Sunway Berhad Still Upbeat On Property Market But Says Financing Still A Problem

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(Bernama pic)KUALA LUMPUR: Sunway Berhad says the property market is still strong despite a perceived lull in sales of new units
However, the township developer said prospective buyers still faced difficulties in securing loans
“The main factor deterring buyers is the difficulty in obtaining financing,” Sunway Berhad property division managing director, Sarena Cheah, told a media briefing on the company’s 2019 outlook
Bank Negara Malaysia had in 2015 tightened the conditions to procure loans to prevent a bubble in the property market
The rules were also tightened to prevent speculative activities in the market
Cheah said as long as developers were offering products with the right price and right location, property projects would perform well
The company currently has an overhang of RM400 to RM500 million in unsold properties, mostly in Iskandar, Johor
Sunway Berhad also announced a new property financing programme called “Super 5”, which allows purchasers to pay a RM5,000 deposit and come under a flexi payment plan for the differential sum
As part of a promotional campaign ending June 30, the company will offer a 95% guaranteed financing for eligible buyers with special interest rate, and exemption from stamp duty on ownership transfer for properties valued above RM1 million
Cheah said Sunway is targeting sales of RM1.3 billion for 2019, and is expected to launch projects worth some RM2 billion
“We are confident that the launches will continue to do well as more than 70% of the new launches are either in integrated developments and townships where we co-invest in perpetual growth that delivers lifelong value for our community.”Sunway has a current landbank of 3,289 acres with a total gross development value of RM56.8 billion with 54% of its landbank in Johor, 25% in Klang Valley, 6% in Penang, 1% in Singapore and 14% in other locations. - FMT

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