In spite of Bank Negara Malaysia's (BNM) tighter lending criteria, local demand for houses continues to be strong, according to property developers.
"Despite the central bank's tightening of the lending rules, we are selectively optimistic for certain segments, and we must fit supply to demand and meet market expectations," said Tan Sri Leong Hoy Kum, CEO and Group Managing Director of Mah Sing Group Bhd.
"There is continued demand in certain segments such as landed residential properties above RM1 million in good locations, especially in gated and guarded schemes."
Instead of aiding the property sector, the central bank's stricter lending rules are only delaying the loan application process, said Mah Sing, which is the country's second biggest developer by sales revenue.
Meanwhile, Datuk FD Iskandar Mansor, Managing Director/CEO of Glomac Bhd Group, said that home prices have stabilised in 2012, with buyers being more cautious in their property purchases due to external factors such as the world economic growth and the BNM's tighter lending criteria.
He noted that "landed residential properties are very much in demand", particularly houses priced from RM200,000 to RM600,00.
"In the past few years, our percentage of residential and commercial properties has been the same, but this year we can see the trend is moving more to landed residential properties."
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