Real estate sector on track for healthy year
With most property developers delivering earnings broadly in line with expectations in the recently concluded results season...
MIDF Research, in a note, said that loan applications for property purchases increased by 4.9 per cent in 2024, reflecting sustained demand.
The firm attributed this trend to post-pandemic economic recovery and key catalysts such as the Johor-Singapore Special Economic Zone (JS-SEZ) and the Johor Bahru–Singapore Rapid Transit System (RTS), which have bolstered property market confidence.
MIDF Research expects property companies to report solid earnings in the fourth quarter of 2024, concluding the year on a positive note.
This outlook is supported by stable new sales and progress billing from ongoing projects without disruption of labour shortage.
Meanwhile, most of the developers are setting marginally higher new sales in 2024 while new sales are well on track to meet targets, hence MIDF Research anticipated the higher new sales to support earnings growth in 2025.
MIDF Research remains optimistic about the outlook for the domestic property sector in 2025, expecting buying interest to remain strong.
"While most of the developers are set to announce their new sales target soon, we expect new sales momentum to be remain stable and marginally stronger this year as property market in Malaysia remains healthy with declining property overhang and catalyst from JS-SEZ, RTS and data centre development," the firm said.
MIDF Research's top picks for the sector are Mah Sing Group Bhd and Matrix Concepts Holdings Bhd, both rated as "buy" with target price of RM2.09 and RM2.60, respectively.
"We are positive on Mah Sing as new sales outlook will be backed by healthy demand for affordable residential projects and its aggressive landbank acquisition.
"We see MVV City to be next growth catalyst of Matrix Concepts as MVV City has total acreage of 2,382 acres (964.2 hectares) and sizable gross development value (GDV) of RM12 billion," it said.
