PETALING JAYA: Malaysia’s property sector is expected to maintain healthy earnings visibility through the rest of 2026, supported by sizeable unbilled sales, active project launches and steady construction progress, says BIMB Research.
However, the research house cautioned that earnings quality and margin performance are becoming increasingly uneven among developers, making stock selection more important.
It said for the recent second quarter of 2026, the property sector results were broadly resilient, with seven of the eight companies under review delivering results that were within or broadly within expectations.
“Performance was supported by healthy property sales, sizeable unbilled sales and continued construction progress across ongoing projects.
“Earnings visibility remains firm, supported by active launches, healthy bookings, stronger project recognition and growing recurring income, particularly from Sime Darby Property Bhd
and IOI Properties Group Bhd,” BIMB Research said in a report.
While margin performance was mixed across the sector, BIMB Research remains positive on the outlook, but is increasingly selective in its stock picks.
“We prefer developers with healthy sales conversion, sizeable unbilled sales, visible construction progress, strategic industrial exposure, manageable gearing and a clearer path towards sustainable margin and cashflow improvement,” it said.
