PETALING JAYA: CIMB Research remains cautious on Johor Baru’s high-rise residential segment, as latest data indicate rising oversupply risks if demand fails to keep pace.
Data by the National Property Information Centre for the first quarter of financial year 2026 (1Q26) indicates an existing stock of 108,863 serviced apartment units.
This is supplemented by an incoming and planned supply of 41,832 and 18,712 units, respectively, through 2030 and 2031.
While CIMB Research is “neutral” on the property sector, it favours the industrial and landed property segments.
“The forthcoming Johor-Singapore Special Economic Zone (JS-SEZ) blueprint and commencement of the Johor Baru-Singapore Rapid Transit System (RTS) Link in 1Q27 should support demand for landed residential and industrial properties in Johor, with spillover benefits to commercial and retail assets in key growth corridors.
“Prime industrial land values have reportedly doubled to RM150 per sq ft from RM70 to RM80 per sq ft in 2024, driven by sustained data centre-related demand, with land-sourcing increasingly shifting beyond Johor Baru owing to power and water constraints,” it said in a note.
Prime Minister Datuk Seri Anwar Ibrahim recently said that the JS-SEZ master plan would be finalised in the near future.
Prior to this, during the Johor state election campaign, the Mentri Besar Datuk Onn Hafiz Ghazi had criticised the federal government for allegedly delaying the signing of the JS-SEZ master plan.
He said the master plan is a Malaysian government document that does not require the approval or signature of the Singapore government before it can be unveiled.
However, regardless of the time taken for launch, analysts are still positive on the impact of the master plan and the overall JS-SEZ development.
Within its coverage, UEM Sunrise Bhd
remains CIMB Research’s top pick for Johor’s land value reflation, given its sizeable Iskandar Puteri land bank and upcoming Gerbang Nusajaya industrial masterplan in 1Q27.
Other developers with meaningful exposure to the RTS Link catchment include Eco World Development Group Bhd, Mah Sing Group Bhd, Sunway Bhd, S P Setia Bhd and KSL Holdings Bhd.
Meanwhile, the research house said the new Kuala Lumpur-Johor Baru Sentral Electric Train Service has improved intrastate connectivity and unlocked development opportunities in surrounding districts.
This benefits Matrix Concepts Holdings Bhd through its Bandar Seri Impian township in Kluang.
Meanwhile, commenting on the recent Johor polls, CIMB Research said the supermajority won by Barisan Nasional places the new administration in a strong position to advance its development agenda.
This includes the formal unveiling of the JS-SEZ blueprint in 4Q26, supported by the federal unity government.
Barisan Nasional retained Johor with a commanding two-thirds majority, securing 48 of the 56 seats.
“We also expect the rollout of the approximately RM7bil Johor Baru Elevated Autonomous Rapid Transit project in the second half of financial year 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 Link 2 and KL-Singapore High Speed Rail, await further policy clarity,” added the research house.
