Malaysia’s Real Estate Revival: Selangor and Johor Steal the Spotlight Malaysia’s residential market is bouncing back post-pandemic, with Selangor and Johor leading the charge. These states are outpacing Kuala Lumpur, thanks to affordability, strategic development, and robust demand. Selangor: A Rising Star Selangor dominated 2023’s property market, accounting for 22% of transactions and 30% of total value, according to Knight Frank. The state’s appeal lies in its affordability, strategic location, and ambitious development plans. Projects like Kwasa Damansara—a 2,260-acre township with 25,000 homes, green spaces, and MRT connectivity—are reshaping the region. Similarly, Sime Darby’s Elmina City, a 5,000- acre wellness-focused township, is attracting buyers with its forest reserves and extensive cycling tracks. The First Selangor Plan 2021-2025 has further boosted the state’s economy, driving MYR14.75 billion in manufacturing investments in the first half of 2023. This growth, coupled with affordable housing initiatives like Rumah Selangorku, has made Selangor a magnet for homebuyers and investors alike. Johor: A Strong Contender Johor is also thriving, ranking second in residential transactions (16.2%) and value (18%) in 2023. Its proximity to Singapore and projects like Forest City and Iskandar Malaysia are key drivers. The upcoming Johor-Singapore Rapid Transit System (RTS) and Special Economic Zone (SEZ) are expected to further boost its appeal. Kuala Lumpur: Mixed Results In contrast, Kuala Lumpur’s property market has struggled with high prices and affordability issues. The average house price in KL is MYR770,543, far exceeding the MYR368,424 budget of most buyers. This has led to slower sales, with only a 1.2% increase in volume but a 7.2% drop in value in the first three quarters of 2023. Tackling Overhang Selangor’s focus on affordable housing is reducing its residential overhang, which fell from 4,500 units in Q3 2023 to 4,228 units in Q4. Johor is also making strides, thanks to strong demand and strategic investments. Outlook for 2024 Experts predict a bright year ahead, with demand for terraced and landed properties rising, supported by government subsidies. Developers are expected to gradually reinvest in urban and suburban housing as confidence grows. Conclusion Selangor and Johor are at the forefront of Malaysia’s real estate resurgence, offering affordability, connectivity, and quality of life. While Kuala Lumpur grapples with high prices, these states are proving to be the future of Malaysia’s property market.