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Tough journey to continue in property sector, says analyst


KUALA LUMPUR (Dec 17): Hong Leong Investment Bank (HLIB) Research expects property developers to continue facing a tough operating environment in 2021, with developers cautiously carrying out launches and offering discounts on their products.
The research house’s analyst Lim Ken Wern said in a note today that with the Home Ownership Campaign (HOC) ending on May 31 next year, developers will need to continue providing goodies in order to attract bookings.
“Our channel check revealed that listed developers are garnering a sales conversion rate of about 50% and that some buyers still struggle to obtain their desired financing from banks,” he said.
Nonetheless, given the low-base impact of 2020, he said 2021 may potentially see improved transaction volumes when the economy recovers from the ongoing Covid-19 pandemic. ....

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