KUALA LUMPUR (April 7): Property developer Mah Sing Group Bhd expects to "directly benefit" from Putrajaya’s newly-launched The First Home Deposit Funding Scheme (MyDeposit), as some 70% of its house buyers are first time home buyers aged below 40.

In a statement lauding the implementation of MyDeposit today, Mah Sing also noted that half of its residential launches this year are priced below RM500,000, which means its potential buyers for these projects will be eligible for the scheme.

“The scheme is a very viable solution for first time homebuyers to start building their asset base and own the roof over their heads, as the eligible ceiling price is RM500,000, with household income capped at RM10,000.

“This will directly benefit Mah Sing as 70% of our housebuyers are first time home buyers aged below 40 years old. Furthermore, 50% of our residential launches in 2016 are priced below RM500,000, making half [of] our potential buyers eligible to apply for the MyDeposit scheme,” said Mah Sing’s group managing director cum group chief executive, Tan Sri Leong Hoy Kum.

The scheme, introduced under Budget 2016 for middle-income earners to purchase properties under the RM500,000 price tag, took off today.

Leong added that some of Mah Sing’s projects that fit under this category are: the Cerrado serviced apartments in Southville City@KL South, which are affordable luxury homes indicatively priced from RM368,000; and the Cendana apartments in M Residence 2 in Rawang, priced at RM170,000, in the central region.

In southern Malaysia, it has the Meridin Sovo in Meridin @Medini, priced from RM401,000; the Meridin Hotel serviced suits from RM460,000; Austin Suites in Austin Perdana from RM455,000, Meridin East (Greenway units from RM419,000 and The Willows from RM455,000).

Leong also reiterated that the group’s call to banks to draw up buyer-friendly finance schemes for this category of buyers, by taking into consideration other earnings such as overtime and allowances.

He also urged Bank Negara Malaysia to extend the payment tenure for this group, instead of a maximum 30-year mortgage.

“Apart from the government’s initiative to offer 100% financing for My First Home Scheme and 110% financing for Pr1ma housing, perhaps the banks could also consider extending 100% loan financing for first time home buyers,” he added.

Leong said if buyers are able to obtain loans, developers will be able to increase the supply of such affordable homes, as development is all about cash flow.

“Currently there is a big supply gap of housing in Malaysia, yet most developers are scaling back on launches, because buyers have difficulty in coming up with the differential sum, and at the same time, they find it difficult to obtain end-financing.

This will further exacerbate the supply-demand gap, which is growing every year,” he said.

As such, Leong urged all stakeholders, including developers, bankers and the government, to “work hand in hand to improve this situation”.

At 3.43pm, Mah Sing was unchanged at RM1.42, valuing it at RM3.42 billion.