Property Weekly Review: 10th – 16th November 2008

November 24, 2008 at 2:51 am Leave a comment

Property Weekly Review: 10th – 16th November 2008

• Property stocks down again.
Property stocks, in general, were down last week. Heaviest loser among property stocks under coverage was Sunway City while YNH Property was the only gainer. Major shareholders of YNH Property continued to up
their stakes in the company.
We have ceased coverage on Berjaya Land, Landmarks and Mah Sing.
• More incentives on the cards?
Property players, through the Real Estate and Housing Developers’ Association (REHDA), are seeking more incentives from the government to boost declining sales. Proposals which have been put forward to the
government include (1) a one-time grant of RM10,000 and full stamp duty exemption to first-time house buyers, (2) allow interest paid on housing loans be offset against personal income in income tax calculation, (3) houses set aside for Bumiputeras be opened up to others if there are no Bumiputera buyers within six months or halfway through the construction period, whichever is earlier, and (4) the authorities to take over the development of low-cost housing.
• UEM Land Holdings to be listed on 18 November
Upon listing on 18 November, UEM Land Holdings will have a market capitalisation of RM1.3bn based on its reference price of RM0.55 per share. Post-listing, UEM Land plans to raise RM1.2bn from the sale of
bonds and shares next year for working capital and to finance acquisitions.
• Maintain UNDERWEIGHT.
Property stocks, in general, were down last week. Heaviest loser among property stocks under coverage was Sunway City while YNH Property was the only gainer. On notable filings by major shareholders last week, Lembaga Tabung Haji added 0.17m shares in YNH Property that brought its stakes up marginally from 5.65 to 5.7% while Employees Provident Fund was a net seller with 0.03m shares sold. Its executive chairman,
Datuk Dr Yu Kuan Chon, continued to support the share price by adding another 3.6m shares to bring his direct interest up from 11.2% to 12.2%. On share buy back, YNH Property and Glomac continued to be active with each buying back 0.30m and 0.14m shares respectively from the market.
We have ceased coverage on Berjaya Land, Landmarks and Mah Sing.

More incentives on the cards?

Property players, through the Real Estate and Housing Developers’ Association (REHDA), are seeking more incentives from the government to boost declining sales. Proposals which have been put forward to the government include:

a one-time grant of RM10,000 and full stamp duty exemption to first-time house buyers; allow interest paid on housing loans be offset against personal income in income tax calculation; houses set aside for Bumiputeras be opened up to others if there are no Bumiputera buyers within six months or halfway through the construction period, whichever is earlier. Currently, developers must set aside up to 30% of available units in a housing scheme for Bumiputeras, and these are offered at 5% to 15% discounts; and,  the authorities to take over the development of low-cost housing.

UEM Land Holdings to be listed on 18 November

UEM Land Holdings will be listed on 18 November. Based on reference price of RM0.55 per share, its market capitalisation will be RM1.3bn. Post-listing, UEM Land plans to raise RM1.2bn from the sale of bonds and shares next year for working capital and to finance acquisitions. It hopes to sell RM840m of Islamic bonds, while the rest will come from selling new shares, managing director Wan Abdullah Wan Ibrahim said. Besides developing its Nusajaya township in Iskandar Malaysia, UEM Land is also negotiating to buy tracts of land
in Kuala Lumpur and Selangor. UEM Land said recently that it will buy 40ha in Cyberjaya to build more than 3,000 superlink and semi-detached houses as well as condominiums. It will pay RM150m, or RM35psf, to Cyberjaya master developer Setia Haruman Sdn Bhd. The project is expected to have gross development value of RM1bn.

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