Property sales have seen “continuous strong take-up” despite last month’s rise in interest rates, RHB analyst Joshua Ng said in a report today. “This confirms our bullish view on the sector,” he said.
Malaysia’s central bank raised interest rates for the first time in almost four years on March 4 after Southeast Asia’s third-largest economy emerged from its first recession in a decade in the last quarter. The country may expand by between 4.5 per cent and 5.5 per cent this year after shrinking 1.7 per cent in 2009, Bank Negara Malaysia said in its annual report on March 24.
IJM Land, Malaysia’s second-biggest property group by sales, rose 2.1 per cent to RM2.44 at 11:11 a.m. local time, set for its highest close since Oct 23. Mah Sing added 2.6 per cent to RM1.98, while Sunway was unchanged at RM3.33.
SP Setia Bhd, Malaysia’s largest property developer, raised its 2010 financial year sales target by 25 per cent to RM2 billion on March 3 to reflect higher demand for its properties.
The company is “on track” to achieve this, it said in a statement on March 31. Sales reached RM900 million as of March 22, less than five months into its current financial year ending October 31, it said. SP Setia rose 1 per cent to RM4.17 at 11:11 a.m.
“As the economy is back on the recovery path, developers’ confidence is getting stronger,” Ng said in the report. “This can be seen in their aggressive launching and land acquisition plans.”
By Bloomberg
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