THE Real Estate & Housing Developers Association (Rehda) Malaysia welcomes Bank Negara’s decision to uplift the restriction on provision of bridging finance for development of residential properties and selected shophouses costing above RM250,000.

Rehda believes that the move to restrict provision of bridging finance had served its purpose, and it was timely that Bank Negara had responded to the call to uplift the restriction.

In a statement yesterday, Rehda president Datuk Eddy Chen said the move would not add to the property overhang, but boost the building and construction sector.

“The resulting multiplying effect is an important factor that contributes to economic growth,” he said, adding that developers would now be able to implement viable housing projects in choice locations, where there is still a niche market.

The development of higher end properties would provide the cross subsidy element to enable developers to perform their social obligations in providing social facilities and the construction of low cost houses.

Rehda believes that he industry and the economy can tolerate and absorb unsold stocks for housing of up to one year’s supply or about 100,000 units without adversely exacerbating the overall property overhang.

According to Rehda, there must be allowance for new housing supply to come onstream for the industry to play its role as an engine of growth for the economy.

The setting up of NAPIC and improved mechanism of collecting data provides an assurance that projects coming on stream would be monitored and managed.