Malaysia’s Commercial Land Market Heats Up: Key Hotspots in 2025
The escalating US-China geopolitical rivalry and global supply chain diversification are quietly reshaping Southeast Asia’s property market. At the heart of this transformation, Malaysia is emerging as a major winner—especially in the vacant commercial land sector.
Driven by investor-friendly initiatives, special economic zones, and digital infrastructure rollouts, commercial land transactions in Malaysia surged 22.7% to 3,340 units in 2024, while transaction value soared 200% year-on-year (YoY) to RM14 billion, according to NAPIC data.
Let’s explore where investor attention is heading, and why Johor, the KL suburbs, and Penang are shaping up as Malaysia’s next major development frontiers.
Johor Bahru: Supercharged by the JS-SEZ
The launch of the Johor-Singapore Special Economic Zone (JS-SEZ) has triggered an explosion of commercial land activity in Johor Bahru (JB). NAPIC data shows a staggering 800% increase in transaction volume, with RM1.17 billion worth of land changing hands in 2024 alone.
Strategically located near the Rapid Transit System (RTS) Link and Singapore’s border, downtown JB is seeing land prices reach RM1,000–RM1,400 psf.
📌 Emerging investment zones in Johor:
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Nusajaya and Kempas Tech Park: Anchoring RM15 billion worth of green data centre development.
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Iskandar Puteri (west) and Permas Jaya (east): Offering more affordable land at RM200–RM400 psf, these areas appeal to developers planning for future logistics hubs, showrooms, and mixed-use commercial centers.
With improved transport access and foreign interest pouring in, JB’s commercial landscape is undergoing a generational shift.
Klang Valley: KL Core Slows, Suburbs Surge
Kuala Lumpur’s commercial land market saw a 16.4% decline in volume in 2024, but a stunning 1,734% increase in value, largely due to mega transactions such as the RM4 billion Bandar Malaysia deal in Jalan Sungai Besi.
However, the real story lies in the Selangor suburbs, where transaction volume rose 48.4%, reaching RM2.4 billion in value.
📍 Key suburban hotspots:
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Setia Alam: Rapid population growth and integrated townships.
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Semenyih: From quiet town to property magnet, thanks to developments by EcoWorld and SP Setia.
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Teluk Panglima Garang: A Free Trade Zone (FTZ) between Klang and Banting, ripe for industrial-commercial integration.
💡 Land prices in these growing zones range from RM120–RM160 psf, offering affordable entry for developers looking to capitalise on urban spillover demand.
Penang: Batu Kawan Rises as the Northern Growth Anchor
Though Penang’s commercial land transactions fell 37.3% by volume in 2024, values jumped 122.1%, confirming sustained investor confidence. The Batu Kawan Industrial Park (BKIP) continues to attract multinational corporations in high-tech manufacturing and logistics.
📈 Land prices:
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Batu Kawan: RM200–RM500 psf
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Island hotspots (George Town, Gurney, Jelutong): RM700–RM1,000 psf
With the Penang LRT Mutiara Line, airport expansion, and a strong digital push, the northern region is aligning itself with Malaysia’s low-carbon, export-driven future.
KLCC and Bandar Malaysia: Urban Redevelopment Adds Pressure
Urban redevelopment under the newly gazetted Kuala Lumpur Local Plan 2040 (KLLP2040) is set to reshape inner KL. Landmark transactions, including 16 plots acquired by KLCC Holdings in Bandar Malaysia, indicate that while land is limited, redevelopment interest remains high.
🏙️ Key takeaway: Investors are betting on large-scale transformation zones and vertical redevelopment opportunities in Bukit Bintang, Mont’Kiara, and Old Klang Road, despite limited supply and high prices (up to RM2,700 psf).
Outlook: From Land Banking to Long-Term Value Creation
The 2024 surge in commercial land transactions—especially in high-growth corridors like JB, Selangor, and Batu Kawan—signals a shift from speculative land banking to infrastructure-aligned, ESG-conscious development.
What’s driving this?
✅ Data centre demand and digital infrastructure
✅ Transport mega-projects (RTS, LRT, HSR revival buzz)
✅ Urban renewal frameworks (URA, KLLP2040)
✅ SST exemption for HDA-governed residential buildings
✅ Strong GDP growth and improved WCR competitiveness ranking (23rd globally)
Final Thoughts
As Malaysia cements its place as a supply chain alternative to China, the commercial land market offers rare opportunities for investors with foresight.
For developers and institutional buyers, Johor’s JS-SEZ corridor, KL’s suburban belts, and Penang’s BKIP are proving to be not just land plays, but strategic bets on Malaysia’s transformation.
