CGS-CIMB Equities Research believes the property sector’s upside is capped by affordability issues, slower gross domestic product (GDP) growth and weaker new property sales.
CGS-CIMB Research said as of 3Q19, total residential property transactions by value rose 2.1% yoy, according to National Property Information Centre (NAPIC) data.
Transaction value for residential units priced between RM150,000 and RM200,000 increased the most by c.13% yoy, followed by residential units priced between RM250,000 and RM300,000, while residential properties priced above RM1mil recorded a 16% yoy decline in transaction value.
“This proves that the demand for the more affordable properties is greater at the moment. Nonetheless, 3Q19 residential transaction value growth was slower vs. 2Q19’s 9.5% yoy,” it said.
