KUALA LUMPUR (June 25): Record unbilled sales are expected to provide property developers 12-18 months of revenue visibility and help cushion the cyclical risk in loan approvals and conversion, said BIMB Securities Research.

While transaction volume in the first quarter of 2026 fell by 8% year-on-year, transaction value remained relatively resilient, having eased only 0.6%. 

The house said the data suggests a more selective market rather than a broad downturn, as it kept its ‘overweight’ rating on the sector in a note. 

BIMB noted its "selective preference for developers with strong execution, resilient sales conversion and strategic land bank". Its top pick for the sector is Mah Sing Group Bhd (KL:MAHSING), with a 'buy' call and a target price of RM1.85.

Meanwhile, it said demand for affordable and mid-market housing is largely supported by the government’s focus on home-ownership through its target of one million affordable homes by 2035, as well as income tax relief and full stamp duty exemption.

Additionally, cost pressures are eased through the expansion of Simen Rahmah which provides subsidised cement for affordable housing projects priced below RM300,000.

Further, BIMB viewed household financing conditions as supportive of mid-range housing demand in the second half of 2026 (2H2026) due to steady household loan growth and a stable interest rate environment.

Financing eligibility remains more constrained in the lower-income segment, but this should still be anchored by policy support, said the research house.

Ultimately, however, “conversion remains dependent on loan approvals and booking-to-sales and purchase agreement execution”, it added.

Meanwhile, data centres, advanced manufacturing and logistics are expected to be the key structural drivers of industrial property demand in 2H2026.

The New Industrial Master Plan 2030 and the Johor-Singapore Special Economic Zone are set to benefit Johor through subsequent supply chain diversification, Singapore spillover demand and improving cross-border connectivity.

Beyond Johor, the house highlighted increasing traction in the MVV TechValley, Pulau Indah, Elmina Business Park and IOI Properties Group Bhd’s (KL:IOIPG) Banting project.

“We see this as positive for developers with strategic industrial land bank and monetisation potential, including Sime Darby Property Bhd (KL:SIMEPROP), Matrix Concepts Holdings Bhd (KL:MATRIX), IOI Properties Group and Mah Sing, as well as industrial real estate investment trusts with modern logistics assets and acquisition-led growth,” it said.