Malaysia’s property market in 2024 finished with notable momentum, marked by record deal sizes, a surge in data-centre activity, and a broad-based uplift across industrial, retail, and hospitality segments. Investors redirected attention to Malaysia as a regional hub, capitalising on new infrastructure, policy initiatives, and the country’s deepening links with Singapore and North Asia. The crown jewel of the year was Bandar Malaysia, whose RM12 billion sale signalled a paradigm shift in how big-ticket urban redevelopment projects are perceived in Malaysia’s strategic growth corridors. This article revisits the year’s major deals, the forces driving them, and what 2025 may hold for developers, financiers, and investors across the property spectrum.
2024 Market Momentum: A Year of Robust Activity and Transformative Deals
The first half of 2024 underscored an industry-wide resilience, with property transactions reaching RM105.65 billion, the highest tally in five years and a 23.8% rise from RM85.37 billion recorded in the same period of 2023. This uptick in value reflected a broadening appetite among buyers and developers, as macroeconomic fundamentals improved and confidence returned after the COVID-19 disruption. The National Property Information Centre’s data highlighted not only sustained demand but also a qualitative shift toward megadeals and strategic acquisitions that could reshape long-term growth trajectories for core markets such as Kuala Lumpur, Johor Bahru, Penang, and Klang Valley.
The nine months ended September 2024 built on this foundation, with 311,211 transactions valued at RM162.96 billion—representing a 6% increase in deal count and a 14% expansion in value versus the same period a year earlier (9M2023 logged 293,073 transactions worth RM142.51 billion). This broader activity pattern underscored a market that had regained traction across multiple sectors, supported by improving financing conditions, stabilising macro variables, and the ongoing rollout of major infrastructure initiatives that promised to unlock new value in adjacent land parcels and development-ready sites.
A standout feature of 2024 was the rapid acceleration of data-centre investment. The sector emerged as a key growth driver, buoyed by cloud computing expansion, artificial intelligence deployment, and Malaysia’s strategic location at the crossroads of Asia. Knight Frank Malaysia’s Data Centre Research Report 2024 captured a striking take-up pace: 429 MW of capacity, valued at RM141.72 billion, absorbed in the first ten months of 2024 alone—three times the level of 2023. The data-centre footprint in the country now comprises 54 operational facilities with a total capacity of 504.8 MW, highlighting Johor’s dominance in IT capacity alongside the Klang Valley as the core market, while Sarawak, Negeri Sembilan, and Kedah emerged as new hubs with expanding potential.
Within this context, a number of megadeals and strategic moves shaped 2024’s deal landscape. In addition to Bandar Malaysia, other big-ticket transactions spanned land deals, retail assets, and high-profile hospitality properties. The year’s activity also benefited from planned infrastructure projects that were anticipated to catalyse growth in nearby property sectors. Leading voices in the industry emphasised that Malaysia’s property market benefited from a confluence of domestic momentum and rising interest from international investors, even as some geopolitical tensions and global uncertainties loomed on the horizon.
The year also featured a notable shift in how developers and investment groups approached value creation, with increased emphasis on mixed-use ecosystems, transit-oriented development, and the integration of sustainability, smart-city concepts, and social inclusivity into master plans. This reflected a widespread understanding that the most valuable deals in 2024 were those that could create long-term, defensible platforms for growth by combining commercial viability with resilient demand from both tourism and local occupiers.
Top deals in 2024 spanned several sectors: Bandar Malaysia topped the list as the outright flagship transaction of the year, while landmark retail acquisitions, strategic industrial plays, and high-profile data-centre land deals punctuated the rest of the year’s agenda. These transactions demonstrated how capital was channelling into both iconic city-centre redevelopment and the rising industrial and tech-enabled real estate space. The conversations among market participants consistently pointed to a broader reorientation toward infrastructure-led demand, the emergence of new regional hubs, and a continued emphasis on capital discipline and value capture.
The following subsections break down the year’s most consequential deals and the underlying drivers that shaped them.
Bandar Malaysia: A Landmark Deal and a Catalyst for Urban Transformation
Bandar Malaysia dominated the year’s deal conversation, consistently ranked as 2024’s top deal by the majority of consultants and market observers. In a high-profile transaction, the Ministry of Finance completed a sale of the 486-acre site in Jalan Sungai Besi, Kuala Lumpur—the former Royal Malaysian Air Force base—to KLCC (Holdings) Sdn Bhd (KLCCH), a Petroliam Nasional Bhd (Petronas) unit, for an indicative RM12 billion. The site’s strategic location and its potential to function as an international business hub and a livable, inclusive city underscored the boldness of the undertaking.
