DATA released by Bank Negara Malaysia shows that total loan application for purchase of property grew for fifth consecutive months in December 2025, increasing by +6.9% year-on-year (yoy) to RM50.3 bil.
Cumulatively, total loan application ended 2025 on a higher note with stable loan application growth of +3.4%yoy.
Loan application in 2025 remains sturdy despite loan growth of +4.9% in 2024 and +5.7% in 2023, underscoring the continuous recovery and resilient buying interest on property.
“Going forward, we expect marginal growth on buying interest in 2026 despite the high base in 2025 as we expect the positive outlook for the sector to support buying interest on property,” said MBSB Research.
Going forward, MBSB sees a stable new sales prospect for developers for 2026 while developers will reveal their new sales target for 2026 in the upcoming results reporting season in February.
For the upcoming results reporting season, MBSB thinks that developers are likely to continue registering decent earnings growth and concluding 2025 on a positive note.
Note that most of the developers under their coverage reported earnings growth in quarter three calendar year 2025 (3QCY25) as earnings were supported by the stronger property sales secured in CY24 and CY25.
The stronger property sales coupled with the stable progress billing should continue to underpin earnings outlook for developers going forward.
Besides, the growing exposure of property companies to industrial property development also helps lift new property sales.
“We see stable new sales prospect going into CY26 as The Johor Bahru–Singapore Rapid Transit System (RTS) and Johor-Singapore Special Economic Zone (JS-SEZ) will remain the catalysts for the sector,” said MBSB.
Besides, the upcoming corporate exercise by developers namely listing of REITS by IOI Corporation and S P Setia as well as listing of Sunway Healthcare Holdings by Sunway Berhad are expected to lift sentiment on property stocks. —Feb 13, 2025
Main image: propertyupdate
