RHB Research has made a “Neutral” call on the Real Estate sector with Matrix Concepts and IOI Properties as its top picks.
It said that ongoing market headwinds such as rising inflationary pressure and weakening of the ringgit continue to dampen market sentiment.
Coupled with the expectation of higher interest rates ahead, potential home buyers may defer their purchase of big-ticket items over the next six months.
Although the recent announcement may help to slightly spur demand, especially for properties priced less RM500,000, the overall impact on the property market would be minimal, in our view.
It said that prevailing concerns on macroeconomic headwinds, including rising inflationary pressure and weakening of the MYR, will deter demand for property over the next six months.
RHB said that coupled with the expectation of higher interest rates ahead, many potential property buyers will likely hold back their purchases over the near term.
It said that it also note that, some of the developers are still offering stamp duty waiver for certain products as a continuation of the HOC in order to stimulate demand.
