PETALING JAYA: The recently concluded corporate results season saw local property developers reporting mixed but generally stable earnings, reflecting varied operational performances across the sector.
Nevertheless, industry experts and observers believe that most developers are already off to a good start to achieve their year-end sales targets.
An analyst said that overall, most large developers recorded year-on-year (y-o-y) profit growth, with sentiment supported by stronger project billings, steady industrial property demand and continued monetisation of investment assets such as data centres and recurring-income properties.
“However, the traditional residential property cycle remained relatively stable rather than strongly expanding, with affordability constraints and uneven demand continuing to weigh on mass-market segments,” he told StarBiz.
He said IOI Properties Group Bhd
(IOIPG) stood out with very strong headline earnings growth, driven significantly by valuation gains and re-measurement effects, alongside steady contributions from its development and recurring income assets across Malaysia, Singapore, and China.
For its third quarter ended March 31, 2026 (3Q26), IOIPG saw net profit jump more than threefold y-o-y to RM258.1mil, while revenue surged 38.7% to RM1.05bil.
In a bourse filing, the group said the increase in revenue and profit in 3Q26 was primarily attributable to the consolidation of Scottsdale Properties Pte Ltd following the acquisition of the remaining 50.1% equity interest last year.
This was also supported by higher contributions from the group’s property development segment, arising from the recognition of the sale of land in Melaka, and from the property investment segment due to higher occupancy at IOI Central Boulevard Tower.
For the nine months ended March 31, 2026 (9M26), the factors above contributed to a 6.8-fold y-o-y increase in the bottom line to RM1.63bil, while turnover also rose 40.7% to RM3.06bil.
CGS International (CGSI) Research said IOIPG’s solid performance was driven by higher-than-expected profit margins from its Melaka land sale.
“Recall that the Melaka land sale, secured in financial year 2024 (FY24), came with RM130mil revenue and RM119mil in earnings before interest (with a 90% margin versus our earlier projection of 70%).
“Moreover, higher earnings from IOI Central Boulevard Towers and consolidated South Beach contributions also anchored the y-o-y growth in 3Q26 core net profit.”
Excluding land sales, CGSI Research said IOIPG recorded 9M26 property sales of RM1.4bil, representing 20% y-o-y growth.
“We believe the group is on track to meet its FY26 Malaysian sales target of RM2bil, driven by a healthy launch pipeline.
“Management also highlighted the potential for additional sizeable land sales from its ongoing industrial parks in Banting, Kulai and Melaka, which could further unlock landbank value.”
Separately, Sunway Bhd also delivered a sharp rise in overall group earnings.
However, this was mainly due to a net gain arising from the re-measurement of its investment in Sunway Healthcare Holdings Bhd (SHH) to fair value upon its listing and reclassification as a subsidiary. This gain amounted to RM9.1bil.
Excluding the SHH net gain, the group’s underlying profit before tax would have amounted to RM462.4mil, reflecting an approximate 52.1% increase compared with the same quarter a year earlier.
RHB Investment Bank said Sunway’s 1Q26 property sales stood at RM1.4bil, compared to RM700mil in 4Q25.
“Sales during the quarter were mainly driven by projects in Singapore (RM987mil), Cochrane (RM119mil), Serene 2 (RM96mil) and Velocity 3 (RM83mil).”
The research house noted that Pinery Residence in Tampines, Singapore, was launched in March, adding that its latest take-up rate had hit 93%.
“Management will likely ramp up launches in the coming months and these include semi-detached houses and serviced apartments in Iskandar Puteri, as well as RTS Tower 3 in Johor Baru.”
Underpinned by the group’s solid orderbook and unbilled sales, it remains optimistic on Sunway’s earnings outlook.
“We maintain our FY26 to FY28 earnings forecasts. Unbilled sales and outstanding construction order book stood at RM9bil and RM8.16bil, respectively, versus RM9.5bil and RM5.67bil in 4Q25.”
MBSB Research said Sunway’s 1Q26 property sales of RM1.4bil made up 33% of its FY26 sales target of RM4.2bil.
