Prices of residential units are being inflated in order to entice homebuyers with cashback offers.
“It is not difficult to correct this practice but the authority lacks the will. For a start, make it mandatory for both buyers and sellers to declare the true price of a property. If proven otherwise, impose hefty penalties,” he said. Apart from that, Kong addressed the importance of valuation and data, as they are a guide for the public on the actual value of a property. “It is vital to highlight this matter so we are not misguided by so-called ‘property gurus’ and investment clubs.”“This is a simple mathematical problem. As the issue is widely covered in the news, people know the banks are aware of it, yet developers are still doing it, said Kong.
Kong said when a project is completed, the banks disburse the loan and the borrower gets the cash. For projects still under construction, the homebuyer will get a paper rebate . He said, based on these, and for lending or financing purposes by the banks, over-lending does not come into the picture.
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