CIMB Research bullish on residential property sector
Jul 21, 2011
CIMB Research, bullish on residential property market, has maintained its 'overweight' rating on the property sector.
It has also maintained 'outperform' rating on all developers.
In a report Wednesday, CIMB said investors should continue to accumulate property stocks on weakness.
CIMB said share prices of property stocks had been on downtrend since a weekly magazine reported on the possibility of a change in housing loan calculations from gross to net pay.
"The selldown is excessive as the jitters had even spilled to construction companies with property development exposure," it said.
It said the report has yet to be confirmed and even if the measure were to be implemented, it was likely to be mild as the intention was to curb speculation, not to hammer overall sentiment.
CIMB said there has also been talk of the possibility of the proposal of a higher real property gains tax for commercial property in the 2012 Budget.
It said the weakness in share prices of both property developers and construction companies offered buying opportunities. -Bernama
