CIMB Research: Property sales to recover in 2H17

CIMB Research: Property sales to recover in 2H17

CIMB Research: Property sales to recover in 2H17

Property sales is expected to remain weak over the next few months due to weak housebuyer sentiment, and then gradually recover in the second half of 2017. 

CIMB Research said sales would recover after the incoming supply peaks in the second half of the year.

The 14% year-to-date rally in the KL Property Index appear to have priced in the potential recovery, it said in a note on Wednesday.

The research house, which maintained its Neutral stance on the sector, said buying opportunities may emerge in 2H17 if property share prices fall in the next few months as a result of the anticipated weak property sales.

“The developers appear to be optimistic about the property market conditions in 2017
relative to those in 2016, judging from their sales targets for this year.

“However, we think property sales could remain weak in the next few months.

“The unexciting wage growth prospects and inflationary pressures could continue to weigh on homebuyer sentiment in the near term, in our view,” it said.

CIMB Research said despite the challenging near-term outlook, it believes new property sales recovery may gain strength in late-2017.

It said the incoming supply of residential property will peak by mid-2017 as many developers have held back their launches since 2015.

“Also, the bulk of the property projects that were launched before 2015 would be completed by the end of this year.

“The peaking of incoming supply could mark the beginning of easing competition between developers and existing homeowners for property sales,” it added.

Source : (By THE STAR)



Contact us:


WhatsApp :
(852) 6124 2966 Alex
(852) 9525 6961 Kathy
(852) 9662 7499 Carol
WeChat ID : luxeglobalhk
Hotline : (852) 52656433

*We are not responsible for nor do we make any warranties or representations as to the timeliness, accuracy, completeness, correctness, reliability or otherwise with respect to such information. We assume no liability or responsibility for any omissions or errors in the content or information of this website. Any reliance upon the materials or information on this Website will be at your own risk and responsibility. Information that we make available on this Website is subject to change from time to time without notice. It is your responsibility to monitor any changes to the material and information contained on this Website.

*Luxe Global (Hong Kong) Limited shall take no responsibility for any error or omission relating to the information in this website.  The website is provide to you on an “As is” and “As available basis”.  Luxe Global (Hong Kong) Limited provides no warranties of any kind, whether express, implied, statutory or otherwise in respect of this website or any information, data, advice, opinion, services or products provided, obtained or generated by or through this website as to be timeliness, security, completeness, accuracy, reliability, non-infringement on third parties or fitness for a particular purpose.  In no event and under no legal or equitable theory, whether in tort, contract, strict liability or otherwise, shall Luxe Global (Hong Kong) Limited be liable for any direct, indirect, special, incidental or consequential damages arising out of any use of the information contained herein, including, without limitation, damages for lost profits, loss of goodwill, loss of data, work stoppage, accuracy of results, or computer failure or malfunction.

*Images are computer generated and for illustrative purpose only.


Related posts

Six reasons for investing in Kuala Lumpur

Six reasons for investing in Kuala Lumpur Six reasons for investing in Kuala Lumpur One of...

Continue reading

10 Reasons to Invest in Malaysia’s Real Estate

10 Reasons to Invest in Malaysia’s Real Estate The value-driven real estate market with...

Continue reading