KUALA LUMPUR: News flow on the potential incentives and initiatives of the Johor-Singapore Special Economic Zone and infrastructure developments, as well as foreign and domestic direct investments should buoy investor sentiment on the property sector in the second half of 2024 (2H24).
RHB Research said while property demand may continue to be supported by improving economic growth and catalytic infrastructure developments, investments by data centre (DC) and electrical and electronic (E&E) players could significantly boost demand for industrial development.
The firm thinks the DC investment cycle is only at the initial stage, and it expects much more land transactions to happen.
"Developers with a solid balance sheet may start to look at the viability of this DC-related real estate investment, and players such as Sime Darby Property (SD Property) and Mah Sing may further expand their investments," it said.
Meanwhile, RHB Research noted that the first quarter of 2024 property sales were decent.
It expects sales in 2H24 to come in much stronger as developers ramp up their launches during mid-year.
"Demand for landed homes at township developments and high-rise at strategic locations remain encouraging.
"Lately, we also saw a strong take-up for high-end landed units and luxury condominiums with big floor space.
"Overall, we maintain Overweight on the sector. Our top picks include UEM Sunrise Bhd, SD Property and Mah Sing Group Bhd," it added.