Property developers in for better year

TheStar Thu, Dec 24, 2020 10:50am - 5 years View Original

While near-term outlook appears fragile, TA Securities said Malaysian property prices have managed to stay relatively stable. “Our channel checks suggest that while there are some one-off fire sales, generally, sellers are not exiting in a hurry. We believe there are not many motivated sellers in the market, due to low cost of funds and the prospect of capital appreciation when the market recovers.”

PETALING JAYA: Property developers are set to record better earnings in 2021, as the market is anticipated to slowly regain some confidence going into next year.

TA Securities said economic recovery, an accommodative interest-rate environment and friendly measures such as the reintroduction of the Home Ownership Campaign and stimulus packages under the National Economic Recovery Plan (Penjana) will help to spur demand for properties.

“We believe the worst is behind us and recovery is underway. Amid uncertainties, our in-house 2021 gross domestic product (GDP) projection of 6.4% year-on-year is conservative, vis-a-vis the forecasts of the International Monetary Fund, World Bank and Asian Development Bank of 7.8%, 6.7% and 7.0%, respectively.

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