Property Sector Update : Still In Hot Flavour - 04/10/2010

♦ Regulatory measures unlikely to be harsh. While we believe the property
sector will be imposed with tighter rules, any new measures are likely to be
moderate as the Government would not want to dampen the whole property sector.
In line with our view, the PM has also recently indicated that new measures are
likely to target at home buyers who own more than two houses. Undoubtedbly the
proposed measures could reduce some speculative acitivies due to lower leverage
ability, we think the overall impact on the property sector would be moderate, as:
(i) Young populations are typically the first or second home owners; and (ii) Buyers
who own more than two homes are generally the affluent group.

Property Sector Update : Still In Hot Flavour - 04/10/2010