KUALA LUMPUR, March 7 — MIDF Research has maintained a positive outlook on the property sector as it remains sanguine on property companies going forward.
In a note today, it said buying sentiment on property is expected to remain healthy going forward as the landscape for the property sector is improving.
“New sales for property companies are improving which should translate into better earnings visibility going forward,” it said.
Looking back at 2023, the research house said approved loan for the purchase of property was strong at RM261 billion last year, driven by the higher loan application, while approved loan data in January 2024 remained encouraging as it grew by 40.8 per cent year-on-year and 14.1 per cent month-on-month to RM20.4 billion, driven by the higher loan application.
“The higher approved loan bodes well for new sales outlook for property developers,” it said.
Looking ahead, MIDF Research said property companies were generally more optimistic about the outlook for financial year 2024 (FY2024) by setting higher new sales targets.
“Notably, Sunway Bhd targets to achieve new sales of RM2.6 billion in FY2024 after recording new sales of RM2.4 billion in FY2023. Similarly, Mah Sing Group Bhd is setting higher new sales target of RM2.5 billion and S P Setia Bhd recorded bumper new sales of RM5.1 billion last year due to land sales of RM836 million,” it said.
Other than that, the research house also opined that despite the marginal increase in overhang units in the fourth quarter (4Q) of 2023, the overall declining trend in overhang eased concern on oversupply of property.
“Note that residential overhang of 25,816 units in 4Q 2023 was lower than the 27,746 units in 4Q 2022 and 36,863 units in 4Q 2021,” it said.
— Bernama
