Kuala lumpur: MBSB Investment Bank Bhd (MBSB IB) remains sanguine on the property sector, given the healthy buying interest in the second half of 2025, with the Johor-Singapore Special Economic Zone and the Johor Bahru-Singapore Rapid Transit System continuing to be catalysts to the sector.

According to BERNAMA News Agency, the recent overnight policy rate (OPR) cut will boost buying sentiment for properties. The investment bank maintains a positive stance on the sector, with Mah Sing Group Bhd, UOA Development Bhd, and Matrix Concepts Holdings Bhd as its top picks. Mah Sing’s strategy of selling affordable residential properties is expected to sustain its new sales growth, while the OPR cut will increase affordability among buyers, especially first-time home buyers.

MBSB IB also favors UOA Development for its dividend yield of 5.6 percent, compared to the compressed Malaysian Government Securities (MGS) yield of 3.4 percent and the average real estate investment trust (REIT) yield of 4.4 percent. UOA’s recent entry into the Johor property market is anticipated to support new sales growth in the future.

The bank identifies a significant catalyst for Matrix Concepts from MVV City, which is expected to provide an earnings boost in addition to stable contributions from Bandar Sri Sendayan. The dividend yield of Matrix Concepts is considered attractive at an estimated six percent.