Malaysian Property Demand Holds Firm Despite Economic Risks

Malaysian property demand is expected to remain relatively stable despite mounting economic uncertainties, although higher operating costs and cautious consumer sentiment are likely to weigh on the sector’s near-term performance, according to MBSB Research.

In its latest property sector review dated Nov 3, the research house said persistent cost pressures, geopolitical tensions in the Middle East, elevated oil prices and rising bond yields were creating a more challenging operating environment for property developers.

While demand has remained resilient, affordability concerns could increasingly influence purchasing decisions and moderate sales momentum.

property demand

A recovery in property loan applications was recorded in September, with applications rising 12.6% year-on-year after declining 4% in August. On a month-on-month basis, an increase of 6% was registered.

For the first nine months of 2026, total property loan applications rose 2.6% year-on-year to RM502.7 billion, indicating that overall buying interest had remained relatively stable.

Loan approvals also improved, increasing 7.2% year-on-year in September following a 13.3% decline in August. A 7% month-on-month increase was recorded.

However, cumulative loan approvals for the nine-month period remained 0.6% lower at RM211.2 billion, highlighting continued challenges in converting applications into completed property purchases.

On developers’ financial performance, MBSB Research does not anticipate significant surprises in the third-quarter 2026 results, following mixed performances in the preceding quarter.

Higher earnings reported by some developers were partly supported by exceptional gains from land disposals, while margin pressures and operational challenges continued to affect others.

The research house maintained its NEUTRAL recommendation on the property sector, citing limited near-term catalysts.

Matrix Concepts Holdings was retained as its top pick with a BUY recommendation and a target price of RM1.33, while Mah Sing Group was also rated BUY with a target price of RM1.15.

Keywords: Property market, MBSB Research, property developers

Source: MBSB Research, Nov 3, 2026.

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