Challenging Outlook For Property Sector Over The Next 12 Months - AmInvestment

December 30, 2021

Challenging Outlook For Property Sector Over The Next 12 Months - AmInvestment

AmInvestment Bank Research expects the property sector’s outlook to remain challenging over the next 12 months and thus, it is maintaining its “neutral” view on the sector.

AmInvestment analyst Thong Pak Leng noted that while most developers achieved their new sales target, sales figures were down by around 22% during the first nine months of 2020 from the previous year due to the lacklustre market brought about by the COVID-19 pandemic.

He said developers were more aggressive in clearing unsold units by dangling discount, reported The Edge.

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Looking ahead, Thong expects developers with overseas exposure to perform better in the medium term, particularly in Singapore and China.

AmInvestment also expects to see landbanking activities, particularly in good locations near the Kuala Lumpur city centre, MRT/LRT lines and major expressways.

The affordable segment is also forecasted to perform well, with resilient demand from families and young professionals due to continued urbanisation.

In fact, many developers have been seen shifting their focus from high-end products to affordable products during the last two to three years.

“Due to consumer sentiment still being weak, most developers remain cautious and are still assessing the economic situation before deciding to continue or defer future launches. As current consumer spending is mainly focused on necessities, big-ticket items such as properties will take a back seat,” said Thong.

“On a positive note, the reintroduction of the Home Ownership Campaign and full stamp duty exemptions for both the instrument of transfer and loan agreement for the purchase of property worth up to RM500,000 [a unit] can generate buying interest.”


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