April 29, 2011

CIMB-Another Booming Year for Property


Malaysia is likely to see another record year for property transactions says CIMB Investment Bank Bhd in a  report today (29 April 2011)adding that home price appreciation could accelerate,

The bank maintained its “overweight” rating on the industry and said Mah Sing Holdings Bhd was its top pick,

Meanwhile, CIMB Research is bullish on the performance of the properties sector for 2011 after hitting a record transaction of RM107.44 billion last year.

It said the potential re-rating catalysts for the sector are news-flow on land-banking, strong sales from most developers and accelerating earning growth.

"We remain bullish on the property sector, especially the residential properties, as house prices are likely to trend higher and volumes should scale new highs," it said in a research note today.

CIMB Research said the price direction was determined by major cycles and negative external events such as the Asian and global financial crisis.

It said the cycle was currently in the property sector's favour. - Bernama, Bloomberg