According to an authority blog, CIMB Research has rated Malaysia’s property and real estate sector as ‘overweight’, despite the gloomy forecast by industry players after a local magazine wrote about an impending possibility that a new method of calculating housing loans would be implemented soon.

According to Malaysia property site, HomeGuru, most of the properties in the Klang Valley has risen more than 50% in the last 12 months. Locations that have seen the biggest growth include Mont Kiara, Sentul, Bukit Damansara and residential properties in KL city.

However, CIMB commented that the report is unconfirmed, and that even if it was true, the government’s aim was to stop excessive speculation and nothing more. Hence, the impact is expected to be mild. This is not surprising, considering sentiments on the ground are also poor, after the recent run-up in average price per sq ft.

As a result, CIMB has affirmed its ‘outperform’ recommendation on all local developers, advising Malaysian investors to continue buying local property stocks. Personally, I would advise investors to be cautious because it doesn’t make sense that the Bursa is making new historical highs when the Malaysian economy is still fragile. How real estate agents make money? Find out here.