KUALA LUMPUR: Bursa Malaysia's KL Property Index has outperformed the benchmark FBM KLCI in the first half of 2023 with a gain of 7.6 per cent against the latter's loss of 7.9 per cent.
MIDF Research said property counters saw stronger trading interest following pause in overnight policy rate (OPR) hikes by Bank Negara Malaysia in January and March as pause in OPR is expected to support buying interest on properties.
"Besides, we think that the declining residential overhang in thd first quarter of 2023 following reopening of country borders helped support sentiment on property stocks," the firm said in a report today.
The top five performers of property counters in the first half were Ewein Bhd (up 210 per cent), Yong Tai Bhd (up 113 per cent), Seal Incorporated Bhd (up 96 per cent), Tanco Holdings Bhd (up 72 per cent) and Eco World International Bhd
(up 54 per cent).
MIDF Research said loan applications for purchases of property rebounded in May by 23 per cent month-on-month (m-o-m) after a decline of 23 per cent m-o-m in April.
The rebound could be due to higher loan
application following break for festive season in April.
On yearly basis, loan application jumped 18 per cent year-on-year (y-o-y), bringing cumulative loan applications at RM246.5 billion (up 4.3 per cent y-o-y) in the first five months.
"The higher total loan applications indicates better demand for property. Nevertheless, buying interest on property could be dampened slightly as Bank Negara increased OPR by 25 basis points to 3.0 per cent in May 2023," the firm added.