As an investor and former property developer, I have not looked at property stocks in the last few years because there were so many unsold properties in every town and cities in Malaysia. Supply exceeds demand for properties. However, I must not forget that property sales depend very much on the locations. For examples, KP Property and KSL constructed properties in good locations.
That is why KP Property and KSL have been reporting good profit in the last 2 years and their share prices are shooting up like Russian missiles.
KP Property: Last traded price is 89 sen and EPS for last 4 quarters is 23.7 sen. It is selling at PE 3.7.
KSL: Last traded price is Rm 1.07 and EPS for last 4 quarters is 31 sen. It is selling at PE 3.5.
These 2 stocks are the cheapest among all property stocks.
Property developers expect home prices to increase in 2023 amid the rising cost of doing business in the country, which climbed by an average of 17% during the first half of 2022. Moreover, all building materials and labours costs have been going up due to inflation.
Meanwhile, MIDF Research noted that loan application statistics for August indicated that demand for real estate continued to be unaffected by the overnight policy rate (OPR) hike.
Property developers expect home prices to increase next year amid the rising cost of doing business in the country, which climbed by an average of 17% during the first half of 2022.
“The majority of developers have offered some clues as to how much more expensive their new launches’ selling prices would be. It is not a low amount,” Real Estate and Housing Developers’ Association (REHDA) Malaysia President Datuk NK Tong told the New Straits Times.
REHDA’s Property Industry survey showed that 82% of the respondents had indicated that their cash flow had been impacted by the rising business cost.
The main cost factors affecting cash flow in 1H 2022 are land costs, labour expenses, compliance costs and longer approval times.
Looking ahead, the respondents expect construction expenses to increase by an average of 18% in 2H 2022 and beyond, which could in turn affect home prices.
Loan application statistics for August indicated that demand for real estate continued to be unaffected by the overnight policy rate (OPR) hike, said MIDF Research.
The firm was referring to Bank Negara Malaysia (BNM) data which showed that the total loan amount applied for the acquisition of real estate grew 4.5% month-on-month to RM53.4 billion in August, reported the New Straits Times.
On an annual basis, the number of property loan applications rose 66.1% due to a lower base impact brought about by the lockdown in August 2021.
The total loan amount approved for the purchase of property climbed 2.4% month-on-month and 93% year-on-year to RM23.3 billion in August.
“Overall, the higher approved loans are in line with our expectation of marginal recovery in new property sales for property developers. We also see a loan for the purchase of property in August 2022 to be in line with our expectation of marginal recovery for the sector,” said MIDF Research.
“Nevertheless, we maintain our ‘neutral’ call on the property sector as residential overhang remains elevated in the second quarter of the calendar year 2022,” it added.
Chart | Stock Name | Last | Change | Volume |
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Created by Koon Yew Yin | Jun 28, 2024
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KYY again , ha ha ha ! U can just skip this article for saving time !
2023-08-30 11:26
He has started the battle hum. Just follow the trend. The party is hot now (just run timely before Ur fingers get burnt)......hehe
2023-08-30 15:59
obviously when KYY started a theme play write-up, he's clearing out his position
2023-09-05 17:26
Home price up but both KSL and kpp drop...
Market like government back property sector like spsetia, UEMS...
2023-09-07 15:52
Uncle Koon,what happen to KPPROP keep dropping eventhough its ROE 13.08 ,P/E less than 4 and earnings 23.5 cents per share ,all are quite attractive but why investors keep dumping down this share
Can uncle KYY explain???
Tq
2023-09-25 13:41
https://focusmalaysia.my/anwar-hammers-from-new-york-over-disappointing-embarrassment-back-home/
when we rakyat tell PMX that our civil service is inefficient, we are ignored
when the white-man tell PMX that our civil service is inefficient, baru dia dengar!
apa ni? the white-man undi PMX become Malaysia PM ke? it is we RAKYAT, LISTEN TO US RAKYAT! not the white-man!
2023-09-26 07:54
Uncle Koon,why your recommendation stock ,such KPPROP keep dropping
Can you pls give some suggestions
2023-10-04 17:06
speakup
Koon which one u buy?
2023-08-30 07:46