PETALING JAYA: Most property developers ended 2025 on a strong note, with many achieving or even exceeding their annual sales targets.
Heading into 2026, numerous players have set their sights on even higher sales goals. However, could rising uncertainties stemming from ongoing geopolitical tensions affect these ambitions?
An analyst from a local bank-backed brokerage said he still remains positive on the local property market, in general.
“Can Malaysian property developers achieve their sales targets in 2026? The answer is yes, but not across the board.
“While the overall outlook for Malaysia’s property sector in 2026 is stable, success will depend heavily on each developer’s strategy, product offering and market positioning,” he told StarBiz.
In general, he noted that sales targets set for 2026 are considered “realistic” rather than “overly ambitious”.
“This is especially since many developers carried strong momentum from 2025. This makes it likely that the industry as a whole can meet its collective targets.
“In general, sales targets set for 2026 are considered realistic rather than overly ambitious, especially since many developers carried strong momentum from 2025. This makes it likely that the industry as a whole can meet its collective targets.
“However, performance will be uneven across the sector. Demand is becoming more selective, with buyers focusing on affordability, location and value. As a result, developers that align with these preferences are more likely to succeed,” he said.
He further emphasised that companies focusing on affordable housing, landed properties, industrial developments and projects in high-growth areas are in a stronger position to meet or exceed their targets.
“On the other hand, those concentrating on higher-end or oversupplied segments, or projects in less strategic locations, may struggle.”
Meanwhile, MBSB Research said it expects a marginal negative impact from higher crude oil price on the property sector.
“While generally property companies in Malaysia do not have exposure to the Middle East, we see the geopolitical tension and military conflicts in the region which had caused the spike in oil prices to have a knock-on effect on the property sector.
“The surge in oil prices is expected to increase the cost of living of people and reduce disposable income of people.”
It added this will, in turn, lower affordability of homebuyers and affect buying interest in properties.
“The higher fuel price translates into higher transport cost, which will increase construction cost of developers. Hence, we reckon the property sector may take a minor hit if the high oil price is prolonged.”
Another analyst said broader economic conditions will also play a role.
“Malaysia’s steady economic growth and continued domestic demand support the property market, but challenges such as cost-of-living pressures, financing constraints, and global uncertainties mean buyers remain cautious.
“We believe Malaysian property companies can achieve their 2026 sales targets –but success will be selective. Developers that adapt to current market demand and execute effectively are likely to perform well, while others may fall short.”
A number of property developers surpassed their sales targets in 2025, with several of them setting higher ones for 2026. MBSB noted Sunway Bhd
reported new property sales of RM3.8bil in 2025, ahead of its sales target of RM3.6bil and surpassing its 2024 sales performance of RM3bil in 2024.
“New sales in 2025 were mainly supported by projects in Singapore which made up 56% of total new sales. Sunway has set a higher sales target of RM4.2bil and target launch of RM4.8bil for 2026,” it said.
Additionally, the research house noted S P Setia Bhd achieved RM5.1bil sales in 2025, which was ahead of its sales target of RM4.8bil for the year.
“Property development contributed to 73% of total new sales in 2025, while land sales contributed 27% to total new sales.”
Moreover, MBSB Research said Mah Sing Group Bhd recorded new property sales of RM2.51bil in 2025, but missed its target of RM2.65bil for the year, mainly due to delays in authority approval for projects.
“Mah Sing has set a new sales target of RM2.76bil for 2026, on the back of sales from ongoing projects and new launches worth of RM3.45bil for the year.”
Meanwhile, CLSA, in a report, said despite developers generally guiding for 10% to 15% property sales growth in 2026, recent geopolitical tensions could heighten inflation concerns and potential interest rate hikes, which may weigh on demand for upcoming launches.
“We understand developers are closely monitoring cost trends amid rising construction input costs.
“We prefer developers with a growing base of recurring income which provides earnings stability, alongside visible strategic growth opportunities in the pipeline. Potential real estate investment trust listings remain a key catalyst for unlocking value.”
As many adopt a “wait-and-see” approach for now, one market observer said most companies will tweak and adjust their sales outlook for the year, should global conditions deteriorate.
“Should companies revise their sales targets or earnings forecasts in light of the global economic uncertainties? The short answer is yes – but selectively and strategically, not reflexively.
“In periods of global uncertainty, the question isn’t simply whether to revise earnings forecasts, but how to communicate uncertainty without damaging credibility.”
He said in many cases, revisions are justified. “Earnings forecasts are often optimistic to begin with, and unexpected macroeconomic changes – such as geopolitical tensions, shifts in trade policy, or rising commodity prices – can quickly make earlier assumptions outdated.
“When this happens, updating guidance helps maintain credibility with investors. In fact, during volatile periods, it’s common for companies to lower expectations or even withdraw forecasts entirely if visibility becomes too limited.”
That said, revising forecasts too frequently can create confusion and signal a lack of control, he noted.
“Forecasting is inherently uncertain, and constant changes may appear reactive rather than strategic,” he said.
