A report in the Star Online revealed loan approvals for property purchases declined in the first half of the year, compared to the same period in 2011, according to data from Bank Negara, despite applications for finance increasing by 2.9 per cent.
Paul Khong, CBRE (Malaysia) Sdn Bhd executive director, said the fall in the number of mortgages being offered will have an impact on more than just the buyers in Malaysia's property sector.
Speaking to the publication, he stated: "In order to conclude transactions, residential property sellers may now need to realistically adjust their selling prices as many of the buyers cannot get their loan applications approved."
Earlier this month, the Borneo Post reported on the comments of Michael Yeoh, a specialist in finance, loan and planning at Golden Millennium Consultancy, who told the Property Investment Seminar that potential buyers need to make the effort to understand Malaysia's mortgage market.
He explained it is important for any investor to fully understand the ins and outs of financing a property purchase before buying in the country.