Tuesday, October 11, 2011
So far this year, everyone I have discussed the economy with, including lawyers, bankers and property agents all say we are heading for a huge price correction next year. Especially in the high end property market. Apparently, most banks are now approving less loans for condos over RM1m citing lack of expatriates in the RM6000 and above rental market.
However, today there was one dissenting voice. It is not banks having less confidence in borrowers or their purchases. Banks have now introduced a new KPI putting all defaulters records under the officers who approved them. Therefore, loan officers have become exceedingly cautious.
What do you think?