Stock Name: SPSETIA
Company Name: SP SETIA BHD
Research House: HWANGDBS

KUALA LUMPUR: Hwang DBS Vickers Research is maintaining a positive view on Malaysian property sector.

In its research note issued on Wednesday, Sept 22, it'' expect property demand will continue to be supported by positive macro factors, that is the young population, urbanisation, shrinking household size, rising income, inflation hedging, and infrastructure improvements.

Its top pick is SP Setia which it has a Buy call and target price of RM4.80.

On Tuesday, Prime Minister Datuk Seri Najib Razak said Bank Negara may impose a lower loan-to-value (LTV) cap for subsequent purchases after the second property. First and second home buyers will be spared.

Hwang DBS Vickers Research said this was less onerous than expected as there was initial concern that the LTV cap may be imposed across the board, with only first home buyers and mass residential PROPERTIES [] being exempted.

'Impact to the property sector should be insignificant as we believe buyers with more than two properties are not widespread. Banks have been generally stringent on mortgage applicants with multiple properties and high monthly commitment,' it said.