"Despite the easing of restrictions during the RMCO (recovery movement control order) period, we still expect a window period before launches would take place in order to achieve better take-up — for example, IOIPG (IOI Properties Group Bhd) which carried out its launches in China about two months after the lifting of a lockdown," Lim said.
Lim said Hong Leong's Malaysia property sector top picks are Sunway Bhd and Matrix Concepts Holdings Bhd.
He said Hong Leong has "buy" calls for Sunway and Matrix shares with target prices (TPs) of RM1.95 and RM2.06 respectively.
"For our top picks, we continue to like Sunway (buy, TP: RM1.95) as an underappreciated property-construction conglomerate with mature investment properties, growing trading and quarry division and potential monetisation of healthcare business.
"We also like Matrix (buy, TP: RM2.06) as it rides on the affordable housing theme within its successful townships with cheap land cost and sustained property sales coupled with future potential job flows from its Indonesian venture. Its dividend yield of over 6% remains one of the highest in the sector," he said.