THE interest in properties is expected to remain strong this year, following higher loan applications recorded in 2024 at RM635 billion.

MIDF Research said in a note loan applications for property purchases increased by 4.9 per cent in 2024, reflecting sustained demand.

The firm attributed this trend to post-pandemic economic recovery and key catalysts such as the Johor-Singapore Special Economic Zone (JS-SEZ) and the Johor Baru-Singapore Rapid Transit System (RTS), which have bolstered property market confidence.

MIDF Research expects property companies to report solid earnings for the fourth quarter of financial year 2024, concluding the year on a positive note. This outlook is supported by stable new sales and progress billings from ongoing projects without the disruption of labour shortage.

MIDF Research anticipated the higher new sales to support earnings growth this year. It also remains optimistic about the domestic property sector in 2025, expecting buying interest to remain strong.

“While most of the developers are set to announce their new sales target soon, we expect new sales momentum to remain stable and marginally stronger this year as the property market in Malaysia remains healthy, with declining property overhang and catalyst from the JS-SEZ, RTS and data centre development,” the firm said.

MIDF Research’s top picks for the sector are Mah Sing Group Bhd and Matrix Concepts Holdings Bhd.

Both have “buy” ratings with target prices of RM2.09 and RM2.60, respectively. “We are positive on Mah Sing as its new sales outlook will be backed by healthy demand for affordable residential projects and its aggressive landbank acquisition.

“We see MVV City in Negri Sembilan to be next growth catalyst of Matrix Concepts as MVV City has total acreage of 964.2ha and sizeable gross development value of RM12 billion.”