Barisan Nasional’s decisive victory in the Johor state election is expected to accelerate major infrastructure and economic development initiatives, including the long-awaited Johor-Singapore Special Economic Zone (JS-SEZ) blueprint and the Johor Bahru Elevated Autonomous Rapid Transit (e-ART) project, according to CIMB Research.
The research house said BN’s commanding two-thirds majority, having secured 48 of the 56 state assembly seats, provides the political stability needed to push forward the state’s development agenda alongside the Federal Government.
CIMB expects the formal unveiling of the JS-SEZ blueprint in the fourth quarter of 2026, with support from the Federal unity government, while the approximately RM7 billion Johor Bahru e-ART project is anticipated to commence in the second half of the year.
The e-ART project follows the issuance of a Letter of Intent to a consortium comprising DOM Industries, MMC Engineering, Nylex (Ancom Nylex) and BTS Group Holdings.
However, the research house noted that several other high-profile cross-border infrastructure projects, including the proposed Tuas-Iskandar Puteri Rapid Transit System Link 2 and the Kuala Lumpur-Singapore High-Speed Rail (HSR), still require greater policy clarity before progressing.
Industrial and landed properties to benefit
CIMB maintained its Neutral stance on Malaysia’s property sector but believes Johor will continue to benefit from structural growth drivers, particularly the JS-SEZ and the upcoming Johor Bahru-Singapore Rapid Transit System (RTS) Link, which is scheduled to begin operations in the first quarter of 2027.
These developments are expected to support demand for landed residential and industrial properties, with positive spillover effects on commercial and retail assets located within key growth corridors.
The research house highlighted that prime industrial land prices in Johor have reportedly doubled to around RM150 per square foot, compared with RM70 to RM80 per square foot in 2024, driven largely by sustained demand from data centre investments.
It added that developers are increasingly sourcing industrial land outside Johor Bahru due to constraints in electricity and water supply within the city.
Oversupply concerns remain for high-rise segment
Despite the positive outlook for industrial and landed developments, CIMB remains cautious on Johor Bahru’s high-rise residential market.
Based on first-quarter 2026 data from the National Property Information Centre (NAPIC), Johor Bahru already has an existing stock of 108,863 serviced apartment units.
This will be supplemented by another 41,832 units currently under construction and a further 18,712 planned units through 2030 and 2031, raising concerns over potential oversupply should demand fail to keep pace.
UEM Sunrise remains preferred Johor play
Among developers under its coverage, CIMB named UEM Sunrise as its top Johor property pick, maintaining a Buy recommendation.
The research house said the developer is well positioned to benefit from rising land values due to its extensive land bank in Iskandar Puteri and its upcoming Gerbang Nusajaya industrial masterplan, which is expected to be launched in the first quarter of 2027.
Other developers with meaningful exposure to areas surrounding the RTS Link include Eco World Development Group and Mah Sing Group, both of which carry Buy recommendations.
Meanwhile, Sunway Bhd, SP Setia and KSL Holdings also stand to benefit from increased cross-border connectivity, although CIMB maintains Hold ratings on the first two companies.
The research house also noted that the introduction of the new Kuala Lumpur-Johor Bahru Sentral Electric Train Service (ETS) has improved connectivity within Johor, creating fresh development opportunities beyond Johor Bahru.
This is expected to benefit Matrix Concepts Holdings, which has a Buy recommendation, through its Bandar Seri Impian township in Kluang.
