Malaysian property, REIT sector expected to remain lacklustre in next 12 months

The Malaysian property and real estate investment trust sector is expected to remain lacklustre in the next 12 months due to the challenging outlook, according to AmInvestment Bank Research .

AmResearch said developers under its coverage. such as SP Setia, MRCB, Ecoworld, Titijaya Land and UEM Sunrise. have a reasonable amount of unbilled sales, hence they will remain profitable in FY20–FY21. Based on its data, the research house found that the net gearing of developers under its coverage is still under control with an average of 36%, while interest coverage remains strong at about 8 times.

Aside from that, the research house said the reintroduction of the home ownership campaign with stamp duty exemption to purchase residential properties priced RM300,000-RM2.5 million and the exemption of real property gain tax for Malaysians on the disposal of residential properties made from June 1, 2020 to December 31, 2021 are positive news for developers, as they will improve the overall sentiment of house buyers and the residential property market in Malaysia.

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