Malaysia’s property sector resilient in 2025, driven by strong demand and key catalysts – MIDF

• On total loan applications, MIDF said data from Bank Negara Malaysia (BNM) showed a 6% year-on-year (y-o-y) increase to RM47.4 billion in December 2024, following a 13.9% y-o-y growth in November.

KUALA LUMPUR (Feb 13): Malaysia’s property sector is expected to remain resilient in 2025, driven by sustained buying interest, a declining property overhang, and key catalysts such as the Johor-Singapore Special Economic Zone (JS-SEZ) and the Johor Bahru-Singapore Rapid Transit System (RTS), said a research house.

In a research note, MIDF Amanah Investment Bank Bhd’s research arm, MIDF Research, said most developers set marginally higher new sales targets last year, which are on track to be met and are expected to support earnings growth this year.

“Property companies are expected to report stable fourth quarter 2024 earnings, driven by steady sales and smooth project progress despite labour shortage concerns, with results due by the end of this month, said a research house.

“While most of the developers are set to announce their new sales target soon, we expect new sales momentum to remain stable and marginally stronger in 2025 as the property market in Malaysia remains healthy with declining property overhang and catalyst from JS-SEZ, RTS, and data centre development,” MIDF said.

On total loan applications, MIDF said data from Bank Negara Malaysia (BNM) showed a 6% year-on-year (y-o-y) increase to RM47.4 billion in December 2024, following a 13.9% y-o-y growth in November.

Buying interest remained strong in 2024, with total loan applications for property purchases reaching RM635 billion, reflecting a 4.9% y-o-y rise after a 5.6% y-o-y growth in 2023.

“Overall, buying property interest was robust in 2023 and 2024 after the reopening of the economy and as catalysts such as JS-SEZ and RTS supported buying interest,” it added.

Meanwhile, approved loans for property purchases surged 32.6% y-o-y to RM23.7 billion in December 2024, up from a 4.6% increase in November, driven by a higher approval ratio of 50% versus 40% in December 2023.

Cumulatively, total approved loans rose to RM283 billion in 2024, an 8.5% y-o-y growth following a 7.3% increase in 2023. The loan approval ratio remained relatively stable at 44% in 2024, indicating improved new property sales and better earnings visibility for developers.

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