LBS BACKS GOVT CALL FOR LOWER HOUSE LOAN RATES
Developer also foresees minimal impact from OPR hike on its property launches this year
LBS Bina Group Bhd supports the government’s proposal to lower the housing loan interest rate for house buyers, particularly firsttimers.
“We welcome the deputy prime minister’s plan to bring up this issue with Bank Negara Malaysia as it is also good for property developers.
“The government does not want house buyers to be burdened by high housing loan interest rates,” said group managing director Tan Sri Lim Hock San after the company’s extraordinary general meeting (EGM), here, yesterday.
Bank Negara yesterday raised the Overnight Policy Rate (OPR) by 25 basis points to 3.25 per cent, the first interest rate hike in 3½ years.
It was reported that Deputy Prime Minister Datuk Seri Dr Ahmad Zahid Hamidi would propose that mortgage repayment rate be lowered from the current 4.65 per cent after consultation with Bank Negara.
Lim said LBS expected a minimal impact on its launches this year following the central bank’s OPR decision.
“The OPR does not have direct significant impact on housing developers.”
Lim said the increase in the key rate reflected the country’s strong economy, adding that it would also boost foreign fund managers’ confidence and strengthen the ringgit.
“It is good sign as foreign funds will come in. In developed countries such as the United States, when they raise the i nterest rates, their stock markets also tend to appreciate.” he said.
Meanwhile, at the EGM, LBS announced a RM1.8 billion sales target for this year, saying it was banking on the RM2.2 billion gross development value for its new property projects.
Shareholders also approved the proposed share split into two and bonus issue of one unit for every 10 shares.
LBS’ share price fell one sen to close at RM2.44 yesterday, with 573,200 shares changing hands.