Higher rates may hurt real estate sector

RHB Research's top picks are Matrix Concepts Bhd and IOI Properties Group Bhd. It has a “buy’’ call on both stocks and a target price of RM2.66 and RM1.38, respectively.

PETALING JAYA: Higher interest rates are likely to dampen the demand for property but the extent of this will depend on the strength of economic growth.

Based on historical data since 1991, transaction volume typically falls when the average lending rate is revised up, and vice versa.