First-time buyers of affordable residential property continued to support house prices in Malaysia
in 1H21 despite the housing market reversing improvements observed in 2H20, as the effects of
the positive response to various homeownership incentives introduced by the Government
subsided. According to Bank Negara Malaysia’s Financial Stability Review report for 1H21,
sustained demand from first-time house buyers for affordable property is expected to mitigate
risks associated with a significant house price correction that could undermine household
balance sheets and increase potential losses for banks. Limited exposure of banks to loans for
the purchase of property by household investors further contained such risks. Despite interest
rates being at record low levels, existing macro prudential measures have also continued to
reinforce prudent lending behaviour among banks, thereby containing a build-up of future risks
from a credit-induced residential property price boom such as those experienced in some other
jurisdictions.
RSS Feed
0 comments:
Post a Comment