MBSB: Sup­ply glut in high-end prop­erty

The Star Malaysia - StarBiz - - News -

KUALA LUMPUR: Malaysia Build­ing So­ci­ety Bhd (MBSB) pres­i­dent and chief ex­ec­u­tive Datuk Seri Ah­mad Zaini Oth­man says there is a sup­ply glut in the high-end prop­erty seg­ment.

“Sen­ti­ment for af­ford­able houses is there, but there is a bit of a glut in the high-end prop­er­ties.

“I think what Bank Ne­gara is say­ing, in terms of be­ing more cau­tious, I think is in­deed true,” Ah­mad Zaini told re­porters on the side­lines of a sign­ing cer­e­mony for a so­lar farm fi­nanc­ing project yes­ter­day.

He said that al­though the bulk of MBSB’s loan port­fo­lio is for the prop­erty sec­tor, it is mainly for medium to af­ford­able houses.

MBSB’s prop­erty loan ap­proval rate stands at about 55%, he added.

The prop­erty mar­ket has been in the lime­light with the re­cent de­ci­sion by the gov­ern­ment to freeze de­vel­op­ments of fu­ture high-rise lux­ury res­i­den­tial projects with units cost­ing more than RM1mil.

The de­ci­sion was made fol­low­ing Bank Ne­gara’s find­ings on the mis­match of hous­ing de­mand and sup­ply in the coun­try.

The cen­tral bank said there was a huge amount of ser­viced apart­ments, small of­fice/home of­fice, re­tail and of­fice space that were com­ing on­stream in the next four years.

Mean­while, on the merger ex­er­cise be­tween MBSB and Asian Fi­nance Bank Bhd (AFB), Ah­mad Zaini said “there is no turn­ing back and the merger is go­ing to hap­pen”.

“We al­ready paid 10% for the as­set and it is a mat­ter of in­te­gra­tion. The whole process is ex­pected to be com­pleted by end-Jan­uary and we will as­sume 100% con­trol,” he said. MBSB is in the midst of ac­quir­ing AFB in a RM644.95mil deal that would give it the li­cence to be­come a full-fledged Is­lamic bank.

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