RHB Research: Penang next thematic property play

Business & Markets 2013
Written by theedgemalaysia.com
Monday, 20 May 2013 15:31
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KUALA LUMPUR (May 20): RHB Research has maintained Overweight
on the property sector and said the opening of the Penang Second
Bridge (PSB) in Sept will have a massive asset value unlocking impact.
In a note Monday, the research house said it believed the Penang state
government was now committed to carry out all the infra road projects,
adding, that this meant the take off of E&O’s Seri Tanjung Pinang 2
(STP2).
“The potential entrance of the big players to the mainland will spark a
re-rating of the Penang developers. The key Penang plays – IJMLD,
E&O and TILB will stand to benefit,” it said.
“Moving forward, we expect the state to kick off all the road projects,
which were already being planned.
“All these are likely to yield a positive impact on the real estate values in
both the island and mainland,” said the research house.
RHB Research said that many developers were now considering
Penang mainland as one of their key landbanking destinations.
The research house said the trend was expected, as the opening of
PSB would result in significant improvement in connectivity between the
southern part of island to Seberang Perai Selatan on the mainland.
“Besides the growing industrial activities, the state government has also
planned to promote the tourism angle, by setting up a Premium Outlet
near the PSB interchange.
“Similar to Iskandar, whereby aggressive landbanking has substantially
driven up land values over the last two years, we expect to see the
same trend on the Penang mainland over the next few years,” it said.