RESIDENTIAL PROPERTY MARKET TO FLOURISH IN 2010, SAYS INVESTMENT BANK

KUALA LUMPUR, Feb 2 (Bernama) -- The residential property market is expected
to thrive this year as it rides on the surge in demand, particularly in the
medium-high segment, says MIDF Amanah Investment Bank Bhd.

It said that though new property launches in key cities like Kuala Lumpur,
Johor Baharu and Penang were less encouraging, the expected stronger economy
this year should see the launches of previously delayed projects.

"Our survey with key developers shows purchasing interest remained high
with take-up rates of new projects at an average of 70 per cent just from
private previews or first few days of the launch," it said in its research note.

Despite signs of sectoral revival, it said the property sector still lacked
foreign participation to drive its marketability.

More measures are needed to secure foreign participation apart from the
present tax incentives and MSC-status benefits, said the investment bank.

As for property sector, MIDF Amanah Investment Bank maintained neutral as
it
expects property sales to undergo a minor correction when Central Bank of
Malaysia
begins to tighten monetary policy and foreign funds start withdrawing should the
economic recovery lose its momentum.

"However, we believe local investors will cushion the downside as property
buyers will seize any buying opportunity. We continue to favour counters with
exposure to the mid-to-high-end residential market and industrial
developments," said the investment bank.

It said medium and high-end properties benefited from an economic
recovery
as consumer purchasing power increased, participation in small-and medium-scale
property sector also increased from business expansion.

Residential sector remained a favourite for hedging purposes, it added.

-- BERNAMA