Apr 18, 2012 | Comments 0
Malaysia is trying to mitigate a US-style subprime mortgage lending crisis after it reported an average 6.6 per cent jump in home prices in the fourth quarter of last year, according to The Business Times Malaysia.
“The government is worried about property prices causing a bubble, and we don’t want banks to over-lend to the property sector,” Deputy Finance Minister Datuk Donald Lim was reported as saying.
According to data from Bank Negara Malaysia’s website, housing loan applications jumped 46 per cent in February from a year earlier to RM14.96 (US$4.88) billion,
“We are seeing a lot of foreigners from Middle East and China keen to buy properties in Malaysia,” said Datuk Lim.
Bank Negara in November tightened mortgage lending by limiting the loan-to-value ratio for people taking third mortgages to buy homes.
Recently, local daily The Star reported that the Malaysian government was looking to raise the minimum floor prices of houses foreigners are allowed to buy to RM1 million (US$158, 469) from the current price of RM500, 000 (US$163, 095), in an effort to control the rise in property prices.