New property measures to drive away investors

From Business Times
By RHB Research
29th October 2013

"We see downside potential for valuations of some stocks, particularly those that are highly exposed to the Iskandar region and have high proportion of foreign buyers," 

"They include UEM Sunrise Bhd, Sunway Bhd, SP Setia Bhd, Mah Sing Group Bhd, IJM Land Bhd and Eastern & Oriental Bhd."

NEW property cooling measures, such as raising the ceiling price of properties for foreign buyers to RM1 million, will be a big blow to Johor's Iskandar Malaysia region, says RHB Research.

The research house views that the 30 per cent real property gains tax (RPGT) for foreigners, for disposals within the first five years, will wipe out short-term foreign speculators to a certain extent as the minimum five years' holding period will drive them away.

Hwang DBS retains Quill Capital on Buy, RHB Research says Sell

From Star Online: Business

2nd August 2013

 

KUALA LUMPUR: HwangDBS Research is maintaining its Buy calls on real estate investment trust Quill Capital Trust but is revising its target price to RM1.40 from RM1.45, while RHB Research says it’s time to Sell.

According to HwangDBS Research, QCT’s first-half earnings were well within estimates, noting that the 4.1 sen dividend declared amounted to a 94% payout but said it was cutting earnings estimates for the financial years 2013-2015 by 5-8% because of softer rental reversions and the zero contribution to earnings from their Quill Building 10 in PJ’s Section 13.

The second quarter net profit at RM9mil was 3% lower year-on-year (plus 10% q-o-q) on slightly lower revenue and weaker net property income margin.

“We attribute the lower revenue to vacancy at Quill Building 10 – a result of high office space supply and attraction of newer office buildings (QB10 is now seven years old),” it said.