“New sales in 1Q26 were mainly contributed by projects in Singapore, which makes up 70% of total new sales. Meanwhile, unbilled sales declined to RM9bil in 1Q26 from RM9.5bil in 4Q25,” it said.
Meanwhile, an analyst observed that Sime Darby Property Bhd posted strong profit growth in the latest financial reporting season, supported by steady sales, ongoing township developments and industrial property demand.
“Its performance was also underpinned by a healthy unbilled sales pipeline, which provides earnings visibility for upcoming quarters, making it one of the more consistent operational performers in the sector,” he said.
Sime Darby Property posted a higher net profit of RM158.78mil in 1Q26, compared to RM118.41mil a year ago.
CIMB Research said the company achieved new property sales of RM919mil in 1Q26, representing 23% of the group’s full-year target of RM4bil.
“Sime Darby Property’s industrial property segment was the key driver, accounting for 53% of total 1Q26 new property sales, although the group expects a more balanced mix for the remainder of FY26 as new high-rise and commercial projects are launched.
“After launching RM563mil worth of new properties in 1Q26, the company is set to launch a further RM4.1bil worth of properties over the remaining three quarters of FY26.” This, the research house said, includes its maiden launch in Melbourne, Australia, with an estimated gross development value of RM900mil.
It said Sime Darby Property’s diversified product portfolio and healthy balance sheet (net gearing of 37% as at March 31, 2026) positions the group well to navigate the challenging operating environment.
An analyst said Mah Sing Group Bhd delivered more modest results, with slight profit growth despite softer revenue.
“Its performance was shaped by its focus on affordable and mid-market housing, where demand remains constrained by affordability and financing conditions.
“Nevertheless, it maintained a strong sales pipeline and relatively stable margins, reflecting disciplined execution rather than strong market expansion.”
Mah Sing’s net profit rose 3% to RM68.08mil in 1Q26 from RM66.04mil in the previous corresponding period, while revenue stood at RM563.1mil compared with RM649.69mil a year earlier.
In a statement, the group said it secured RM978mil in new property sales in the first five months of 2026.
“This strong momentum positions the group well to pursue its full-year sales target of RM2.76bil, supported by sustained domestic demand, particularly in the affordable and mid-market segments, alongside a well-timed pipeline of property launches.”
Meanwhile, Lagenda Properties Bhd saw its 1Q26 net profit dip to RM44.17mil from RM44.59mil in the previous corresponding quarter, while revenue slipped to RM262.12mil from RM264.4mil a year ago.
Lagenda said the revenue decline was mainly due to lower contributions from the property development segment.
The company recorded property sales of RM372.5mil in 1Q26, led by encouraging demand for developments including La’ Lumiere in Kulai (Johor), Lagenda Ardea in Ulu Bernam (Selangor) and La’ Indera in Kuantan (Pahang).
As at March 31, 2026, the group’s unbilled sales stood at a record high of RM1.67bil, providing strong earnings visibility for the coming quarters.
Looking at the overall performance of these players for the quarter ended March 31, an analyst said most larger developers are on track to meet their year-end sales targets, with some even performing slightly ahead of expectations.
“Companies such as Sime Darby Property and Sunway have maintained their sales guidance and continue to see sufficient demand to support those targets.
“IOIPG has also reported strong performance that supports its full-year outlook, suggesting it is not facing major shortfalls at this stage.”
For smaller and mid-cap developers, an industry observer said “the picture is less uniform.”
“Some, like Lagenda, are still expected to achieve their targets due to steady demand in affordable housing and township developments, while others are more dependent on the timing and success of new project launches to build momentum through the year.
“In general, the sector is being supported by ongoing demand in key regions such as the Klang Valley and Johor, along with strong interest in township and industrial developments.”
That said, he noted that the environment is not without challenges.
“Developers are contending with higher construction costs, tighter affordability for buyers and some lingering oversupply in certain property segments, particularly mid- to high-rise condominiums in less prime locations.
“As a result, while sales targets are largely intact, growth is more selective and driven by product mix and location rather than broad-based market strength.”
