Local property sales are beginning to take a dip after the new guidelines on housing loans took effect on 1 January, according to a senior executive at IGB Corp Bhd.

"The loan guidelines (by Bank Negara Malaysia) have slowed down property purchases... but the impact is still small on our properties," said Teh Boon Ghee, Head of Property Development at IGB Corp Bhd.

At the end of last year, the central bank announced that under the new guidelines, prospective borrowers will be assessed based on their net income, after deducting obligations including Employees Provident Fund (EPF) contributions and statutory tax deductions, rather than based only on the gross income.

"Now it takes a little longer to get loans approved, but most people are able to accept our prices (for the G Residence serviced apartments). Our units are priced around terrace-house prices in the Klang Valley, but (our location is) much closer to the city centre," he said.

Teh also noted that G Residence (pictured) units fetch RM650 psf while units in the vicinity, such as those at the Jalan Ampang and Jalan Ampang Hilir, are priced from RM850 psf to RM1,100 psf. In addition, link houses located in Subang Jaya and Taman Desa are priced from RM550,000 and RM900,000, respectively.

The G Residence units, which opened for booking on 8 December, are now 80 percent sold and are expected to be fully taken up in one to two months. Nestled on a 3.62-acre Jalan Desa Pandan site, the project features two blocks of apartments with 474 units as well as 26 retail units.

Its developer, Opt Ventures Sdn Bhd, is a joint venture between Sin Heap Lee Sdn Bhd and Tan & Tan Developments Bhd, an IGB Corp subsidiary.

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