A report from the Jamaica Observer. "Real Estate Broker, Anya Levy, is cautioning financial institutions about irresponsible lending. Levy pointed to one mortgage institution, which she did not name, which is offering mortgages of 110 per cent a reckless undertaking in her view as this is overexposing, if not overlending. 'So in essence what you are doing is a combo loan, part secured and the other part unsecured, so when you see something like that dangling in front of you it is a sign of danger,' Levy warned."

"She cautioned about these loans, observing that some people have been grabbing at them and buying real estate for investment in Airbnb properties. She issued a stern warning for mortgage institutions to be responsible in their lending practices and policies to prevent the risk of a real estate bubble arising, given the fact that there is an oversupply of apartments in the country with upwards of 1,000 units being unsold in and around Kingston."

From Mortgage Broker News in Canada. "Is calling Canada’s real estate phenomenon 'a bubble' accurate? 'We saw a [Bloomberg] study come out that had Canada as the second-most recognized real estate bubble on Earth after New Zealand,' said Ron Butler, 'and that’s after home prices in Vancouver have come off as much as 35%. It’s still a massive bubble here.'"

From Citizen TV in Kenya. "Developers in the real estate industry have quelled fears of an impending crash to one of Kenya’s key economic segment even as property prices remain on the decline. 'What we have been experiencing is an oversupply situation and I wouldn’t believe we have the ingredients for a bubble to burst as there would be external factors leading to the burst which we are yet to see,' said Knight Frank Managing Director Ben Woodhams."

The Economic Times in India. "The Worli-Lower Parel stretch in South Central Mumbai, once a vaunted spot for premium realty, has emerged as something of a problem zone for real estate developers, particularly for those building luxury residences. Sales are slow, and some projects now look unlikely to ever be completed. 'It is no longer a liquidity crisis. It is a consumption crisis that will affect all sectors if not managed now and become a solvency crisis' said Gagan Banga, MD, Indiabulls Housing Finance."

The Star Biz on Malaysia. "Banks with large exposure to housing loans may have a problem as a result of the way properties were priced, marketed and sold the last several years, industry sources say. This is particularly so if borrowers default on their housing loans. 'The number of distressed cases are on the rise, but this is not being reported,' a source says. Or it could be under-reported."

"An indication of rising distressed cases is the rising foreclosures. People bought properties in droves over the past 10 years, paying minimal downpayment and some made multiple purchases. Banks disbursed loans based on sales and purchase agreement (SPA) price, instead of the actual house price, less rebates and freebies. Essentially, the conclusion after speaking with developers, property consultants, a bank source and two auctioneers is that the 'chickens have come home to roost.'"

"Sources concur that today’s weak property market must be viewed from 10 years ago when prices began to rise starting 2009/2010. This was the period of easy credit, creative marketing strategies, multiple purchases, and young people entering the market in droves. The purchase of multiple units, prevalent in the years starting 2009/10 was due to developers giving huge rebates, the use of mortgage brokers, investor clubs and the speculative element in society, a source says."

"The market was 'hot' and banks outsourced their services using mortgage brokers, the source says. These mortgage brokers may apply up to six banks for a buyer. When three approve a loan, instead of buying one house which cost RM800,000, the buyer may end up buying three. The 'motivation,' he says, is the cash rebate which sometimes run up to 30pc of the house price.  On the conservative side, the buyer may be offered RM100,000 rebate for a RM800,000 house. Three houses mean RM300,000."

"Assuming a 30pc rebate, that is RM240,000 per house. So the borrower takes a 90pc loan, or RM720,000. The buyer gets a 'cash back' of RM160,000. Buyers rationalise he can use the cash back to pay the car loan or use it for one of the three houses on completion and flip the other two. 'They did not expect the market to turn,' the source says."

"Banks were unaware of multiple loan applications. 'The whole process is to cheat the banks,' the source says. 'This led to banks asking for termination letters from the other banks, when they got wind of it,' the source says. Buyers face financial difficulties when they have to pay full installment, the source says."

"The issue is complicated further with completed unsold units. As at Dec 31, 2018, Malaysia has unsold completed residential units including serviced apartment and small offices home offices totalling 45,027 units, valued at RM29.69bil. There are multiple consequences of using overall headline price in the SPA inclusive of rebates and other freebies, instead of the net house price. It affects the banking sector when the amount disbursed is more than the net house price."

"'When developers initiated such rebates, they did not consider the consequence in a down market. We are in that market today,' the source said. 'They were happy to make high profits during the good years and they assume prices would always be on the uptrend.'"