CIMB Securities flags diverging outlook between asset classes in Johor

KUALA LUMPUR (July 16): Johor’s property market is set to benefit from rising industrial land values and upcoming infrastructure projects, according to CIMB Securities, citing a two-speed market where industrial and landed segments are favoured while high-rise supply risks loom.

The research house said the Johor-Singapore Special Economic Zone blueprint, expected in the fourth quarter of 2026, and the start of the Rapid Transit System Link in the first quarter of 2027 should support demand for industrial and landed properties.

Prime industrial land prices in Johor have reportedly risen to RM150 per sq ft from RM70 to RM80 per sq ft in 2024, driven largely by demand from data centre operators.

CIMB nevertheless maintained its “neutral” rating on the property sector, citing oversupply risks in Johor Bahru’s high-rise residential market.

The city had 108,863 existing serviced apartment units as at the first quarter of 2026, with another 60,544 units under construction or planned through 2030/2031, raising oversupply risks if demand fails to keep pace.

UEM Sunrise Bhd (KL:UEMS) remained CIMB’s top pick for Johor exposure, given its sizeable Iskandar Puteri land bank and planned Gerbang Nusajaya industrial development in the first quarter of 2027. The research house maintained its “buy” call and target price of 83 sen.

Other developers with meaningful exposure to the Rapid Transit System Link catchment include Eco World Development Group Bhd (KL:ECOWLD), Mah Sing Group Bhd (KL:MAHSING), Sunway Bhd (KL:SUNWAY), S P Setia Bhd (KL:SPSETIA), and KSL Holdings Bhd (KL:KSL).

Meanwhile, the new KL-JB Sentral Electric Train Service has improved intrastate connectivity and unlocked development opportunities in surrounding districts, benefiting Matrix Concepts Holdings Bhd (KL:MATRIX) through its Bandar Seri Impian township in Kluang.

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