Malaysia’s property sector is expected to stay resilient this year despite lingering global economic uncertainties, analysts say.
The optimism is underpinned by the industrial and residential segments, which are expected to drive growth.
While global factors such as the United States’ reciprocal tariff policies and their impact on trade and sentiment has dampened the broader market’s mood, RHB Research said the domestic-centric nature of Malaysia’s property market should cushion the blow.
“US reciprocal tariff policies and the potential impact to its economy and global trade have negatively hit market sentiment, causing forecasts of weaker gross domestic product (GDP) growth in Malaysia. Yet, our property sector is very much domestic-driven,” the research house said in its latest sector update.
RHB Research highlighted that several prominent developers had rolled out major development and data centre-related deals in the first quarter, which could bolster investor confidence.
Among these were Sunway Bhd’s development project near the Bukit Chagar Rapid Transit System (RTS) Station and long-term lease with DB Schenker, UEM Sunrise Bhd’s collaboration with Singapore-based GuocoLand to develop an industrial park in Gerbang Nusajaya in Johor, and Eco World Development Group Bhd’s land disposal to a foreign solar part manufacturer in Senai, Johor, along with a land sale and lease in Selangor for a data centre.
“These very much indicate that Malaysia is still well positioned to capture data centre investments while Iskandar Malaysia continues to be a destination for foreign direct investments under the Johor-Singapore Special Economic Zone,” RHB Research said.
Source: The Star
