Imbalance in property sector makes banks cautious on loans

In a statement yesterday, ABM said, the banks must engage with borrowers early for alternative repayment arrangements.

PETALING JAYA: In view of the continuing imbalance in the overall property sector, dominated by the office, retail and residential segments, banks will remain cautious when lending to the office space and shopping complex segments, Bank Negara’s Financial Stability Review for the first half of 2018 says.

In the office and shopping complex segments, excess supply has persisted, with vacancy rates deteriorating further in the first quarter of 2018. Office space owners continue to offer rental holidays to attract tenants.