Property Sales To Rebound In H2 2021, Says Kenanga Research

January 7, 2021

Property Sales To Rebound In H2 2021, Says Kenanga Research

Property sales are expected to slow down in the first half of 2021 (H1 2021), before registering a slight rebound in H2 2021, provided the COVID-19 situation improves, according to Kenanga Research.

The research house described the easing of lockdown restrictions as a positive sign since it will bring the economic recovery to the right track. However, it warned of possible setbacks should the COVID-19 situation worsen, reported Bernama.

In view of the sector’s challenging structural fundamentals of oversupply, affordability and policy issue, Kenanga Research maintained its ‘neutral’ call for the sector.

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The property overhang in Malaysia is expected to remain, it said, adding that it may not register any marked improvement unless a meaningful correction in property prices is seen in the near-term.

The research house noted that the property overhang situation is mainly residential and serviced apartments, which comprise 84% of the total overhang. High-rise units, on the other hand, account for 54% of Malaysia’s residential property overhang.

Kenanga expects some developers to slash pricing for some of their product offerings in the near term to achieve their sales targets.

“Affordability will remain a major concern and we believe the government’s move to extend the Home Ownership Campaign and stamp duty exemption until 2025 — although positive — may not be sufficient to spur strong property demand,” it said.

 

Make informed decisions when buying, renting and selling a house in Malaysia with PropertyGuru’s comprehensive list of guides.

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