KUALA LUMPUR, Jan 7 – The signing of the Johor-Singapore Special Economic Zone (JS-SEZ) agreement will profound implications for real estate markets in both countries, according to Juwai IQI co-founder and Group CEO Kashif Ansari.
Ansari explained that the SEZ is expected to attract significant foreign direct investment (FDI), stimulating growth in manufacturing, tourism, and real estate, particularly in Johor.
He highlighted that, if both nations fully commit to the project, Johor could see GDP growth of 0.5 to 0.9 per cent, contributing up to RM 20 billion in the short term, and possibly exceeding RM30 to RM50 billion in the long term.
This economic expansion is in line with the International Monetary Fund’s (IMF) forecast, which estimates Malaysia’s 2025 GDP at RM 2.245 trillion, largely driven by massive FDI, particularly from China and the United States.
In terms of real estate, Ansari sees significant growth potential, especially in residential, office, industrial, and logistics markets, with demand expected to rise as businesses and individuals flock to Johor.
With this demand surge, Johor is expected to see a reduction in its residential property overhang, providing homeowners with the opportunity for value growth.
Ansari further noted that commercial and industrial real estate markets would benefit from the increase in demand, with new projects already receiving strong interest due to their favourable pricing and locations.
A key infrastructure initiative tied to the JS-SEZ is the high-speed rail project linking Singapore and Malaysia, which would gain momentum if the SEZ proves successful in driving regional economic growth.
