Despite the dip in loan applications to RM49.1 billion in September 2024, MIDF Amanah Investment Bank Bhd (MIDF Research) remained positive on the Malaysian property sector, citing the cumulative loan application growth and the stable loan approval rates as key indicators of a healthy property market.
Additionally, the current low interest rates, with the Overnight Policy Rate maintained at 3%, are expected to sustain buyer sentiment in the property market.
As such, MIDF Research maintained BUY for the sector and recommended Mah Sing Group Bhd and Matrix Concepts Holdings Bhd as its top picks.
Mah Sing's (BUY, target price [TP]: RM2.03) strong sales performance, with RM1.66 billion in new sales in the first eight months of 2024, is on track to meet its RM2.5 billion target for the year. The group's diversification into data centres is expected to bolster its recurring income.
Similarly, Matrix Concepts (BUY, TP: RM2.22) is poised for positive earnings growth, supported by its developments in Bandar Sri Sendayan and the upcoming MVV 2.0 project. The latter is expected to contribute significantly to earnings growth beyond FY27, with groundbreaking scheduled for December 2024.
MIDF Research said the outlook for the industrial property market also looks promising, driven by foreign direct investment inflows and an increase in transaction values.
Companies such as SP Setia Bhd, Eco World Development Group Bhd and Mah Sing, with exposure to the industrial property market, are well-positioned to benefit from this trend.
