Business

MBSB IB maintains positive outlook on property sector amid Johor growth and OPR cut

Investment bank identifies Mah Sing, UOA Development and Matrix Concepts as top picks, citing affordability boost and regional catalysts

Updated 1 year ago · Published on 16 Jul 2025 12:43PM

MBSB IB maintains positive outlook on property sector amid Johor growth and OPR cut
The bank opines that the OPR reduction would enhance property affordability, particularly benefiting first-time buyers - July 16, 2025

MBSB Investment Bank Bhd (MBSB IB) has reiterated a bullish stance on Malaysia’s property sector for the second half of 2025, underpinned by robust buyer sentiment following the recent overnight policy rate (OPR) cut and ongoing developments in Johor.

In a market note released today, the investment bank said: “We maintain our positive stance on the sector, with Mah Sing Group Bhd, UOA Development Bhd and Matrix Concepts Holdings Bhd as our top picks.”

It noted that the OPR reduction would enhance property affordability, particularly benefiting first-time buyers. “We like Mah Sing as its strategy of selling affordable residential property will sustain its new sales growth while the recent OPR cut will increase affordability among buyers.”

Johor developments a key catalyst

MBSB IB identified the Johor-Singapore Special Economic Zone and the Johor Bahru–Singapore Rapid Transit System as key long-term catalysts, expected to lift demand and drive new project launches in southern Malaysia.

UOA Development was highlighted for its strong dividend yield of 5.6 per cent, which compares favourably to the Malaysian Government Securities (MGS) yield of 3.4 per cent and the average real estate investment trust (REIT) yield of 4.4 per cent. “UOA’s recent maiden venture into the Johor property market will support new sales growth in the future,” the report stated.

Matrix Concepts supported by MVV City growth

MBSB IB also pointed to Negeri Sembilan’s Malaysia Vision Valley (MVV) City as a growth driver for Matrix Concepts. “We see a strong catalyst from MVV City to Matrix Concepts, which will provide an earnings catalyst on top of the stable contribution from Bandar Sri Sendayan.”

Matrix’s dividend yield remains among the most attractive in the sector. - July 16, 2025

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