A key catalyst spurring the property market would be the completion of the Johor Baru-Singapore rapid transit system link by end-2026.
PETALING JAYA: Demand for property is expected to stay solid based on third quarter of financial year 2025 (3Q25) sales, amid several catalyst projects and corporate exercises that will help lift sentiment among property stocks, says RHB Research.
It has maintained an “overweight” call on property stocks, with top picks being Sunway Bhd
at a target price (TP) of RM6.08 and Sime Darby Property Bhd (SDP) with a TP of RM2.33.
It noted that this year would be important for Sunway, which would be listing its healthcare division, and for SDP, which would be completing its first data centre.
“The corporate exercises to be undertaken by major developers in 2026 could also be share price catalysts for these companies given value-unlocking and hence the potential “special” dividends that shareholders could receive,” it said.
It added that apart from Sunway, three other developers have plans to list their investment properties, including SDP and S P Setia Bhd.
The research house believes other highlights for 2026 include potential corporate exercises such as real estate investment trust listings as well as mergers and acquisitions.
It added that despite the expanded sales and service tax and targeted fuel subsidy implementation, aggregate property sales for the nine months to September 2025 grew 11.4% year-on-year.
“Developers such as UEM Sunrise Bhd and Sunway have just rolled out their remaining new projects in 4Q25, new phases in Estuari in Johor by UEM, as well as Sunway Cochrane in the Klang Valley and Sunway Majestic in Johor by Sunway.
“We expect sales from some of the successful launches in October to November 2025 to flow to early 2026, given the time taken to convert bookings into contractual sales,” it added.
A key catalyst spurring the property market would be the completion of the Johor Baru-Singapore rapid transit system (RTS) link by end-2026.
It said while many of the catalytic projects have been announced, the visibility from the positive progress and imminent completion could be significant enough to uplift market confidence.
“We believe there will be significantly more news flow and launches banking on the impending completion of the RTS starting from the second half of this year.
“This should continue to boost property sales in 2026,” it said.
It said the easing interest rate environment could be more conducive for developers to acquire more land and investment properties, with Sunway’s Hongkong Land (MCL) Holdings Ltd acquisition being an example.
Among other possible moves, SDP has indicated plans to acquire more industrial properties to strengthen its asset portfolio, while there was speculation of a potential merger between Sunway and IJM Corp Bhd.
It pointed out that going into 2026, the certainty from the US-Malaysia trade pact signed last October would also help clear away lingering concerns for both domestic and foreign companies making investment decisions.
