PETALING JAYA: Property experts are projecting a positive outlook for the real estate market for 2025, underpinned by positive buyer and investor sentiment, sound economic fundamentals, as well as the buzz surrounding upcoming infrastructure projects and the Johor-Singapore Special Economic Zone (JS-SEZ).
At the launch of CBRE | WTW’s 2025 Market Outlook Report last week, group managing director Tan Ka Leong said ongoing infrastructure projects such as the East Coast Rail Line, the Johor-Singapore Rapid Transit System Link (RTS Link) and the Pan Borneo Highway are set to provide opportunities to investors.
“To maximise and sustain the benefits from these game changers, development planning and building regulations should be reviewed and updated to fully leverage the potential of the property market,” he said.
Meanwhile, Savills Malaysia Sdn Bhd group managing director Datuk Paul Khong (pic) said there will be strong interests in mixed-use property projects nearby with the expansion of rail connectivity and the transit-orientated development (TOD) zones.
“These projects will be the favourite “hotspots” to watch out for, such as the LRT3 line (with 25 stations) connecting Bandar Utama to Klang (operational by the third quarter of 2025), RTS Link (to be operational by early 2027), MRT3 line (expected in 2027) and Mutiara LRT line @ Penang Island (completion in 2030),” he said.
TODs are development concepts that are within close proximity of public transport services.
Khong said 2025 is expected to be a more active year with improved investor sentiment.
“On the global front, the upcoming new US president’s inauguration will be eventful with headwinds well focused towards China.
“Malaysia’s economic outlook in 2025 is strong but it will be an adaptive year with some structural shifts expected.”
Additionally, Khong said continued growth by strategic investments and strong industrial base and policies, will promote economic inclusivity and sustainability for continued property sector growth.
“Last year ended well, surpassing 2023’s performance in terms of economic growth, resilient domestic demand, export activities and a healthy job market.”
He noted that the local property market saw notable increases in transactions, particularly lands, industrial and commercial assets.
“Our records show RM13.9bil in major transactions in the first nine months of 2024, doubling from RM7.29bil during the same period in 2023.
“Land consists of about 64% of the total transaction value, followed by retail properties (23.9%) and Industrial properties (4.92%).”
Khong said the strong momentum in 2024 is expected to continue into 2025.
Meanwhile, the announcement of the JS-SEZ last week is expected to offer plenty of benefits to the local property sector.
Olive Property Consultants chief executive officer Samuel Tan said the JS-SEZ is expected to see the development of new factories and houses that will benefit many construction firms.
“Property developers will enjoy good sales as more people are expected to migrate to Johor and they will need housing.
“The overhang situation in Johor will improve. More commercial and industrial parks are expected to be developed,” he told StarBiz.
The JS-SEZ will cover 3,571 sq km across six cities and townships in Southern Johor, including Johor Baru, Iskandar Puteri, Pasir Gudang, Kulai, Pontian and Pengerang.
AmInvestment Bank Research in a report noted that nine flagship zones have been identified namely, Johor Baru City Centre, Iskandar Puteri, Tanjung Pelepas – Tanjung Bin, Pasir Gudang, Senai-Skudai, Sedenak, Forest City, the Pengerang Integrated Petroleum Complex and Desaru.
“The JS-SEZ aims to get 50 high-value projects off the ground and create 20,000 high skilled jobs within the next five years. Over the next decade, it aims to implement 100 high-value projects.
“The first wave of takers is likely to be global companies that are trying to manage geopolitical risk.
“Focus sectors will be logistics, technology (data centre related and advanced electrical and electronics), petrochemical, tourism and energy transition.”
