RHB Investment Bank Bhd (RHB Research) has maintained an OVERWEIGHT call on the real estate sector, with top picks Sunway (SWB) and Sime Darby Property (SDPR), citing solid 3Q25 sales and active developer pipelines as key drivers.
The bank highlighted that 9M25 aggregate property sales rose 11.4% year-on-year, while 3Q25 alone surged 40% quarter-on-quarter and 46% year-on-year.
Stripping out overseas contributions, domestic sales still grew 1% year-on-year, signalling resilient demand despite expanded Sales & Service Tax and targeted fuel subsidies.
RHB Research noted that 2026 will be pivotal, with SWB planning the listing of its healthcare division and SDPR completing its maiden data centre facility.
Potential corporate exercises such as REIT listings and mergers and acquisitions could also underpin sector sentiment.
RHB Research reported several key developments could spur market confidence in 2026, including the completion of the Johor Bahru-Singapore Rapid Transit System Link by year-end, Sunway Healthcare Group’s listing in the first quarter and SDPR’s data centre at Elmina due in 3Q26.
Positive progress on Eco World Development Group’s Puncak Alam data centre was also cited as a potential catalyst.
The house remains upbeat on Iskandar Malaysia property plays, anticipating increased launches tied to the RTS completion from the second half of the year.
The bank also highlighted potential value-unlocking exercises that could benefit shareholders. Beyond SWB’s healthcare listing, other developers including SDPR and SP Setia (SPSB) may list investment properties, offering “special” dividends or dividends in specie.
RHB Research further noted that the easing interest rate environment could encourage developers to acquire landbanks and industrial properties, with SWB’s MCL Land acquisition cited as an example.
Rumours of a possible merger between SWB and IJM Corp were also mentioned as a potential market-moving event.
The house concluded that 2026 may be a year of both strategic expansion and shareholder rewards, positioning the property sector for an exciting year ahead.
