This article first appeared in City & Country, The Edge Malaysia Weekly on December 30, 2024 - January 12, 2025

The real estate industry had an eventful 2024, marked by notable highs and lows. Among the key highlights was encouraging data from the National Property Information Centre (Napic), which showed strong market recovery. The number of residential transactions surged as demand for homes remained robust, while segments such as older office spaces and retail lots experienced a slowdown, resulting in a more balanced market overall.

Major infrastructure projects, such as the Johor Bahru-Singapore Rapid Transit System (RTS), East Coast Rail Link (ECRL) and Johor-Singapore Special Economic Zone (SEZ), also grabbed headlines, with their anticipated impact expected to shape the local property market significantly.

The year also brought important regulatory changes, including updates to the Malaysia My Second Home (MM2H) programme, amendments to the Urban Redevelopment Act, and incentives to boost the Special Financial Zone (SFZ) in Johor.

City & Country takes a look at Malaysia’s key real estate developments and trends that shaped 2024.

On Jan 11, Malaysia and Singapore signed a memorandum of understanding (MoU) to formalise the cooperation of both countries on the Johor-Singapore SEZ. Under the MoU, both countries will work towards enhancing cross-border flows of goods and people as well as strengthening the business ecosystem in the SEZ to support investments.

The 42-acre riverside Battersea Power Station in central London, which is co-owned by S P Setia Bhd (KL:SPSETIA), Sime Darby Property Bhd (KL:SIMEPROP) and the Employees Provident Fund (EPF), achieved another milestone with the completion of 50 Electric Boulevard, a 200,000 sq ft office building designed by Foster + Partners, in March this year.

Malaysia’s tallest building — Merdeka 118 tower — received the Leadership in Energy and Environmental Design (LEED) Platinum certification in April under the LEED v2009 Core and Shell rating system, making it the first megatall building in the country to achieve this. The LEED certification recognises a project’s compliance with criteria set by the US Green Building Council and is overseen by Green Business Certification Inc.

Kuala Lumpur edged up 16 notches to 73rd out of 142 cities in the world on the latest 2024 Smart City Index (SCI) by the Institute for Management Development’s Smart City Observatory announced in April. The 2024 SCI is the second report by the Smart City Observatory in collaboration with the World Smart Sustainable Cities Organization (WeGO). It combines data and survey responses from citizens in 142 cities globally to highlight how technology is improving the quality of life for urban residents.

Malaysia’s property transaction value hit RM196.83 billion in 2023 — the highest ever recorded. The figure was a 9.91% year-on-year rise from the previous all-time high of RM179.07 billion, Napic said in a statement issued on March 6. Meanwhile, the number and value of overhang residential units fell 7% y-o-y to 25,816 units from 27,746 units and declined 4% to RM17.68 billion from RM18.41 billion respectively.

Taiwan-based Siliconware Precision Industries Co Ltd broke ground on May 24 for its semiconductor packaging and testing facility worth RM6 billion at Bandar Cassia Technology Park in Penang. The 8ha facility is expected to introduce advanced packaging, testing technologies and turnkey solutions. The plant is projected to create nearly 3,000 skilled jobs over the next 15 years.

Datuk Ho Hon Sang of Equatorial Palms Sdn Bhd was elected Real Estate and Housing Developers’ Association (Rehda) Malaysia president, succeeding Datuk N K Tong, during the association’s Annual Delegates Conference on June 29. Taking over Ho’s previous post of deputy president is Rehda Selangor chair Datuk Zaini Yusoff of S P Setia.

Tropicana Corp Bhd (KL:TROP) announced the sale of Tropicana Gardens Mall to IOI Properties Group Bhd (KL:IOIPG) for RM680 million. In a media statement issued in July, Tropicana Corp stated that the proceeds from the sale would be used to substantially reduce the group’s debt, thereby improving its cash flow position and reducing interest expenses. The mall has been officially renamed IOI Mall Damansara.

Homegrown green rating tool GreenRE awarded AEON Mall Mean Chey in Phnom Penh, Cambodia, with Gold certification under the non-residential category in May. It is the body’s first certified project in Southeast Asia. GreenRE also signed an MoU with the Cambodia Green Building Council to provide support and knowledge with regard to green buildings.

spot at this year’s The Edge Malaysia Top Property Developers Awards (TPDA), the second time the company has done so after its inaugural win in 2009. This year, it also shared the top spot in the Best in Qualitative Attributes sub-award with Gamuda Bhd (KL:GAMUDA), Property Division.

