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Kuala Lumpur: Demand for property in Malaysia has remained robust despite the introduction of the expanded Sales and Service Tax (SST) and targeted fuel subsidy measures, RHB Investment Bank Bhd (RHB IB) said.

In a note Tuesday, RHB IB said aggregate property sales rose 40 per cent quarter-on-quarter in the third quarter of 2025 (3Q 2025).

“Excluding overseas contributions, sales in the first nine months of 2025 still grew one per cent year-on-year.

“Apart from ramped-up launches by developers, the resilient numbers indicate that demand for property remains robust, especially following the implementation of the expanded SST and targeted fuel subsidy in the second half of 2025,” it said.

The investment bank noted that launches in late 2025, especially in Johor and the Klang Valley, are expected to continue supporting sales conversion and billings in early 2026.

“Although these catalytic developments are not entirely new, their imminent completion and visibility could be sufficient to bolster market confidence,” it said.

RHB IB added that sector sentiment could also benefit from progress on infrastructure projects, including the Johor Bahru–Singapore Rapid Transit System (RTS), which is nearing completion.

The bank maintained its “overweight” call on the property sector, citing strong 3Q 2025 sales and an active pipeline of launches.

RHB IB retained Sunway and Sime Darby Property Bhd (SDPR) as its top sector picks, highlighting their strong sales pipelines, visible earnings growth, and potential value-unlocking opportunities in 2026.

“2026 will be a pivotal year for both Sunway and SDPR, with the former’s healthcare division listing and the latter’s completion of its first data centre facility,” it said.