PROPERTY companies are still expected to turn in decent earnings growth this year, and to certain extent in 2010, due to large unbilled sales brought forward from last two years.

"Despite the resiliency as compared to the previous downturn, there is lack of re-rating catalyst for Malaysian property developers in the immediate term," ECM Libra Investment Research said in its weekly review of the property sector today.

It said, however, the key risk now was the declining sales which would hurt earnings in later part of 2010 and beyond.

"Our neutral call on the sector is maintained and we favour stock such as Sunway City now which has more stable property investment earnings as opposed to pure property developer," it said.

Meanwhile, in a separate report, ECM Libra said it was cautiously calling an''underweight'' for the construction sector in view of order book replenishment risk. -- Bernama