Property developers are set to record better earnings in 2021, as the market is anticipated to slowly regain some confidence going into next year.
TA Securities said economic recovery, an accommodative interest-rate environment and friendly measures such as the reintroduction of the Home Ownership Campaign and stimulus packages under the National Economic Recovery Plan (Penjana) will help to spur demand for properties.
“We believe the worst is behind us and recovery is underway. Amid uncertainties, our in-house 2021 gross domestic product (GDP) projection of 6.4% year-on-year is conservative, vis-a-vis the forecasts of the International Monetary Fund, World Bank and Asian Development Bank of 7.8%, 6.7% and 7.0%, respectively.
“From the real estate perspective, we observe that there is a strong link between GDP growth and demand for properties, ” said the research house in a report.
TA Securities noted that housing market activity, represented by total property transacted in value, largely moved in tandem with broader economic activity.
Media Title: The Star
Date: 24 Dec 2020