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Teo: Offer affordable housing loans for young
Published on: Saturday, November 18, 2017

Kota Kinabalu: The younger working generation deserves help to be proud homeowners which will instil a sense of security and belonging while enjoying a decent liveable lifestyle.

"The State Government will always support any effort that will bring benefits to the people of Sabah especially the building of affordable houses either through public or private initiatives."

State Special Functions Minister Datuk Seri Teo Chee Kang said this when opening the 2nd Malaysian Secondary and Primary Property Exhibition – Maspex Sabah 2017, Friday, calling on banks to offer innovative banking products to help youths to buy houses.

"I am glad that a Federal government agency PR1MA is showcasing all their affordable housing projects now under construction in various parts of Sabah.

"I urge young potential home buyers to visit this exhibition where PR1MA homes with 850 square feet floor area are on offer for qualified applicants for around RM200,000.

"I have read in the news stating that the general property market is now experiencing a slower pace of activities.

The impact on property market have been felt by many property investors and intending purchasers after the introduction of various cooling measures by the Central Bank and later with the implementation of GST.

"However, some property experts have expressed that Sabah properties will remain stable and active which is in the stage of self-correction as we usher into the year 2018," Teo revealed.

The Minister cited the Valuation and Property Services Department's property market report in 2016 that there was a total number of 6,983 properties transactions in Sabah with a total of RM3.51 billion, which was about 10 per cent less as compared with 2015.

The report also stated that 79.7 per cent of the total transactions were priced below RM500,000 and only 7 per cent of the transactions were priced at RM1 million and above.

Most of the transactions were in the residential sub-sector with a total value in the region of RM1.308 billion or about 37.2 per cent of the overall market value.

Teo opined: "Based on the figures given, we could safely assume that generally the primary and secondary properties priced in the range of RM500,000 and below are still in good demand.

"This is mainly due to the growing population as well as the ever increasing number of working class relocating from the rural to the urban areas, especially obvious among the younger generation.

"Therefore, there is a need for more affordable housing for the medium low income group especially for the younger working class," he concluded.

Maspex Sabah 2017 from Friday to Sunday held at the Imago Mall is organised by the Sabah chapter of the Malaysian Institute of Estate Agents (MIEA) under the leadership of Victor Wong and attended by MIEA President Eric Lim, both also called on banks to offer flexible and creative lending to the young first time home buyers as financing is the key to home ownership. - David Thien

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