Malaysia’s Property Outlook Remains Constructive In 2H 2025, Says HLIB

KUALA LUMPUR, Sept 18 (Bernama) -- Malaysia’s property outlook for the second half of 2025 (2H 2025) remains constructive, with ample opportunities across multiple segments, according to Hong Leong Investment Bank Bhd (HLIB).

In a note today, the investment bank said the Johor-Singapore Special Economic Zone (JS-SEZ) is expected to spur industrial demand in Johor, benefiting IOI Properties Group Bhd, while also supporting residential growth for Sunway Bhd, IOI Properties and UEM Sunrise Bhd.

“The upcoming Johor Bahru–Singapore Rapid Transit System (RTS) commencement should further uplift residential demand near the station, benefiting Sunway and Mah Sing Group Bhd, while also boosting retail spending from Singaporeans, which will support upcoming retail malls by Sunway.

“In Negeri 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,” it said.

HLIB noted that Matrix is already seeing robust uptake for new industrial launches in its Malaysia Vision Valley (MVV) township.

Additionally, the office sector is also showing signs of recovery, benefiting landlords such as Sunway and IOI Properties.

Meanwhile, Malaysia’s stable political environment enhances its appeal as a tourism destination relative to peers such as Thailand and Indonesia, benefiting hospitality players with strong exposure to hotels, malls and theme parks, notably IOI Properties and Sunway.

Thus, HLIB maintained its ‘overweight’ rating on the property sector, citing a multi-year upcycle driven by rising household incomes, policy tailwinds and Malaysia’s transition toward a high-value economy.

HLIB said the sector has undergone a structural transformation in recent years, with new opportunities emerging in industrial, retail, office and hospitality segments.

"As such, investors should view the sector through a broader lens – beyond just residential demand – to capture these new growth avenues. This diversification provides developers with multiple growth pillars and new revenue streams,  strengthening earnings visibility and reducing reliance on any single segment.

“Our top picks are IOI Properties, OSK Holdings Bhd, Sunway and Sime Darby Property,” it added.

-- BERNAMA