PETALING JAYA: The upcoming financial reporting season for the third quarter of 2025 (3Q25) is anticipated to see solid performances from property developers, underpinned by strong sales registered during that period.
RHB Investment Bank analyst Loong Kok Wen said property developers tend to perform better in the second half of the year, compared with the preceding half.
“Generally, 3Q and 4Q tend to be stronger periods for developers in terms of sales, so we expect that same trend this year,” she told StarBiz.
Loong said the sales and progress billings tend to pick up in the second half of the year (2H25).
“In 1H25, you had the Chinese New Year festive holidays and Ramadhan months.
“As such, a lot of launches also tend to get postponed or delayed into 2H25.”
Seasoned investor Ian Yoong also expects property developers to report strong earnings in the upcoming 3Q25 financial reporting season.
“Property companies should report robust earnings in 3Q25.
“This is attributed to the strong property sales in 2023 and 2024.
“Property sales of RM196bil (399,008 transactions) in 2023 and RM232bil (420,525 transactions) in 2024 were record-breaking years.
“In terms of year, 2023 was the highest ever recorded in value. This record was broken in 2024.”
Yoong said it is, therefore, not surprising that sales in 1H25 were soft, by comparison.
“The positive news is that the total loan application for the purchase of property grew by 6.9% year-on-year (y-o-y) in August 2025.”
Loong believes that many of the larger property developers are on track to meet their sales targets for the year.
“Sime Darby Property Bhd
always surpasses its targets, while Sunway Bhd should also be solid.”
Yoong, however, is a bit more sceptical.
“It appears that the majority of property companies will struggle to meet their sales targets in 2025 after banner years in 2023 and 2024.”
RHB Research in a recent report said many developers are ramping up their launches from late 2Q onwards.
It added that none of them have revised their new property sales targets so far.
“Based on our observations, the property market in Iskandar Malaysia remains robust, while demand for township properties, mid-range high-rise residential units, commercial shops and industrial properties remain strong.”
The research house noted that new launches at Iskandar Malaysia – for example M Grand Minori (high-rise) by Mah Sing Group Bhd and Eco Botanic 3 (landed) by Eco World Development Group Bhd, have already received overwhelming response during the booking and registration and unit pre-selection stages in August.
“Hence, these projects are expected to contribute to property sales from 4Q25 onwards. Upcoming launches by Sunway (Sunway Majestic – small office, home office apartments) and UOA Development Bhd (high-rise) should continue the demand momentum.
“Elsewhere in the Klang Valley, the landed homes at the Elmina township and SJCC East One (a transit-oriented high-rise development) by Sime Darby Property also saw very encouraging demand.”
In line with historical trends, RHB Research said it also expects construction activities to accelerate after the major festive seasons in 1H25.
“The higher progress billings should then translate into better earnings for developers in 2H25.”
Going into the final quarter of 2025, Loong said the last three months of the year should be the “strongest sales period” for property developers.
“It’s a period where many will want to close sales and meet their targets,” she said.
Yoong, meanwhile, said earnings for property companies in 4Q25 will most likely register a y-o-y growth of 10% to 15%.
“This is attributed to the strong sales in the two preceding years. On the plus side is that listed property companies are trading at an attractive price-to-book of 0.7 times.”
RHB Research said investor appetite for undervalued property stocks with specific share price catalysts remains strong.
“After KSL Holdings Bhd changed its investor relations approach, we were amongst the earliest to meet with its management team.
“Given the company’s wide presence in the Iskandar Malaysia market and its attractive valuations, the stock has seen a recent strong re-rating.”
RHB Research said this suggested that investors are still positive on the sector.
This is especially on counters with strategic exposure to Iskandar Malaysia, which can benefit from the Johor-Singapore Special Economic Zone incentives and Singapore dollar-driven retail spending.
“Meanwhile, among all the developers, Sunway seems to be the busiest over the last few months.
“Apart from formally announcing its initial public offering structure for Sunway Healthcare Holdings, the company also made a bold move in Singapore.”
Together with its joint venture partner, Sunway acquired two parcels of adjacent land at Chuan Grove worth S$1.33bil in total.
Sunway also acquired MCL Land from Hongkong Land at a price tag of S$740mil, taking over five development projects in Singapore, as well as two developments and a retail property in Malaysia.
RHB Research did, however, point out that the positive sentiment has been temporarily interrupted since early October.
“While concerns over potential tightening measures being imposed prior to the announcement of Budget 2026 proved unfounded, the dissolution of the Sabah state assembly and the United States’ extreme trade policies imposed on China have not helped matters,” it said.
The research house added that property stocks have seen some profit taking over the last few weeks.
