Property sales
PETALING JAYA: Property developers are set to chart better sales performances in 2021, as market confidence is expected to grow with the commencement of the nationwide vaccine rollout.
TA Securities said in a report that the prolonged low-interest-rate environment, abundant market liquidity and supportive government measures will help spur demand for properties.
“Having said that, we expect better market sentiment along with stronger recovery in economic and business activities, which should contribute to better developers’ sales prospects ahead and eventually translate to stronger earnings, going forward.
“The positive sales momentum in the fourth quarter of 2020 and developers’ ambitious 2021 sales target have further reinforced our bullish view on the sector.”
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KUALA LUMPUR (March 5): Maybank Investment Bank Research (Maybank IB Research) said today the worst is over for the property sector as it believes the sector should continue to be driven by a better economic outlook, historically low interest rate environment and pent-up demand.
Its analyst Wong Wei Sum said in a note that despite the reimposition of Conditional Movement Control Order (CMCO) and Movement Control Order (MCO) in the fourth quarter of 2020 (4Q20) to 1Q21, property sales continued to recover from the impact of the coronavirus pandemic. Judging from the sales momentum in early 2021, most developers expect a better sales outlook in FY21 though it may be coming at the expense of lower margins on lower pricing, she added.
Growing demand: The local property market is seeing a rising interest in data centres as an alternative class of asset. AP
WHILE the pandemic may have dampened an already softening property market, this does not mean that developers aren’t taking measures or incorporating strategies to address the current crisis.
A property sector analyst points out that dealing with the global pandemic has not been easy, but adds that opportunities can be reaped regardless of how bad a situation is.
“Whether times are good or bad, companies owe it to their stakeholders to stay competitive and be ahead of the competition, ” he tells StarBizWeek.