MBSB Research said it expects buying interest in property to remain solid and should support prospects of developers.
PETALING JAYA: Buying interest in property remains resilient and the buying momentum is expected to be sustained in 2026 led by the positive outlook for the sector.
MBSB Research, which is positive on the sector, said it expects buying interest in property to remain solid and should support prospects of developers.
Besides, the slew of corporate exercises by developers, namely the listing of real estate investment trusts (REITs) by IOI Corp Bhd
and S P Setia Bhd are expected to lift sentiment on property stocks.
Total loan applications for the purchase of property were flattish at RM55bil in November 2025 after three consecutive increases from August 2025 to October 2025, indicating buying interest in property remains stable.
Cumulatively, the total approved loan in eleven months 2025 was higher at RM263bil, which is in line with the better property sales of property companies, according to data released by Bank Negara Malaysia.
MBSB Research’s top three picks for the sector are Mah Sing Group Bhd for which it has a “buy” call with a target price (TP) of RM1.54 a share, Matrix Concepts Holdings Bhd (“buy” TP: RM1.65 a share) and UOA Development Bhd (“buy” TP: RM2.01 a share).
MBSB Research said: “We see exciting prospects for Mah Sing, underpinned by the expanding industrial property exposure through the recent joint venture with Kuala Lumpur Kepong Bhd land.
“The new sales outlook will also remain supported by the decent sales of its affordable homes.
“For Matrix Concepts, the stable sales from its Bandar Sri Sendayan are expected to drive earnings in the near term, while the acquisition of Horizon L&L increases its presence in Klang Valley.
“Its upcoming MVV City project remains the key catalyst which should benefit from the booming economic growth in Negri Sembilan.”
For UOA Development, MBSB Research sees the group’s maiden launch of the project in Johor will lift property sales in financial year 2026.
Furthermore, the dividend yield of UOA Development is attractive at 5.3% while its balance sheet is healthy at a net cash position.
The KL Property Index underperformed KLCI in 2025, losing minus 6% against KLCI’s gains of plus 2.3%.
The Property Index is a laggard which has yet to reflect the solid fundamentals of the sector, it said.
Overall performance of property companies was decent in 2025 with good earnings and stable new property sales, it added.
It sees stable new sales prospects going into 2026, as the Johor Baru–Singapore Rapid Transit System and Johor-Singapore Special Economic Zone will remain the catalysts for the sector.
Besides, property companies saw new growth catalysts from industrial properties, which should support the outlook for property companies in the coming years.
It foresees more upside for the KL Property Index to reflect the solid fundamentals of the sector.
