Malaysia: 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).
According to BERNAMA News Agency, the investment bank highlighted that the Johor-Singapore Special Economic Zone (JS-SEZ) is poised to boost industrial demand in Johor, benefiting companies like IOI Properties Group Bhd. It is also expected to support residential growth for Sunway Bhd, IOI Properties, and UEM Sunrise Bhd. The upcoming Johor Bahru-Singapore Rapid Transit System (RTS) is anticipated to uplift residential demand near the station, benefiting Sunway and Mah Sing Group Bhd, while also boosting retail spending from Singaporeans, which will support new retail malls by Sunway.
In Negeri Sembilan, the industrial segment is gaining momentum, positioning itself as a cost-competitive alternative to Selangor. Companies such as Matrix Concepts Holdings Bhd and Sime Darby Property Bhd are well-placed to capture this demand. HLIB noted that Matrix is already experiencing robust uptake for new industrial launches in its Malaysia Vision Valley (MVV) township.
Furthermore, the office sector is showing signs of recovery, benefiting landlords like Sunway and IOI Properties. Malaysia's stable political environment also enhances its appeal as a tourism destination compared to peers like Thailand and Indonesia, benefiting hospitality players with strong exposure to hotels, malls, and theme parks, notably IOI Properties and Sunway.
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. The sector has undergone structural transformation in recent years, with new opportunities emerging in industrial, retail, office, and hospitality segments.
HLIB advises investors to 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. HLIB's top picks are IOI Properties, OSK Holdings Bhd, Sunway, and Sime Darby Property.