Property: A Broad-Based Recovery

The property sector staged a strong recovery. The KL Property Index (KLPRP) already saw some positive momentum since early July this year and it had since rose as much as 24% to 852.98pts as of 28 August 2023 (Figure 1), its highest level since October 2021. The KLPRP also outperformed the FBMKLCI index (+5%) to become the best performing sector during the period (Figure 2). The rebound was broad-based with 82 out of the 96 index’s component stocks rose in share price. Growth in July was underpinned by stable interest rate outlook and other sector-specified drivers, including improving mortgage loan approval-to-application ratio and implementation of Foreign Workers Employment Relaxation Plan to ease foreign labour shortage. The launch of New Energy Transformation Roadmap at the end of July offered additional growth impetus.