AmResearch Overweight on property sector

KUALA LUMPUR: AmResearch maintains Overweight on the property sector and favoured Mah Sing, MRCB, Titijaya Land and E&O Properties for leverage to any recovery in the property sector.

In a note on Monday, the research house said while transaction volumes could remain insipid in the near term, its expects a bottoming of the property market towards the end of the year, as the market remains awash with liquidity.

"We also note of a gradual pick-up in presales activities of late, particularly within the landed segment or condos in strategic/good locations within the Klang Valley," it said.

StarBiz reported that property consultancy firm CH William Talhar, reported over the weekend that the development of Bandar Malaysia will likely be carried out via a consortium of developers. 

CH Williams is the transaction advisor for 1MDB RE Sdn Bhd, which is the master developer for the 486-acre Bandar Malaysia. 

Earlier last week, interested parties were invited to submit expressions of interest (EOI) to participate in the project. The deadline for submission has been set on 10 July. If things go as planned, the entire exercise could be wrapped up by October.

Unlike some other large redevelopment projects such as KWASA Damansara, Bandar Malaysia will not be carved out nor developed via a series of joint ventures. Instead, it will likely involve equity participation in nurturing the overall make-up of Bandar Malaysia. 

"Via a screening process, we reckon that each potential bidder is required to make their own respective assumptions. 

"The indicative land value will be determined on a gross basis, we understand. We believe it is still too early to pre-empt any potential beneficiaries as key details remain unknown at this juncture," it noted.

Likewise, the type of property components that can be absorbed by the market is another key consideration for the bidders to consider, it said.