CIMB Investment Bank Bhd (CIMB Securities) has maintained its NEUTRAL stance on the property sector, with Buy recommendations on Gamuda Bhd (target price RM6.40) and IJM Corp Bhd (RM3.70), and a Hold on SP Setia Bhd (RM1.18), citing mid-to-long term opportunities in the United Kingdom’s build-to-rent (BTR), purpose-built student accommodation (PBSA) and green office segments.
According to CIMB Securities, UK house prices recorded a 0.4% year-on-year decline in September 2025, the first contraction since January 2024, amid market concerns over potential property tax changes. However, moderating inflation and lower financing costs may lend price support in the final quarter of the year.
Despite the broader weakness, the research house highlighted that Gamuda and IJM’s recent moves into BTR schemes, PBSA and green offices positioned them well to capture structural demand trends in the UK market.
The firm noted that in the first half of 2025, the UK attracted an estimated £2.2 billion in BTR investments, while the PBSA segment secured £1.6 billion. IJM is considering incorporating a BTR scheme into its masterplan for The Wheat Quarter, while Gamuda is expanding its PBSA portfolio and evaluating tenders for its third project in Marshgate Lane.
The research house added that London’s city centre office market has also seen renewed demand, with prime rents in the Square Mile reaching a record £104 per square foot in the second quarter of 2025. Gamuda holds a 75% stake in 75 London Wall, while IJM owns 25 Finsbury Circus, where it has secured a 20-year lease with law firm Simmons & Simmons for 62% of the building’s net lettable area.
CIMB Securities further highlighted IJM’s partnership through the Innova joint venture, which provides direct access to several prime sites owned by Network Rail with an estimated gross development value of £7 billion, or RM40 billion. The UK government’s plan to unlock brownfield railway land for 40,000 new homes over the next decade is expected to support long-term opportunities. Innova is currently developing the second phase of the Royal Mint Street project, valued at £245 million, following the completion of its first phase in 2019.
On SP Setia, the research house maintained a Hold rating, citing the Battersea Power Station project’s entry into a new development cycle. While much of the infrastructure expenditure has already been incurred, CIMB Securities would prefer to wait for clearer visibility on pre-sales or investment plans before adopting a more constructive stance.
CIMB Securities concluded that while the broader UK property market faces short-term headwinds, Gamuda’s and IJM’s timely expansion into high-growth asset classes offers investors alternative exposure to structural opportunities in the sector.
