KUALA LUMPUR (Feb 13): Malaysia’s property sector is expected to record marginal growth in buying interest this year, despite a high base in 2025, supported by a sustained positive outlook and steady demand fundamentals, said MBSB Investment Bank (MBSB IB).

In a research note, the investment bank said 2025 loan applications remained sturdy, following a 4.9% loan growth in 2024 and 5.7% in 2023, underscoring the continued recovery and resilient buying interest in properties.

“Data released by Bank Negara Malaysia showed that total loan applications for property purchases grew for the fifth consecutive month in December 2025, rising by 6.9% year-on-year (y-o-y) to RM50.3 billion,” the investment bank said.

December’s loan applications, nonetheless, were weaker by 9% versus November, due to the seasonal effect of the year-end holidays, MBSB IB said.

Cumulatively, the investment bank said total loan applications ended on a stronger note in 2025, with a stable 3.4% growth y-o-y.

As for property stocks, Maybank Investment Bank Bhd said in a separate note that 2026 would be a year of delivery, with investors more selective in their stock picks.

“We recently met 13 funds during the marketing of the property sector. Discussions with investors were largely focused on sector themes, particularly the Johor-Singapore Special Economic Zone and corporate exercises,” Maybank IB said.

It maintained its 'neutral' call on the sector.

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