MIDF Research said most property developers recorded earnings growth in the first half of the year due to stable progress billings.
PETALING JAYA: Strong property demand, coupled with improving sentiment, is helping to drive down the number of unsold properties in the market, with Bank Negara data showing a healthy jump in total loan applications in July 2024 compared with June 2024.
According to Bank Negara data, total loan applications for property jumped 18.9% month-on-month to RM62.8bil in July, with the month’s loan applications being the highest level since 2021.
Year-on-year, loan applications were up 21.2% after growing 4.8% in June and 3.1% in May, bringing total loan applications in the year-to-July to RM370.1bil, growth of 6.1% compared with the same period last year.
“The solid growth in loan applications indicate stronger buying interest for property, which is in line with the better sentiment in the property market in Malaysia,” MIDF Research said in a report.
The research house added that more approved loans signalled improving new sales for property developers.
“On another note, the declining number of unsold properties in Malaysia in the second quarter of 2024 (2Q24), which is at the lowest level since 2018, is supportive to the recovery of the property sector in Malaysia,” the research house said, adding it is maintaining its positive view of the sector,
It said most property developers recorded earnings growth in the first half of the year due to stable progress billings.
“On the other hand, new property sales in 2Q24 were largely on track to meet new sales targets as sales momentum remains stable with stronger buying interest,” the research house said.
The research house’s top picks for the sector are Mah Sing Group Bhd
with a target price of RM1.97 and Matrix Concepts Holdings Bhd with a target price of RM2.22.
