Despite ongoing geopolitical tensions and concerns over rising inflation, Malaysia’s property sector continues to show resilience, according to a recent report by RHB Investment Bank.

The research house said real estate remains an effective hedge against inflationary pressures, particularly amid rising energy prices linked to the ongoing West Asia conflict. Higher construction costs — driven by increases in building materials, labour, and land prices — are also expected to push up development and replacement costs for new properties.

While some market observers are worried about the possibility of interest rate hikes, RHB IB believes Malaysia’s stronger ringgit should help maintain a stable interest rate environment, providing support for both developers and homebuyers.

The investment bank noted that developers are unlikely to lower their sales targets when announcing their financial results this month. Although some companies may adopt a wait-and-see approach, most developers are expected to proceed with their planned launches.

Demand for properties has also remained relatively stable in the first quarter of 2026, despite uncertainties arising from the US-Iran geopolitical conflict that began in late February.

RHB IB added that developers have not seen any significant impact on profit margins so far, though prolonged global tensions could affect margins in the coming quarters if construction and operational costs continue to rise.

At the same time, developers are actively continuing with asset monetisation and value-unlocking exercises introduced in previous quarters. The bank believes companies pursuing similar strategies could continue to benefit despite broader market headwinds.

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