KUALA LUMPUR (Jan 15) — MBSB Investment Bank Bhd has reiterated a positive view on Malaysia’s property sector, citing stable buying interest that is expected to continue supporting developers’ performance heading into 2026.
In its latest sector note, the investment bank highlighted that total loan applications for property purchases stood at RM55.3 billion in November 2025, registering a marginal 0.14% year-on-year increase. While growth has moderated after three consecutive months of gains between August and October, the data suggests that overall demand in the property market remains resilient.
On a month-on-month basis, loan applications declined 8.3% in November, reversing the 9.6% increase recorded in October. MBSB Investment attributed this to short-term fluctuations rather than a structural slowdown in demand.
Looking at the broader picture, cumulative loan applications for the first eleven months of 2025 reached RM605.7 billion, reflecting a 3.08% year-on-year increase. This puts the market on track for another year of positive growth, following a stronger 4.85% expansion in 2024.
According to the bank, buying interest in property continues to show resilience, underpinned by improving sentiment and a more favourable outlook for the sector in 2026.
MBSB Investment also noted that recent corporate developments among major property players are helping to reinforce confidence in the sector. These include the listing of real estate investment trusts (REITs) by developers such as IOI Corporation and SP Setia, which highlight the value of income-generating assets and improve capital recycling.
Such activities are expected to provide positive spillover effects across the broader market, including commercial property in KL and investment-grade office developments in established and emerging business districts.
Among developers, Mah Sing Group was highlighted for its growth prospects, supported by expanding exposure to industrial property through a recent joint venture with KLK Land. This move aligns with sustained demand for industrial land in Selangor, particularly in locations favoured by manufacturers and logistics players. Mah Sing’s consistent sales of affordable housing further support its earnings outlook.
Matrix Concepts is expected to deliver stable near-term performance, driven by steady sales at Bandar Sri Sendayan. Its recent acquisition of Horizon L&L is also seen as a strategic step to strengthen its footprint in the Klang Valley, where demand for integrated townships and supporting commercial uses remains healthy.
Meanwhile, UOA Development is set to benefit from its maiden project launch in Johor, which is anticipated to contribute positively to property sales in FY2026.
The stable demand backdrop highlighted by MBSB Investment continues to support confidence across key property segments. In the Klang Valley, this underpins ongoing interest in office space in Bukit Jalil, commercial property in KL, and high-demand industrial property in the Subang area.
Growth corridors such as Puchong remain attractive for factory developments and industrial-use land, driven by long-term manufacturing and logistics trends.
Overall, with buying interest holding firm and developer strategies increasingly aligned with industrial and income-generating assets, the outlook for Malaysia’s property sector into 2026 remains constructive.
Yao Mu Realty, based in Kuala Lumpur, Malaysia, specializes in industrial real estate for factories and land, delivering professional and efficient solutions.
Posted by Yao Mu Realty Sdn Bhd on 15 Jan 26
Malaysia