KUALA LUMPUR: The property market in the second half of 2025 is projected to offer promising opportunities across different segments, with the Johor-Singapore Special Economic Zone anticipated to fuel industrial demand.
Hong Leong Investment Bank Bhd (HLIB) noted that this will be advantageous for IOI Properties Group Bhd while also driving residential growth for Sunway Bhd, IOI, and UEM Sunrise Bhd.
It said the launch of the Rapid Transit System will further stimulate residential demand around the station areas, benefiting Sunway and Mah Sing Group Bhd, while increased retail spending from Singaporeans is expected to support Sunway’s upcoming retail mall projects.
“In Negri Sembilan, the industrial segment is gaining momentum as the state positions itself as a cost-competitive alternative to Selangor, with Matrix Concepts Holdings Bhd and Sime Darby Property Bhd well-placed to capture demand.
“Matrix is already seeing robust uptake for new industrial launches in its Malaysia Vision Valley township. The office sector is also showing signs of recovery,” it said in a research note.
At the same time, HLIB said Malaysia’s stable political landscape strengthens its attractiveness as a tourism destination compared to regional peers like Thailand and Indonesia, providing a boost to hospitality players with significant exposure to hotels, malls, and theme parks.
HLIB noted that property stocks under its coverage performed largely within expectations during the recently concluded second quarter of calendar year 2025 results season.
Of the eight companies reviewed, six posted results that were in line with forecasts, while two underperformed: IOI Properties, due to the delayed recognition of land sales, and UEM Sunrise, owing to softer-than-expected sales and progress billings.
On the 2026 Budget, HLIB highlighted that the possible revival of the Home Ownership Campaign 3.0 could significantly stimulate housing demand and encourage developers to speed up new launches to take advantage of the scheme.
It added that the Housing and Local Government Ministry has indicated plans for government incentives to support developers adopting the “build-then-sell” model, with more details likely to be announced in the budget.
© New Straits Times Press (M) Bhd
