MBSB Research noted that approved loans for the purchase of property increased by 8.7% y-o-y in September.
PETALING JAYA: Analysts are maintaining their positive stance on the property sector, as they believe that the upcoming Johor-Singapore Rapid Transit System link, the Johor-Singapore Special Economic Zone and the development of industrial properties in Malaysia will sustain growth within the sector.
MBSB Research in a report to clients noted that data released by Bank Negara Malaysia showed that total loan applications for the purchase of properties recorded a double-digit growth of 12.2% on a year-on-year (y-o-y) basis in September, following an increase of a 6.9% y-o-y in August.
“The double-digit growth in loan applications shows that buying sentiment on property remains resilient.
“That brought total loan application higher to RM490bil (plus 3% y-o-y) in the first nine months of 2025 (9M25),” said MBSB Research.
“On a monthly basis, loan application was weaker by 9.6%, which we opine was due to school holidays and public holidays in September.
“Going forward, we expect loan applications to recover in October, and overall, we maintain our view that buying interest in properties will be stronger in 2025, as the outlook for the property market in Malaysia remains positive with stable house prices in Malaysia.”
The research house said for the upcoming earnings release of property companies, it expects most of the companies to record earnings growth in the third quarter of financial year 2025 (3Q25) as progress billing of ongoing projects remain stable while earnings recognition from higher sales achieved in 2024 should support earnings growth.
MBSB Research also noted that most of the property companies under its coverage recorded higher sales in the last financial year, which should underpin earnings growth in financial year 2025.
“Meanwhile, we expect earnings momentum to be sustained in 3Q25 following a decent 2Q25.
“Recall that earnings growth of property companies was largely positive in 2Q25 as five out of the seven property companies under our coverage, namely Matrix Concepts Holdings Bhd
, UOA Development Bhd, Eco World Development Group Bhd, Mah Sing Group Bhd and Sunway Bhd registered earnings growth ranging from 4% to 49%,” it added.
“The earnings growth was largely driven by the acceleration of progress billing of property projects and cost savings.”
Meanwhile, most of the developers are targeting higher sales in 2025, as market conditions are favourable with stable demand for property, according to the research house.
“Hence, we see a better earnings outlook for developers from this year onwards.”
It also said that with the overnight policy rate being maintained at 2.75%, buying interest in properties is expected to remain supported.
MBSB Research noted that approved loans for the purchase of property increased by 8.7% y-o-y in September, snapping three consecutive declines in June to August.
Additionally, the research house said that the increase in approved loans was mainly due to higher loan applications, which cushioned the marginally lower loan approval ratio.
On a monthly basis, it noted that approved loans declined by 13.6% on a monthly basis, owing to lower loan applications and a lower loan approval ratio.
“Cumulatively, approved loans were flattish at RM212.6bil in 9M25 while the loan approval ratio was marginally lower at 43% in 9M25 against 45% in 9M24,” it added.
