News & Articles MRT2, LRT 3 to boost properties & land banks, says AffinHwang
MRT2, LRT 3 to boost properties & land banks, says AffinHwang
18 May 2015
"KUALA LUMPUR (May 18): AffinHwang Capital Research has maintained its “Neutral”rating on the property sector and said teh RM25 billion Klang Valley Mass Rapid Transit Line 2 (MRT2) and RM9 billion Light Rail Transit Line 3 (LRT 3) would spur the construction sector (Overweight) growth.
In a note today, the research house said narby properties and land banks of the proposed alignment would enjoy spill over effects and price appreciation.
“Maintain Neutral on the property sector.
“The development of both lines will have a long-term positive spill over impact to the property prices within the vicinity and will also benefit developers with land banks close to the new rail lines.
“In the near term, we remain cautious on the property sector as we expect demand to remain subdued in 2015 mainly due to more stringent credit approval.For exposure to the property sector, we like Sunway (Buy; TP: RM3.80) for its integrated real estate model as well as its extensive experience in the construction sector,” it said."
In a note today, the research house said narby properties and land banks of the proposed alignment would enjoy spill over effects and price appreciation.
“Maintain Neutral on the property sector.
“The development of both lines will have a long-term positive spill over impact to the property prices within the vicinity and will also benefit developers with land banks close to the new rail lines.
“In the near term, we remain cautious on the property sector as we expect demand to remain subdued in 2015 mainly due to more stringent credit approval.For exposure to the property sector, we like Sunway (Buy; TP: RM3.80) for its integrated real estate model as well as its extensive experience in the construction sector,” it said."
Source: The Edge Market