The association said the move would boost homeownership, specifically for those within the middle 40% and below 40% income groups.
“This will allow Malaysians to own the home of their dreams and at the same time increase their purchasing power, should it come into fruition,” Malaysia Reserve quoted Rehda president Fateh Iskandar Mohamed Mansor as saying in a recent statement.
“Given that properties are assets that increase in value, it may translate into an improved economic status for the people, as well as the industry.”
Deputy Prime Minister Ahmad Zahid Hamidi had proposed to reduce the housing loan interest rate last Thursday during a high-level committee meeting on housing issues.
Fateh said getting a loan was the main obstacle currently faced by buyers, especially the younger generation buying a property for the first time.
“More homebuyers would be able to make their dreams a reality if it is addressed correctly.
“The association is committed in promoting homeownership, and we will do our best to ensure that the proposal goes through,” Fateh said.
The average housing loan interest rate in Malaysia stands at about 4.65%.
According to data from Bank Negara Malaysia (BNM), about RM40 billion worth of loans were approved between January and May in 2017 for 152,000 house buyers.
Three quarters of those loans are made out of first-time buyers.
BNM had said that there were 130,690 unsold units at the end of last March, with 83% priced at above RM250,000. Also, 61% of the unsold units are high-rise apartments.
It said that supply-demand imbalances in the property market had increased since 2015. Unsold residential properties are at a decade high, with the majority of unsold units being in the above RM250,000 price category