This article first appeared in The Edge Financial Daily, on March 30, 2016.

KUALA LUMPUR: At a time when the property sector is seeing a high rate of rejection by banks for financing applications from buyers, Sunway Property, the property division of Sunway Bhd, has come out with an innovative way to boost sales for its upcoming launches — by offering financial assistance to potential buyers.

Property developers have, in the past two years, been complaining of their buyers’ inability to secure financing after the central bank introduced cooling measures to curb speculation in the property sector, which resulted in slowing sales and stagnating property prices.

Sunway Property’s financial assistance — in the form of a guaranteed loan, a deferred payment scheme and a voluntary exit plan — is part of its “Certainty Campaign” that was launched yesterday.

“For homebuyers who meet the basic criteria, we are happy to assist them by providing a certainty package with a guaranteed loan, thereby giving them a greater sense of comfort to own their dream home,” said Sunway’s managing director of property development division for Malaysia and Singapore, Sarena Cheah.

“Homebuyers can also opt for the deferred payment option with an initial downpayment of as low as 3%. We have also put in place the option for purchasers to terminate their sale and purchase agreement if they lose their employment,” she said during a media briefing yesterday.

Among the group’s upcoming launches this year are Sunway Gandaria (worth RM200 million in gross development value (GDV)) in Bangi, Brook Residences (RM200 million GDV) in Mont Kiara, and the final phase of condominiums for Sunway Geo Residences 3 (RM420 million GDV).

Potential buyers of all three can apply for the financial assistance. The loans will be for a fixed tenure of 15 years, with a fixed interest rate based on a commercial basis.

The offer, which began yesterday, will run until Sept 30. The loan will be provided on the completion date of the property.

“We will be using internal funds from Sunway’s financing arm to fund the issuances. Its’s not going to be something that we provide upfront, it will be upon completion. So we will give you plenty of time to get a loan. This is an alternative; a flexibility we are providing you,” said Sunway Integrated Properties Sdn Bhd marketing and sales general manager Gerard Yuen.

Regarding the target market for the assistance, Cheah said the package would appeal most to homebuyers, but the offering is also open to investors and upgraders on a first come, first-served basis.

Asked on Sunway’s ability to take on the extra gearing from issuing the loans, Cheah said that the group can afford them.

“It is actually very palatable for us overall. The balance sheet of the developer is very important. Today, the group is very comfortable and strong, and we know what to look out for and what we can or cannot do. We have had a financing group in the arm for many years.

“Compared to the total market capitalisation of the group, it’s very affordable for us. Also, we will be charging interest on the loans, so it’s no loss at all,” she added.