A diversified financial services group, Maybank ATR King Eng expressed that "[w]e maintain our overweight view on the property space," heralding good news for the real estate sector.
Amid new rules and restrictions on credit risk issued by the central bank, the firm sees better value for money in the property sector – thus the "overweight" recommendation, as per industry parlance.
To dispel popular speculation of an impending real estate bubble, Maybank quoted the Governor of Bangko Sentral ng Pilipinas, Amando Tetangco Jr. “There are certain segments in the entire sector where prices or valuations may be rising too fast but overall, if you look at the entire sector, you don’t see any clear evidence of a real estate bubble," Tetangco had stated. Likewise, Tetangco has confirmed that no further measures are to be set in place after the latest revisions to the credit regulation framework.
“This confirms our view that last week’s revised credit risk rules are neutral for the property sector as it introduces no new regulations for property lending,” said Maybank.
Maybank lauded four of the biggest players in the property sector as its top picks: Ayala Land, Inc. (ALI), SM Prime Holdings (SMPH), Megaworld Corp. (MEG), and Filinvest Land Inc. (FLI).
“Share prices of these companies have only slightly recovered after the sell-off with the confusion on REM [real estate mortgage] collateral value and LTV ratio limit. We continue to view this as an opportunity to accumulate,” stated Maybank.