THE RECENT rebound in property sector share prices suggests investors are no longer overly concerned about the fallout from the US-Iran conflict.
Earlier in March and April, property counters came under pressure as the market anticipated tighter profit margins.
Unlike many other industries, however, property developers generally have greater flexibility to manage rising costs.
They can adjust project designs, unit layouts, construction materials and pricing strategies to help cushion the impact on profitability.
Even amid broader market challenges, developers continue to push forward with asset monetisation plans. These value-unlocking initiatives, highlighted in the previous quarter, remain a key driver supporting the sector’s outlook.
The three major developers, including SDPR and SP Setia, are collectively listing property assets worth ~MYR13 bil after injecting them into REITs, over the next two years.
The MYR has strengthened, yet rising inflationary pressure in the region remains a push factor to attract travellers from Singapore to spend and/or stay in Iskandar Malaysia, at least over the medium term.
In addition, major landowners such as UEM Sunrise, KSL and Crescendo are good RNAV plays.
Land prices are expected to stay elevated, as recent land sales by ECW and CCDO to data centre (DC) players were still transacted at record highs (within their vicinity).
There is no sign of softening demand. High-end properties in premium areas should sell well, eg Mont’ Kiara, Damansara Heights, KLCC and select spots at Iskandar Malaysia are seeing strong demand, while average selling prices for units at new launches (ParkCity Damansara PJ and Pavilion Damansara) are holding up well.
Developers with exposure in these areas include Eastern & Oriental, ECW, Sunway, Mah Sing, UEMS and LBS Bina.
Real estate remains a good hedge against inflationary pressure. Thanks to the stronger MYR, we expect the interest rate environment to stay conducive, which should benefit property investors and buyers.
Indeed, demand from property investors continue to stay strong, as recent launches by UEMS (Aspira Place shoplots in Iskandar Malaysia), SDPR (REKA shoplots in Elmina), and 77 units of 4-storey shops priced MYR8 mil and upwards in Bandar Puteri by another big developer all had more than 90% take-up rates. —May 11, 2026
Main image: alescoproperty.com
