PETALING JAYA: More measures to curb lending to the property sector may be in the offing this year, judging from the resiliency of lending to the sector.
Malaysian Rating Corp Bhd (MARC) chief economist Nor Zahidi Alias said he expected the pace of lending to the property sector to continue to be strong this year.
“Lending to the sector will still remain resilient this year. Part of the reason as documented by Bank Negara in its latest annual report is that property prices remain elevated. This will induce investors to keep focusing on property investment, as it is often the safest investment with lucrative returns in Malaysia,” he told StarBiz.
As of January this year, growth in loans for residential property rebounded to 13.4% after softening to a cyclical low of 12.4% in March 2013. Loans to residential and non-residential properties accounted for 40.8% of total loans in January. This does not include the amount of loans given for the purpose of construction.
Residential property loan growth maintained its momentum at 13.5% year-on-year in February 2014 versus 13.4% in January.