{"id":3623,"date":"2015-03-03T10:09:18","date_gmt":"2015-03-03T10:09:18","guid":{"rendered":"https:\/\/www.propertyempire.com.my\/blog\/?p=3623"},"modified":"2015-03-23T10:10:00","modified_gmt":"2015-03-23T10:10:00","slug":"malaysias-property-sector-risks-manageable-for-banks-and-developers","status":"publish","type":"post","link":"https:\/\/www.propertyempire.com.my\/blog\/malaysias-property-sector-risks-manageable-for-banks-and-developers\/","title":{"rendered":"Malaysia’s property sector risks manageable for banks and developers"},"content":{"rendered":"

KUALA LUMPUR (March 3): Despite economic headwinds, both Malaysian banks and property developers are resilient to possible shifts in sentiment and falling property prices, according to Moody<\/a><\/span>‘s Investors Service.<\/p>\n

In a statement Tuesday, a Moody\u2019s senior vice president Stephen Schwartz said that after several years of rapid gains in residential property prices, macroeconomic conditions in Malaysia were turning less positive for the property market.<\/p>\n

\u201cNevertheless, we anticipate a soft landing for property prices, supported by robust, albeit decelerating GDP growth, and stable
\nhousing demand from middle-income households.<\/p>\n

\u201cIn such a scenario, Malaysian developers and banks should be resilient to downward property price pressures,” said Schwartz.<\/p>\n

Moody’s analysis was contained in its just-published report “Malaysia’s Property Sector Risks Are Manageable for Banks and Developers”.<\/p>\n

Moody\u2019s said that Malaysia (A3 positive) had seen a rapid rise in residential property prices, of more than 40% in real terms since early 2009, against a backdrop of increased urbanisation, rising living standards and a long period of low interest rates.<\/p>\n

The rating agency said such a price increase had generally outpaced that of Malaysia’s neighbors.\u201cBut commodity price weakness and China’s ongoing economic slowdown are creating economic headwinds.<\/span><\/p>\n

\u201cMoody’s nevertheless expects Malaysia’s GDP growth to decelerate to a still-solid 4.5%-5.0% in 2015, from 5.8% in 2014,\u201d it said.<\/p>\n

Moody\u2019s however said previously implemented cooling measures, a forthcoming new goods and services tax, and tighter lending conditions, would all add to downward pressure on housing prices.<\/p>\n

Meanwhile, a Moody\u2019s vice president senior credit officer and co-author of the report Eugene Tarzimanov said while delinquencies on mortgages and construction-related loans will likely increase from their current multi-year lows, Malaysian banks had robust capital buffers and healthy pre-provision profitability.<\/p>\n

\u201cAlso, the credit quality of property-related loans is generally good, supported by prudent loan-to-value ratios and low unemployment rates.<\/p>\n

\u201cAs such, Malaysian banks are well positioned to weather a soft landing in property prices. However, mortgages with high loan-to-value ratios and loans to overleveraged households and developers are at greater risk of payment slippage,” said Tarzimanov.<\/p>\n

The report said middle-income households will also be key to Malaysia’s largest listed property developers’ resilience as property price growth slows.<\/p>\n

It said while sales volumes would moderate, they will remain supported by developers’ product offerings that are targeted at middle-income households.<\/p>\n

Moody\u2019s said overseas projects would also buffer developers from the domestic deceleration in price growth.<\/p>\n

\u201cHowever, Moody’s expects developers focused on residential projects located in urban states such as Johor, Kuala Lumpur, Selangor and Penang, will be more challenged,\u201d it said.<\/p>\n

 <\/p>\n

Source : The Edge<\/p>\n","protected":false},"excerpt":{"rendered":"

KUALA LUMPUR (March 3): Despite economic headwinds, both Malaysian banks and property developers are resilient to possible shifts in sentiment and falling property prices, according to Moody‘s Investors Service. In a statement Tuesday, a Moody\u2019s senior vice president Stephen Schwartz said that after several years of rapid gains in residential property prices, macroeconomic conditions in …<\/p>\n

