This article first appeared in The Edge Malaysia Weekly on July 7, 2025 - July 13, 2025
THE Rapid Transit System (RTS) Link Project, electrified double-track project, Johor-Singapore Special Economic Zone (JS-SEZ), Forest City Special Financial Zone (SFZ) and possibly revived High-Speed Rail (HSR) are driving up the buzz in Johor among residents and investors.
On July 1, the Department of Statistics Malaysia reported that Johor recorded the highest economic growth rate in the country in 2024, at 6.4% (up from 4.1% in 2023), with a gross domestic product (GDP) value of RM158 billion (2023: RM148.6 billion).
According to CBRE | WTW data, property prices across sectors — from residential to industrial and commercial — have risen over the years. This trend is evident in residential areas such as Horizon Hills and Senibong Villas, as well as in industrial zones such as Senai, Iskandar Puteri and Pasir Gudang. Commercial land values have also increased in both the city centre and fringe areas of Johor Bahru (see charts).
CBRE | WTW group managing director Tan Ka Leong tells The Edge: “Overall, we are seeing a positive trajectory in transactions across Iskandar Malaysia, particularly in areas near key infrastructure developments.
“The growth can be attributed to renewed market confidence, improved cross-border mobility and major catalysts such as the RTS, which has spurred interest and increased property and land values in surrounding locations. Areas close to transport hubs and future commercial corridors are drawing more attention, owing to their long-term potential.”
Ka Leong adds that there has been strong interest in land acquisitions for industrial and data centre development, fuelled by robust demand from regional tech players and neighbouring countries.
He notes that the residential market is showing signs of recovery as activity stabilises after the disruptions caused by the pandemic. In the commercial segment, he observes that land values are rising in both city centre and fringe locations, though the increase is more prominent in the city centre and near the Bukit Chagar RTS station, where infrastructure upgrades have had a more immediate impact. He adds that the industrial sector continues to grow steadily, with areas such as Senai and Iskandar Puteri remaining key hotspots, owing to ongoing demand for industrial land.
CBRE | WTW data shows that the most significant increase over an 11-year period occurred in Pasir Gudang, where industrial land prices rose from RM25 psf in 2015 to RM62 in 2025, reflecting a compound annual growth rate (CAGR) of 9.3%. Industrial land in Iskandar Puteri also saw strong gains, doubling from RM65 psf in 2015 to RM130 in 2024.
Meanwhile, commercial land in the CBD climbed from RM621 psf in 2013 to RM1,238 in 2024. Over a 13-year period, commercial land in the city fringe (excluding the city centre) increased from RM328 psf in 2011 to RM598 in 2024.
What changed hands
“Several recent land transactions in the state were mainly for high-rise serviced apartment developments,” Tan Wee Tiam, executive director of Olive Tree Property Consultants, tells The Edge. They include a 1.73-acre plot fronting Jalan Terau, designated for a premium serviced apartment, and a 4.84-acre commercial plot in Taman Suria put up for auction with a reserve price of RM54 million and sold at RM136.8 million, or about RM650 psf. KSL Holdings Bhd (KL:KSL) is said to have acquired the 4.84-acre tract via an online bidding exercise held on April 30. The Edge understands that the land — identified as Lot 46045 — attracted eight bidders.
Wee Tiam says the land is in a mature locality, with many established housing projects nearby, such as Taman Suria, Melodies Garden, Taman Sentosa and Taman Sri Tebrau. It is a short drive to the city centre and easily accessible from the North-South Highway. “We understand all bidders, save for one, are from Johor. The local developers are familiar with the landscape, hence the intense bidding,” he adds.
Also on April 30, UOA Development Bhd (KL:UOADEV), via its wholly-owned subsidiary Regenta Development Sdn Bhd, entered into a joint venture (JV) with Uptown Haven Sdn Bhd to acquire Midtown Sanctuary Sdn Bhd (Midtown). The JV will see UOA Development and Regenta holding 75% equity interest and Uptown Haven holding the remaining 25% share in Midtown.
Midtown has signed a sale and purchase agreement with Symphony Access Sdn Bhd to acquire a 1.2-acre freehold plot in Johor for RM62.44 million, or about RM1,180 psf, with plans to develop serviced apartments. This transaction also marks UOA Development’s first venture outside Kuala Lumpur.
Wee Tiam says these record-breaking prices reflect a bullish sentiment among developers, especially for serviced apartments near Johor Bahru city centre, and remain within expectations, given the location. He adds that CTC Skyline Sdn Bhd purchased nine tracts of contiguous land measuring a total of 1.64 acres near the upcoming Hotel Sheraton for about RM75 million, or RM1,050 psf.
Last December, Mah Sing Group Bhd (KL:MAHSING) bought 5.99 acres in Taman Pelangi from S P Setia Bhd (KL:SPSTIA) for RM156.8 million, about RM600 psf, to build premium serviced apartments.
TS Law Group is said to have bought Plaza Sentosa in Taman Sentosa (formerly Kompleks Lien Ho), with plans for redevelopment.
In June 2024, S P Setia sold its 959.72-acre tract in Tebrau to Senibong Island Sdn Bhd, a company linked to Tan Sri Syed Mokhtar Albukhary, for RM564 million, or about RM13.50 psf, in cash. S P Setia had tried twice to sell the land to Scientex Bhd (KL:SCIENTX) — first, for RM518.1 million, then RM547.65 million — but the deals fell through when Scientex failed to obtain a waiver of the bumiputera equity condition imposed by the Economic Planning Unit.
In March last year, Maxim Global Bhd (KL:MAXIM) acquired a 6.5-acre freehold parcel in Taman Maju Jaya for RM167 million. The land, purchased from S P Setia Bhd through its wholly-owned subsidiary I&P Group Sdn Bhd, is adjacent to Bukit Chagar, the site of the RTS construction.
Wee Tiam attributes the general optimism to strong sales from recent project launches, including Majestic Gen’s developments in Bukit Meldrum (Gen Rise) and Lumba Kuda (Gen Sphere), Exsim Group’s project just 440m from the CIQ complex, and the 15.5-acre Yahya Awal JV by Sunway Property and Majestic Gen, launched at end-April.
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