Maybank IB maintains 'positive' call on property sector

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KUALA LUMPUR (Jan 8): Maybank Investment Bank Research (Maybank IB) has maintained its “positive” call on the property sector although noting that recovery could still be slow given the huge unsold stocks.

In a research note today, Maybank IB said home sales have probably hit bottom and should improve this year, boosted by the soon-to-be-launched ‘Home Ownership Campaign (HOC)’.

“The concerns on record high unsold stocks in the country and slower gross domestic product (GDP) growth should have been largely priced in with the sector’s rock-bottom valuations,” it said.

Maybank IB added the upcoming official launch of the third HOC in March should help boost property sales for the year.

The HOC, which was first introduced in 1998, is a joint effort between the government and private developers to reduce the record high unsold stocks.