Property sector to keep thriving in 2025

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KUALA LUMPUR: The property sector is expected to continue its positive momentum in 2025, building on last year’s strong performance, RHB Investment Bank Bhd (RHB Research) said.

The firm said the sector continued to outperform the market in 2024 with the KL Property Index rising by 31.5 per cent following a 34.5 per cent increase in 2023.

“2024 saw a greater involvement of many developers in data centre (DC)-related investments and land transactions, as well as industrial developments.

“Many developers also managed to acquire sizeable land parcels during the year, with the focus shifting more towards Iskandar Malaysia,” it said in a note.

RHB Research said the sector valuations in 2025 will likely be driven by value crystalisation of non-development businesses, especially from recurring income-generating property asset portfolio and businesses such as healthcare.

The firm also expects stronger contributions from the industrial development segment as the Donald Trump 2.0 era begins, along with new catalysts if the Kuala Lumpur-Singapore High Speed Rail (KL-SG HSR) and Penang Special Financial Zone (SFZ) are implemented.

Source: NST Online

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