Malaysia’s real estate sector continues to demonstrate resilience despite global economic uncertainties, with recent data suggesting sustained buyer interest. MIDF Research highlights a 15.3% monthly surge in property loan applications to RM54.6 billion in March 2025, building on February’s 6.1% growth, signaling robust market fundamentals. The quarterly figures reveal a 2.4% annual increase in loan applications, totaling RM146.6 billion for the first quarter of 2025.
Market volatility emerged in April following international trade policy announcements, with the KL Property Index dropping 3.2% despite broader market gains. However, analysts suggest this reflects temporary investor caution rather than structural weakness. The research firm attributes January’s softer performance to seasonal factors like school breaks and festive holidays, anticipating normalization as new developments enter the market.
Johor’s property market appears particularly well-positioned for growth, benefiting from major infrastructure projects linking Malaysia and Singapore. The Johor-Singapore Special Economic Zone and Rapid Transit System continue attracting developer interest, with several firms expanding their presence in the region. This strategic positioning helps insulate certain segments from broader economic headwinds.
Looking ahead, MIDF maintains an optimistic outlook for property developers, expecting strong quarterly results driven by last year’s solid sales performance. Their recommended buys include Mah Sing Group, Eco World Development, and UOA Development, with price targets reflecting confidence in these firms’ growth potential. The research house’s positive stance suggests underlying confidence in the sector’s ability to weather current challenges.