Syarikat Jaminan Pembiayaan Perniagaan Bhd (SJPP) and Syarikat Jaminan Kredit Perumahan Bhd (SJKP) began accepting applications from financial institutions in March for special government guarantee schemes announced in Budget 2024. These schemes are designed to support micro, small, and medium enterprises (MSMEs) as well as first-time homebuyers who do not have a fixed income. The SJPP guarantee is part of Budget 2024’s goal to provide RM44 billion in financing to MSMEs this year.

The Urban Redevelopment Act is being drafted. At present, 139 potential redevelopment sites, covering 1,372 acres in Kuala Lumpur, will be up for bidding once the Act is approved, Housing and Local Government Minister (KPKT) Nga Kor Ming said in March. The 139 potential sites can be found on the DBKL website.

The Selangor state government in April announced the establishment of an integrated circuit (IC) design hub in Puchong, touted to be the largest in Southeast Asia. The project is in collaboration with the federal government, international semiconductor firms and venture capitalists. It is a strategic move to position Malaysia as a potential powerhouse in the global IC design industry.

KPKT proposed the Real Property Development Act to streamline the real estate market in Peninsular Malaysia. On May 14, Minister Nga Kor Ming said the Act aims to govern the protection of the interests of purchasers, developers and landowners, covering both residential and commercial properties. He stressed, however, that it is still subject to discussion.

A senior personnel of Lagenda Properties Bhd (KL:LAGENDA) was remanded by the Malaysian Anti-Corruption Commission (MACC) in May as part of investigations into the subdivision of Malay reserve land in Manjung, Perak. According to the source, the land covers an area of roughly 649.2ha and was illegally transferred to non-Malay companies and individuals.

On June 15, the Tourism, Arts and Culture Ministry (Motac) announced new conditions for the MM2H programme. Key changes include discontinuing original agents, requiring agents with expired licences to reapply and removing the option for some participants to apply for permanent residence (PR). Previously, those in the “Platinum” category were eligible for PR.

PR1MA Corp Malaysia commenced construction of its first township development, called Bandar PR1MA Teluk Intan, in Teluk Intan, Perak, in June. Spread across a 140-acre tract, the township will comprise 1,500 landed residential units, commercial lots, a central park and amenities for the community such as a multi-purpose hall, mosque, kindergarten and daycare centre.

Development of the Johor-Singapore SEZ’s infrastructure will be co-financed by the government and the private sector, Economy Minister Rafizi Ramli said in July. He added that the government had informed its Singaporean counterpart that it would not “blindly” allocate funds for infrastructure development; instead, it will be done in collaboration with private sector investors.

The High Court dismissed the government’s application for a stay of execution and ordered the transfer of 106ha of land in Jalan Duta, Kuala Lumpur, to Semantan Estate Sdn Bhd within three months from August. While respecting the court’s decision on the “Duta enclave” case, Prime Minister Datuk Seri Anwar Ibrahim proposed a review of the laws to the Cabinet, as there were concerns about the “very serious” implications that this ruling could have for the country.

S P Setia Bhd said in August that it had initiated legal action against its former senior management and a former director of the group over alleged breaches of duties linked to the purchase of land in Kota Kinabalu, Sabah, and the sale of units under the group’s Aeropod project. The group’s former deputy president and chief operating officer Datuk Wong Tuck Wai, former executive vice-president Datuk Kow Choong Ming and former president-cum-CEO and director Datuk Khor Chap Jen were the first three of 11 defendants named in the suit.

Mass Rapid Transit Corp Sdn Bhd (MRT Corp) undertook a three-month public inspection exercise to gather public feedback on the MRT3 project, also known as the Circle Line, from Sept 2 to Dec 2. The line will be the final piece of the Klang Valley Mass Rapid Transit network that will run along the perimeter of Kuala Lumpur. In January, MRT Corp said the land acquisition for MRT3, which involves more than 1,000 lots, is expected to be completed in two years.