Malaysia’s property sector risks manageable for banks and developers<\/span> Read More »<\/a><\/p>\n","protected":false},"author":17,"featured_media":3582,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_uag_custom_page_level_css":"","site-sidebar-layout":"default","site-content-layout":"","ast-site-content-layout":"","site-content-style":"default","site-sidebar-style":"default","ast-global-header-display":"","ast-banner-title-visibility":"","ast-main-header-display":"","ast-hfb-above-header-display":"","ast-hfb-below-header-display":"","ast-hfb-mobile-header-display":"","site-post-title":"","ast-breadcrumbs-content":"","ast-featured-img":"","footer-sml-layout":"","theme-transparent-header-meta":"","adv-header-id-meta":"","stick-header-meta":"","header-above-stick-meta":"","header-main-stick-meta":"","header-below-stick-meta":"","astra-migrate-meta-layouts":"","footnotes":""},"categories":[13],"tags":[],"uagb_featured_image_src":{"full":["https:\/\/www.propertyempire.com.my\/blog\/wp-content\/uploads\/2015\/03\/bank.jpg",1400,1185,false],"thumbnail":["https:\/\/www.propertyempire.com.my\/blog\/wp-content\/uploads\/2015\/03\/bank-80x80.jpg",80,80,true],"medium":["https:\/\/www.propertyempire.com.my\/blog\/wp-content\/uploads\/2015\/03\/bank-300x254.jpg",300,254,true],"medium_large":["https:\/\/www.propertyempire.com.my\/blog\/wp-content\/uploads\/2015\/03\/bank.jpg",768,650,false],"large":["https:\/\/www.propertyempire.com.my\/blog\/wp-content\/uploads\/2015\/03\/bank-1030x872.jpg",1030,872,true],"1536x1536":["https:\/\/www.propertyempire.com.my\/blog\/wp-content\/uploads\/2015\/03\/bank.jpg",1400,1185,false],"2048x2048":["https:\/\/www.propertyempire.com.my\/blog\/wp-content\/uploads\/2015\/03\/bank.jpg",1400,1185,false]},"uagb_author_info":{"display_name":"Admin Property Empire","author_link":"https:\/\/www.propertyempire.com.my\/blog\/author\/admin-2\/"},"uagb_comment_info":0,"uagb_excerpt":"KUALA LUMPUR (March 3): Despite economic headwinds, both Malaysian banks and property developers are resilient to possible shifts in sentiment and falling property prices, according to Moody‘s Investors Service. In a statement Tuesday, a Moody\u2019s senior vice president Stephen Schwartz said that after several years of rapid gains in residential property prices, macroeconomic conditions in…","_links":{"self":[{"href":"https:\/\/www.propertyempire.com.my\/blog\/wp-json\/wp\/v2\/posts\/3623"}],"collection":[{"href":"https:\/\/www.propertyempire.com.my\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.propertyempire.com.my\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.propertyempire.com.my\/blog\/wp-json\/wp\/v2\/users\/17"}],"replies":[{"embeddable":true,"href":"https:\/\/www.propertyempire.com.my\/blog\/wp-json\/wp\/v2\/comments?post=3623"}],"version-history":[{"count":1,"href":"https:\/\/www.propertyempire.com.my\/blog\/wp-json\/wp\/v2\/posts\/3623\/revisions"}],"predecessor-version":[{"id":3624,"href":"https:\/\/www.propertyempire.com.my\/blog\/wp-json\/wp\/v2\/posts\/3623\/revisions\/3624"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.propertyempire.com.my\/blog\/wp-json\/wp\/v2\/media\/3582"}],"wp:attachment":[{"href":"https:\/\/www.propertyempire.com.my\/blog\/wp-json\/wp\/v2\/media?parent=3623"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.propertyempire.com.my\/blog\/wp-json\/wp\/v2\/categories?post=3623"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.propertyempire.com.my\/blog\/wp-json\/wp\/v2\/tags?post=3623"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}