Tighter Loan Approvals, Higher Borrowing Costs To Challenge Property Market In 2027 – JLL Malaysia
KUALA LUMPUR, Nov 10 (Bernama) -- Tighter housing loan approvals and potentially higher borrowing costs are expected to weigh on Malaysia's residential property market in 2027, as banks become more selective in financing property purchases, said JLL Malaysia.
Managing director Jamie Tan said a potential increase in the Overnight Policy Rate (OPR), coupled with more stringent lending practices, could make it more challenging for prospective homebuyers to secure financing, particularly those who rely heavily on housing loans and mortgages.
He said any increase in interest rates could affect both the residential segment and the wider property market, given homebuyers’ reliance on mortgage financing.
“If you look at past trends, whenever interest rates increase, it tends to affect both the residential segment and the overall property market.
“This is because, at the end of the day, homebuyers rely on housing loans and mortgage financing to purchase their homes,” he told a press conference here today.
-- BERNAMA