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

Spotlight

Malaysia

Man kidnapped, tortured, and killed following misunderstanding

Malaysia

'I will never forget taxi drivers who backed me in my hardest times' - PM Anwar

Malaysia

Najib fails to secure stay of 15-year jail term, RM11.38b fine in 1MDB case

Malaysia

Ivana Smit’s mother considers Federal Court appeal after RM1.1m award overturned

Education

Schools in Negeri Sembilan, Melaka to reopen tomorrow as haze conditions improve

Malaysia

Zara Qairina inquest: Investigating officer says final findings showed no suspicious circumstances

Malaysia

Man jailed 8½ years for abusing three-year-old boy, forcing the child to eat faeces

World

Pope Leo XIV diagnosed with lung cancer after successful surgery

Malaysia

More than 3,000 Myanmar refugees set for repatriation after Malaysia secures breakthrough

You may be interested

Business

SC expands new co-investment fund in 2027 to unlock growth capital for Malaysian businesses

Business

Oil price surge threatens to raise Malaysia’s cost pressures as ringgit steadies

Business

SC targets stronger board oversight through higher standards for company secretaries

Business

Oil prices rise as Gulf attacks threaten supply recovery