French-based digital automation and energy management corporation Schneider Electric said in October that about two-thirds of the country’s infrastructure is almost 15 to 20 years old and does not meet current building code energy-efficiency or safety requirements. All this infrastructure is expected to stay in use until 2050. In particular, the office market has 56% of stock that is “very old” and needs urgent modernisation to meet current modern office requirements.

In a tender notice on Dec 2, MRT Corp invited local and foreign companies to participate in the tender for the Penang Light Rail Transit (LRT) Mutiara Line project, for which the federal government has allocated RM10 billion. The 29km LRT line is expected to be a medium-capacity train line with up to 20 stations, running from Silicon Island in the southeast of Penang Island to Komtar in George Town and from George Town to Penang Sentral in Butterworth.

In Budget 2025 announced in October, the government is focusing on measures that provide adequate housing for the B40 group and aid aimed at first-time homeowners, such as tax exemptions on loan interests of up to RM7,000 for homes priced RM500,000 and below, and up to RM5,000 for houses in the RM500,001-to-RM750,000 price range; and the introduction of the Step Up Financing Scheme of up to RM5 billion targeted for youths, which offers a lower repayment rate for the first five years.

In November, Eco World Development Group Bhd (KL:ECOWLD) acquired 10 parcels of freehold land measuring 847.249 acres in Semenyih for RM742.4 million. The land is poised to be used for a mixed residential and commercial development with a preliminary estimated gross development value of RM4.6 billion. It is adjacent to the company’s township development Eco Forest and near Eco Majestic.

Singapore’s Land Transport Authority (LTA) said on Nov 29 that the infrastructure companies of the Johor Bahru–Singapore RTS will grant RTS Operations Pte Ltd access to the RTS Link civil structures progressively by the end of this year, allowing the commencement of the installation works for the RTS Link rail systems. LTA also said the installation of the Viaduct Aesthetic Feature, an iconic structure situated near the connecting span along the marine viaduct, has been completed.

J Satine, a mixed-use development located in Wangsa Maju, comprising 3,600 Residensi Wilayah apartments, 661 SoHo units and 42 commercial units, has encountered structural issues. Cracks were discovered on the shear wall structure, pillars and floors of one of its blocks. In response, Kuala Lumpur City Hall (DBKL) issued a stop-work order in November to facilitate further investigations. The project is a joint development between Platinum Victory Group and the property development arm of textile wholesaler and retailer Jakel Group. The main contractor for the development is TCS Construction Sdn Bhd, a wholly owned subsidiary of TCS Group Holding Bhd (KL:TCS).

The federal government is poised to implement at least 23 new affordable housing projects through the People’s Housing Programme (PPR) under the 12th Malaysia Plan, KPKT Deputy Minister Datuk Aiman Athirah Sabu said in September. These projects are set to provide more than 7,000 affordable homes, specifically designed to assist the low-income B40 group.

On July 23, the government confirmed the temporary suspension of new construction approvals in Kuala Lumpur, following several sinkhole incidents. This suspension will remain in place until a task force is established to review the standard operating procedures for development projects in the city, ensuring geotechnical studies done by certified engineers are submitted at an earlier stage, specifically during the planning approval application process.

On Sept 20, the Malaysian government announced incentives to jump-start the Forest City SFZ in Johor, including a concessionary corporate tax rate of between 0% and 5%, and a personal income tax rate of 15% for knowledge workers and Malaysians who choose to work there. Forest City will also be the first location in Malaysia to offer a 0% tax rate for family offices. The government aims for the scheme to be operational by the first quarter of 2025.

Google held a groundbreaking ceremony in October to commence the construction of its first data centre in Malaysia at Sime Darby Property’s Elmina Business Park in the City of Elmina township, Selangor. The hyperscale data centre will be built according to Google’s customised specifications and infrastructure requirements. It is targeted to be completed in early 2026 and will be operated by Google upon completion.

On Dec 10, SkyWorld Development Bhd (KL:SKYWLD) signed an agreement with Penang state agencies to jointly develop the country’s largest affordable housing project, valued at RM13 billion. The project aims to deliver more than 38,000 Rumah Mampu Milik Madani and Rumah Bakat Baru Madani homes priced at between RM225,000 and RM420,000. Targeting the M40, the first phase will be launched in 2026 and the entire project will span a period of 10 years.

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