KUALA LUMPUR: Interest in Johor property market has been rejuvenated by rising industrial and data centre demand, potential revival of the Kuala Lumpur-Singapore High Speed Rail (HSR) and the setting up of a Johor-Singapore special economic zone (SEZ).
Analysts at Affin Hwang Capital who visited the state recently gathered that property developers were more optimistic about the market's long-term outlook.
This is fuelled by rapid infrastructure development such as the Johor Bahru-Singapore RTS Link, while new projects include Johor Bahru LRT.
"The good work progress (52 per cent complete and on track to commence operation in early-2027) for the RTS Link has improved property buyers' confidence and long-term growth prospects.
"On-going government-to-government negotiations to set up the proposed SEZ is also fueling the optimism on the Johor property market,' Affin Hwang said today.
Besides the RTS, on-going infrastructure projects in Johor include the Gemas-Johor Bahru double tracking and Iskandar Malaysia bus rapid transit.
"If new projects (such as Johor Bahru LRT) are implemented, public transport connectivity and efficiency will improve in the long run.
"IJM Corp Bhd won the Immigration, Customs and Quarantine Complex project for the RTS Link recently, while Sunway Construction Group Bhd (SunCon) is building the elevated viaducts on the Johor side. These contractors are in a good position to win construction works if the Johor Bahru LRT and HSR projects kick off," the firm noted.
Property companies with high exposure to Johor include UEM Sunrise Bhd (not rated), Sunway Bhd (buy) and AME Elite Consortium Bhd (buy), while active construction companies include HSS Egineers Bhd (buy), SunCon (buy), IJM (hold), Kimlun Corp Bhd (not rated) and Ekovest Bhd (not rated).