Research firm maintains neutral call on property sector

Research firm maintains neutral call on property sector

KUALA LUMPUR, Sept 3– AffinHwang Capital has maintained a neutral stance on the property sector, against the backdrop of a challenging economic environment and stringent credit approval standards.

However, with strong unbilled sales the sector’s revenues were likely to remain robust, it said.

“We believe developers’ revenues will likely remain encouraging in the second half of this year.

“However, given the current challenging economic environment, stringent credit approval process, as well as, the more affordable product mix, we believe margins would likely remain under pressure,” it said in a note.

The research house expected more expenditure on marketing gimmicks to encourage sales.

AffinHwang also said developers would continue focusing on launching affordable houses and landed properties within an established township.

As for the performance of property stocks on Bursa Malaysia this morning, MK Land was 2.5 sen higher at 34 sen, ECO World and Mah Sing were up two sen each to RM1.33 and RM1.30, respectively, Sunway rose 11 sen to RM3.49, UEM Sunrise added one sen to 85 sen but SP Setia and UOA were flat at RM3.18 and RM1.90, respectively.