PETALING JAYA: The local property sector is expected to regain momentum in the second half of 2025 (2H25) driven by falling interest rates, resilient mass-market demand and foreign direct investment-led activity in industrial and transit-oriented developments, says UOB Kay Hian (UOBKH) Research.
In a recent note, the research house maintained an “overweight” rating on the sector, projecting a 10.3% year-on-year (y-o-y) growth in revenue and 7.4% earnings growth in 2025. It said the 25-basis-point cut in the overnight policy rate (OPR) would support the earnings outlook.
UOBKH Research estimated that the rate cut could lift developers’ 2026 earnings modestly, with S P Setia Bhd potentially gaining 2%, Sunway Bhd
by 1% and Eco World Development Group Bhd (EcoWorld Malaysia) by 0.5%, based on their respective floating-rate debt exposure of 40% to 60%.
Monthly repayments for floating-rate mortgages could also drop by 3.4% based on a RM500,000 loan, enhancing buyer affordability.
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