KUALA LUMPUR (July 18): RHB Investment Bank Research (RHB IB) said the stamp duty waiver announced by the government will have minimal impact on the overall property market.

In a note on Monday (July 18), the research house said ongoing market headwinds such as rising inflationary pressure and weakening of the ringgit continue to dampen market sentiment.

“Coupled with expectations of higher interest rates ahead, potential homebuyers may defer their purchase of big-ticket items over the next six months.

“We maintain our 'neutral' call for the sector.

“Top picks: Matrix Concepts Holdings Bhd and IOI Properties Group Bhd,” it said.

RHB IB said Mah Sing Group Bhd, LBS Bina Group Bhd, Matrix Concepts Holdings Bhd and Tambun Indah Land Bhd will benefit from the incentive, as these developers have relatively high exposure (more than 60%) to property products priced below RM500,000.

It said potential benefits to the bigger players may not be that significant, as mid-range products make up a smaller percentage of their overall portfolio.

“Although demand-driven incentive is now reintroduced, cost pressure remains a big concern for developers as building material prices remain at high levels, while labour shortage issues have yet to be resolved.

“Therefore, we foresee potential downside risk to developers’ earnings in the coming quarters,” it said.