KUALA LUMPUR (March 5): MIDF Research has maintained its “Neutral” rating on the property sector and said it expects value of new property sales to be lower this year.
“Disappointing 4QCY14 results from property companies with earnings from 60% of the stocks under our coverage came in below expectations.
“Growth in property prices has moderated as reflected by the slowdown in House Price Index (HPI)
“Loan demand for the purchase of properties declined. This is reflected by a -10%yoy slippage in property loan applications in 2014 (first annual contraction in at least 8 years),” it said.
In a note Thursday, the research house said it believed that banks had turned conservative with more stringent criteria on lending.
“This is especially so on loans for purchase of non-residential properties.
“Expect value of new property sales to be lower this year
“Maintain Neutral with Sunway Bhd as our top pick,” it said.
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