Johor Property Sector Remains Neutral After State Poll, Says CIMB Securities
KUALA LUMPUR, July 16 (Bernama) -- CIMB Securities Sdn Bhd has maintained its ‘neutral’ call on the property sector, particularly in Johor, following the contested state election, as the outcome provides a clear mandate for the new administration to ensure development continuity.
This includes the formal unveiling of the Johor-Singapore Special Economic Zone (JS-SEZ) blueprint in the fourth quarter (4Q) of 2026, with support from the federal unity government, it said in a research note today.
The investment bank also expects the rollout of the RM7 billion Johor Bahru Elevated Autonomous Rapid Transit (e-ART) project in the second half (2H) of 2026, following the award of a letter of intent to the DOM Industries-MMC Engineering-Nylex-BTS Group Holdings consortium.
However, other cross-border infrastructure projects, including the proposed Tuas-Iskandar Puteri Rapid Transit System (RTS) Link 2 and the Kuala Lumpur-Singapore High Speed Rail (HSR), are still awaiting further policy clarity.
“While we remain ‘neutral’ on the property sector, the forthcoming JS-SEZ blueprint and commencement of the RTS Link in 1Q 2027 should support demand for landed residential and industrial properties in Johor, with spillover benefits to commercial and retail assets in key growth corridors,” it said.
Prime industrial land values have reportedly doubled to RM150 per square foot (psf) from RM70-RM80 psf in 2024, driven by sustained demand related to data centres, with land sourcing increasingly shifting beyond Johor Bahru due to power and water constraints.
However, CIMB Securities cautioned on Johor Bahru’s high-rise residential segment, where first-quarter 2026 data from the National Property Information Centre (Napic) showed an existing stock of 108,863 serviced apartment units, alongside incoming and planned supply of 41,832 and 18,712 units, respectively, through 2030/2031.
This raises oversupply risks if demand fails to keep pace with the additional supply.
Within its coverage, UEM Sunrise remains its top pick for Johor’s land value reflation, given its sizeable Iskandar Puteri land bank and the upcoming Gerbang Nusajaya industrial masterplan in 1Q 2027.
Other developers with meaningful exposure to the RTS Link catchment include Eco World, Mah Sing, Sunway, SP Setia and KSL Holdings.
Meanwhile, the new Kuala Lumpur-JB Sentral Electric Train Service has improved intrastate connectivity and unlocked development opportunities in surrounding districts, benefiting Matrix Concepts through its Bandar Seri Impian township in Kluang.
In the state election held on July 11, 2026, Barisan Nasional retained Johor with a commanding two-thirds majority, securing 48 of the 56 seats.
-- BERNAMA