Johor bahru: The federal government is set to unveil the Johor-Singapore Special Economic Zone (JS-SEZ) Investment Blueprint and Master Plan by the end of the year, as stated by RHB Investment Bank Bhd (RHB IB). This announcement comes amid growing optimism for the Johor property market.
According to BERNAMA News Agency, RHB IB expressed increased confidence in the near-term prospects of the Johor property market. December is anticipated to mark the completion of the Johor Bahru-Singapore Rapid Transit System (RTS) Link, a significant cross-border infrastructure project expected to enhance market sentiment and investor confidence regarding the state's growth outlook.
Investment interest, both local and foreign, in manufacturing and data centers is projected to remain steady, continuing to drive demand for various properties, including landed homes, commercial shops, industrial lands, and selected high-rise projects in Johor. RHB IB highlighted ongoing major land transactions driven by data center players, which present revalued net asset value (RNAV) re-rating potential for developers with substantial landbank exposure in Iskandar Malaysia.
Prominent developers, such as Eco World Development Group Bhd (EcoWorld) and Mah Sing Group Bhd, are channeling resources towards industrial development in Iskandar Malaysia. EcoWorld plans to launch two new industrial parks, Eco Business Park 8 in Kulai and Eco Business Park 9 at Ibrahim Technopolis (IBTEC), by 2026 and 2028, respectively. Mah Sing has secured shareholder approval to acquire 169.56 hectares (419 acres) of freehold land in Kulai from Kuala Lumpur Kepong Bhd, paving the way for the MS Industrial Park project with an estimated gross development value (GDV) of RM2.26 billion.
Meanwhile, RHB IB noted that the Klang Valley property market is expected to remain resilient. The recent introduction of the new Light Rail Transit 3 (LRT3) Shah Alam Line, connecting Bandar Utama to Johan Setia, is seen as a significant milestone in Klang Valley's infrastructure development. RHB IB anticipates sustained demand for essential products, such as landed township properties and industrial properties.
RHB IB has maintained its 'Overweight' call on Malaysia's real estate sector, reflecting its positive outlook on the sector's performance.