Property stocks up on expectation of new moves to boost sector

Posted on | April 13, 2007

By BUSINESS TIMES

SHARES of property companies generally closed higher yesterday, ahead of Prime Minister Datuk Seri Abdullah Ahmad Badawi’s expected announcement of new measures for the sector today.

Among the counters, Sime UEP Properties Bhd rose 30 sen, Island & Peninsular Bhd 9 sen, YTL Land & Development Bhd 8 sen, WCT Land Bhd 3 sen and Bandar Raya Developments Bhd 12 sen.

The Property Index increased 0.52 per cent, or 5.28 points, to 1,017.47.

According to a research note by Aseambankers Malaysia Bhd, developers are expecting the Government to shorten the approval time for development plans with various federal and state agencies working together.

“With the approval time cut to around six months (anticipated), property developers would be able to respond immediately to market demand at prevailing economic conditions,” it said.

Developers would also stand to benefit from a reduction in land holding costs as well as increase their development margins, it added.

“We believe the reduction in red tape would be positive for developers over the long run and spell better times for those who are more proactive,” Aseambankers said.

The research house’s top picks in the sector were Sunway City Bhd and WCT Land. It maintained its “hold” calls on S P Setia Bhd and KLCC Property Holdings Bhd.

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