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- The policy thrust is steering developers towards mass-market and mid-range products, supported by financing incentives including housing guarantees, stamp duty exemptions and tax reliefs for homes priced below RM750,000.
KUALA LUMPUR (Dec 18): Malaysia’s property and real estate investment trust (REIT) sectors are entering a policy-driven upcycle, anchored by the government’s plan to deliver one million affordable homes between 2026 and 2035 under the 13th Malaysia Plan, BIMB Securities Research said.
In its 2026 sector outlook, BIMB maintained an 'overweight' call on both sectors, citing sustained support from housing incentives, a stable interest-rate environment and rising industrial demand.
The policy thrust is steering developers towards mass-market and mid-range products, supported by financing incentives including housing guarantees, stamp duty exemptions and tax reliefs for homes priced below RM750,000.
Industrial and logistics assets are emerging as a key structural growth driver. BIMB highlighted the Johor-Singapore Special Economic Zone (JS-SEZ) and New Industrial Master Plan (NIMP) 2030. Those are the catalysts for rising demand from data centres, advanced manufacturing and modern logistics players, favouring developers and REITs with exposure along these corridors, it said.
BIMB also flagged improving retail fundamentals, supported by a tourism rebound and stronger domestic spending, which has lifted mall occupancy and rental reversions in key urban centres.
Meanwhile, macro conditions remain supportive. Residential mortgage loans expanded 6.1% year-on-year to RM877.9 billion as at October 2025, with faster growth in the RM250,000-RM1 million segments, signalling improving purchasing power.
BIMB expects Bank Negara Malaysia to keep the overnight policy rate (OPR) unchanged at 2.75% through 2026. “[This] should keep financing conditions conducive and encourage more potential first time and upgraders to enter the market,” it added.
The REIT sector is trading at about 0.9 times price-to-book ratio, offering average distribution yields of 5.5% to 6.0%, BIMB said.
BIMB reiterated 'buy' calls on Mah Sing Group Bhd (KL:MAHSING), Sime Darby Property Bhd (KL:SIMEPROP), Lagenda Properties Bhd (KL:LAGENDA) and SkyWorld Development Bhd (KL:SKYWLD).
It prefers Al-Salam REIT (KL:ALSREIT) and Axis REIT (KL:AXREIT) for defensive income and industrial exposure, as the sector navigates a policy-led recovery into 2026.
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