MIDF Amanah Bullish on Malaysia’s Property Market Outlook for 2025
Malaysia’s property market continues to show resilient momentum heading into the second half of 2025, with MIDF Amanah Investment Bank Bhd maintaining a bullish outlook on the sector. In its recent investor note, the bank cited strong buying interest, robust earnings, and a minimal impact from the sales and service tax (SST) as key reasons for sustained optimism.
As consumer sentiment stabilizes and property developers ramp up launches, the market is positioned for steady growth—especially in the residential and industrial segments.
SST Impact on Property Developers Is Limited
MIDF Amanah clarified that the 6% SST expansion is unlikely to derail market momentum, particularly as residential properties remain SST-exempt. This regulatory clarity helps:
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Preserve affordability for homebuyers
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Prevent unexpected margin erosion for developers
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Sustain buyer interest in mass-market housing
For commercial and industrial segments, the SST is expected to have a marginal impact. MIDF notes that demand for industrial assets remains strong, and developers should be able to absorb or pass on costs without major disruptions to earnings.
Strong Loan Demand Supports Market Confidence
Citing data from Bank Negara Malaysia, MIDF Amanah highlighted that total loan applications have increased for three consecutive months on a year-on-year basis—indicating growing demand and improved buyer confidence.
This trend is especially encouraging for:
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Affordable housing launches, where mortgage accessibility is crucial
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Younger, first-time homebuyers, responding to low-entry pricing
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Investors in the RM500k–RM800k bracket, seeking rental and appreciation opportunities
Improved credit appetite is also likely to support new bookings as developers accelerate launches in 2H2025.
Property Developer Earnings On Track
Most public-listed property companies reported earnings in line with expectations in 1Q2025. These were primarily driven by:
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Progress billing of ongoing projects
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Steady sales recognition from completed inventories
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Improved construction progress, supported by stable building material prices and fewer disruptions
MIDF expects a sales rebound in the second half of the year, with developers targeting higher overall sales figures for 2025.
Key Developer Picks for 2025
MIDF Amanah highlighted several top-performing developers that investors should watch closely:
🏗 Mah Sing Group Bhd (Target Price: RM1.37)
Mah Sing continues to focus on affordable residential launches in high-demand areas. The developer’s strategy of pricing homes under RM500,000 makes it highly attractive in a market dominated by first-time buyers and upgraders seeking affordability and convenience.
🏢 Matrix Concepts Holdings Bhd (Target Price: RM2.05)
Matrix maintains a stronghold in Negeri Sembilan, especially in townships like Bandar Sri Sendayan. The company is known for its integrated planning and focus on owner-occupier markets, which ensures steady take-up rates and recurring sales.
🏙 UOA Development Bhd (Target Price: RM1.98)
Backed by profit recognition from Klang Valley projects and stable recurring rental income, UOA stands out for its 5.5% dividend yield and net cash position. The developer’s first venture into the Johor property market adds a new growth dimension, potentially capturing demand from the south’s industrial and commercial boom.
Spotlight on Eco World: Industrial Growth Engine
While not listed among MIDF’s top picks, Eco World was also noted for its growing contributions from industrial development, particularly build-and-lease data center deals. This segment improves earnings visibility, especially in light of increased demand for:
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Data infrastructure
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Smart manufacturing
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Logistics and warehousing solutions
The developer is expected to benefit from the rising importance of digital infrastructure investment and ESG-driven industrial assets.
Demand-Supply Dynamics Are Stabilising
Despite recent concerns around property overhang, MIDF’s analysis suggests that most developers are now better calibrated to demand trends, aided by:
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Smaller, phase-by-phase launches
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Greater use of location analytics to align supply
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Focus on owner-occupier markets over speculative sales
The bank’s outlook reflects a maturing market where value-based products and data-backed planning are becoming the norm.
What It Means for Buyers and Investors
The positive 2025 outlook opens up strategic opportunities across multiple segments of Malaysia’s property market:
✅ For Buyers:
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Stable SST policy supports entry-level affordability
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Growing project launches increase choice and negotiating power
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Low interest rates and stronger loan approvals enhance financing ability
✅ For Investors:
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Residential demand supports rental yield strategies in key townships
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Industrial growth offers long-term capital gains potential
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Listed developers with strong dividend yields offer reliable returns
Conclusion: Bullish Momentum Backed by Fundamentals
MIDF Amanah’s 2025 outlook affirms that Malaysia’s property market is firmly on the path of recovery and realignment. Supported by strong demand, disciplined launches, and clear SST exemptions, the sector is set for healthy performance in the months ahead.
With top developer picks, growing home loan approvals, and rising industrial activity, stakeholders—from homebuyers to institutional investors—have much to look forward to in 2025.
