MBSB Investment Bank Bhd (MBSB Research) and Hong Leong Investment Bank Bhd (HLIB) maintained positive calls on the property sector, with MBSB Research keeping a POSITIVE rating and HLIB maintaining an OVERWEIGHT stance.
MBSB Research highlighted Mah Sing Group, Matrix Concepts and UOA Development as top picks, citing stable loan approvals, steady sales and expanding industrial exposure.
HLIB singled out OSK, IOIPG, Sunway and Matrix, pointing to diversified regional and segment exposure, resilient earnings and catalysts such as the Johor–Singapore RTS, JS-SEZ and Negeri Sembilan’s MVV 2.0.
MBSB Research noted that total property loan applications in November 2025 remained flattish at RM55.3 billion year-on-year, following three consecutive monthly increases, with cumulative 11-month applications at RM605.7 billion, up 3.08% from 2024.
Approved loans grew 8.5% year-on-year to RM23.6 billion, reflecting a higher approval ratio of 42.7%, supporting overall sales growth.
The bank expects buying momentum to continue into 2026, underpinned by urban expansion, industrial property growth and corporate initiatives such as REIT listings by IOI Corporation and S P Setia.
HLIB highlighted strong underlying fundamentals despite a KLPRP Index decline of 6% in 2025. Aggregate 9M25 sales rose 20.9% year-on-year, unbilled sales increased 5.5% quarter-on-quarter and launches grew 10.8% year-on-year, signalling sustained demand.
The research house noted rising construction and compliance costs had weighed on sentiment, but recent policy adjustments, including SST reductions and exemptions, provided partial relief.
Residential recovery in Klang Valley, industrial growth in Johor and Negeri Sembilan and a strengthening tourism sector are expected to support medium-term growth.
Both research houses see property developers poised to capitalise on structural and cyclical tailwinds in 2026, with solid earnings prospects and opportunities across residential, industrial and commercial segments.
