According to the latest market closing situation, the real estate sector has broken through a new high since April 2022, and has rebounded 23% from the bottom of last year/ trying to break out of the slump cycle since 2018. In particular, after Malaysia ushered in several coups d'état, capital has flowed back to this sector. It seems certain that the worst situation is over
In terms of support, most well-known real estate groups have delivered results in line with expectations in the past few quarters, such as Mahsing, Matrix, Spsetia, Ecoworld, and SimeProp. At the same time, the recovery in net profit also raised the dividend rate for the whole year
In terms of prospects, many large-scale projects have been put on hold after 2018, such as the Malaysia City and Longxin high-speed rail. These projects involve tens of billions of dollars in value, and the impact of the shelving on surrounding real estate development is definitely not small
However, according to the latest analysis report, the Solidarity Government intends to restart pending projects. For example, the Longxin High Speed Rail has reached a preliminary agreement and is currently discussing plans for a second home. Coupled with the Bank of China's help in stopping interest rate hikes, it's all good news that favors real estate development
Since the pandemic, real estate has been one of the areas that has recovered relatively rapidly. The average valuation for the past 5 years has remained below 10. Coupled with the lack of themes in the market and the help of many favorable conditions, the real estate sector has become a safe haven for investors, following the trend to push the sector out of the slump. So whether the rally can continue, I think the 2024 budget will be the biggest key
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