we are currently facing a property overhang, especially higher priced properties,” he said.

Read More: We have a list of project reviews by S P Setia. 

“For example, in Selangor, the current threshold is set at RM2 million for the foreign buyers, and it should be lowered to maybe RM1 million in line with all the other States. We have been receiving a lot of interest from foreign buyers and we should take advantage of that opportunity.”

Meanwhile, the proposed development project of S P Setia in Osaka, Japan will be launched in early 2020, instead of by end-2019.

This comes as the development plans for the RM1.8 billion project has just been approved, and the company is currently making the necessary preparations, such as submitting the project’s detailed building plans.

The 1.98 ha integrated development project is a stone’s throw away from Kansai International Airport and is situated next to a premium outlet mall.

“We are taking everything into consideration. Japan will be having the Olympics next year, so if we were to start construction now, it would be very expensive. So we expect to launch (the project) early next year,” said Khor.

“There is a lot of interest and queries because it is very convenient for those working in Kansai Airport.”

 

Image source from The Sun Daily

 

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Nicholas Kong
Real Estate Negotiator
Dutama Properties
nick8089333@gmail.com
(+60) 12-8089333