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Feb 14, 2020 3 min read

NEW STRAITS TIMES: MHub TRB Ventures targets over RM8bil in property deals this year

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KUALA LUMPUR: TRB Ventures Sdn Bhd is targeting over 50 per cent increase in new property sales to 21,000 units worth over RM8 billion this year via its property marketplace platform, MHub.

Chief executive officer Quek Wee Siong said the company had captured 28,000 bookings and transacted more than 14,000 sales of new property launches, representing 26 per cent of all new launches in the country.

“The sales projection will be driven by our expansion marketplace in Penang, Pahang, Johor and Kuching.

“We have also raised close to RM4 million via equity crowdfunding to expand our team size and market reach,” he said at a press conference after signing a collaborative agreement with NewParadigm Capital Markets here yesterday.

The agreement aims to assist lower-income groups to buy homes, while addressing the issue of financing woes faced by more than 50 per cent of home buyers.

Quek said average property sales under MHub were priced between RM350,00 and RM400,000, mainly high-rise residential units.

“Most of our sales transaction target this year will not just focus on the primary market. We are also venturing into the secondary market and auctions in the second-half of this year by offering better solution like Rent-To-Own (RTO) scheme,” he added.

The company will also collaborate with the national mortgage corporation of Malaysia, Cagamas SRP Bhd to assist first time home buyers to secure up to 110 per cent financing for their purchases.

“Last year, the residential overhang growth has slowed down significantly. We are cautiously optimistic about the property market upside this year,” he said.

Quek said the company was confident that the collaboration with NewParadigm could help at least 40 per cent to 50 per cent of rejected homebuyers overcome the hurdle of securing funding by utilising MHub.

“We are also aware of the acute property overhang in the market worth more than RM30 billion.

“This is a tremendous burden to the government and other stakeholders and thus we believe our intelligent data-driven solutions can also solve some of these pain points,” he said.

NewParadigm managing director Charanjeev Sigh said loan rejection in Malaysia accounted for 60 per cent rate last year.

“Most of the unsuccessful loan applications were due to poor or no credit history. Many of applicants are eligible buyers but they need more time to improve their credit repayment record and grow their income,” he said.

He said the partnership allows both parties to form a special-purpose-vehicle to offer RTO scheme to help buyers who do not qualify for conventional loans.

“This provides home buyers enough time to build their credit repayment record in a few years to qualify them for conventional housing loans,” he said.