“MBSB Investment Bank maintains a positive outlook on Malaysia’s property sector, citing resilient buying interest and steady loan application trends heading into 2026.”
Kuala Lumpur, 15th January 2026, 03.05pm – MBSB Investment Bank Bhd has reiterated its positive stance on the property sector, citing resilient buying interest that continues to support developers’ earnings prospects.
In a research note, the investment bank said total loan applications for property purchases stood at RM55.3 billion in November 2025, largely unchanged from a year earlier, with a marginal year-on-year increase of 0.14%. This followed three consecutive months of growth from August to October, indicating stable underlying demand in the housing market.
On a month-on-month basis, however, loan applications declined by 8.3% in November, reversing the 9.6% increase recorded in October. MBSB Investment attributed the decline to short-term fluctuations rather than a structural slowdown in demand.
For the first eleven months of 2025, cumulative loan applications reached RM605.7 billion, representing a 3.08% year-on-year increase. The bank noted that this places the sector on track to end 2025 positively, following a 4.85% expansion recorded in 2024.
“Overall, buying interest in the property market remains resilient, and we expect momentum to carry into 2026, supported by a favourable sector outlook,” the bank said.
MBSB Investment added that recent corporate initiatives by developers, including the listing of REITs by IOI Corporation and S P Setia, are expected to improve sentiment toward property-related stocks.
Among individual names, the bank highlighted Mah Sing Group, citing growth potential driven by its expanding exposure to industrial properties through a joint venture with KLK Land, alongside consistent sales of affordable residential units.
For Matrix Concepts, stable take-up rates at Bandar Sri Sendayan are expected to underpin near-term earnings, while the acquisition of Horizon L&L enhances its footprint in the Klang Valley.
Meanwhile, UOA Development’s first project launch in Johor is anticipated to support higher property sales in the 2026 financial year.