KLCCH framed the project as one designed for long-term viability and broad economic benefits. The developer and sponsor highlighted plans to unlock significant economic activity, attract foreign investment, and anchor Malaysia’s standing as a regional real estate powerhouse. The Bandar Malaysia development was conceived as more than a single master plan; it was positioned as a transformational platform that would integrate transportation, commercial, residential, and public space components within a cohesive, sustainable urban fabric. The implications for Kuala Lumpur’s growth trajectory were substantial, as the project promised to redraw the city’s architectural and economic skyline while setting a precedent for the scale and ambition of future urban redevelopment initiatives.
Industry commentary around Bandar Malaysia’s acquisition emphasised the deal’s catalytic potential. Supporters highlighted how the project could accelerate the city’s evolution into a globally competitive metropolis with a smart-city orientation, advanced mobility integration, and a diversified economic base. Critics also urged careful attention to social inclusivity, affordable housing, and the alignment of the project with broader national housing goals and public policy priorities. Yet, the consensus was that Bandar Malaysia had the potential to attract substantial foreign investment, stimulate ancillary economic activity, and reshape the balance of land use in central Kuala Lumpur and its environs.
Key voices from the deal ecosystem weighed in on Bandar Malaysia’s significance. Previn Singhe, founder and group CEO of Zerin Properties, described the transaction as a watershed moment for Malaysia’s real estate market and a clear signal of renewed confidence in the nation’s long-term growth trajectory. He stressed Bandar Malaysia’s strategic location and its capacity to serve as a cross-border gateway, transport, commerce, and lifestyle hub, with the project’s scale expected to attract capital inflows and unlock a broad swath of development opportunities across multiple sectors. He also highlighted the project’s alignment with sustainability and smart-city principles as central to its long-term relevance.
Adzman Shah Mohd Ariffin, CEO and chief real estate consultant of ExaStrata Solutions, echoed the sentiment, underscoring that the Bandar Malaysia acquisition would supply both financial backing and development expertise to unlock the site’s latent potential. He noted that the project’s progress would hinge on integrating social housing within a transit-oriented development framework and balancing affordability with commercial viability. This perspective reinforced the view that Bandar Malaysia would serve as a bellwether for how future large-scale urban projects could harmonise market demands with social objectives.
Industry veteran Tan Ka Leong, group managing director of CBRE | WTW, reflected on the deal as a sign of Malaysia’s rebound from the Covid-19 era, noting the importance of a robust pipeline of development opportunities and a favorable investment climate that could sustain momentum into 2025. He also observed that macroeconomic and geopolitical tensions could influence deal terms, but the Bandar Malaysia transaction remained a landmark that would shape investor expectations and the strategic approach to large-scale urban redevelopment for years to come.
The Rest of the Top 2024 Deals: Signposts Across Sectors
Beyond Bandar Malaysia, 2024 featured a series of notable deals that highlighted the breadth of activity across Malaysia’s property spectrum. KLCC Property Holdings Bhd (KLCCP) completed the acquisition of the remaining 40% equity interest in Suria KLCC from Ocmador (Malaysia) City Retail Centre Sdn Bhd, Port Moresby Investments Ltd, and Bold Peak Sdn Bhd for RM1.95 billion. The completion of this transaction was a major milestone, consolidating ownership of one of Kuala Lumpur’s flagship retail and office precincts and reinforcing KLCCP’s position as a cornerstone of the KL city centre.
In the retail space, Kuok Group’s Singapore-based Allgreen Properties Ltd repurchased the 70% stake in Johor Bahru City Square mall from Singapore’s GIC Real Estate Pte Ltd for RM850 million—a move that underscored confidence in Johor Bahru’s retail market and its potential to serve as a regional shopping and entertainment hub. Tropicana Corp Bhd, meanwhile, sold Tropicana Gardens Mall and Marriott Courtyard Penang to IOI Properties Group Bhd for RM680 million and RM165 million, respectively, with Tropicana Gardens Mall subsequently rebranded as IOI Mall Damansara, signaling a consolidation of regional retail assets under a single ownership umbrella in strategic locations.
Siva Shanker, Rahim & Co International Sdn Bhd chief executive officer, observed that IOI Properties appeared to be on an aggressive acquisition trail, potentially positioning for a broader retail-focused investment strategy or even a REIT-driven expansion. The pattern suggested a trend toward portfolio optimization and scale advantages within Malaysia’s high-growth retail markets.
In the data-centre space, several landmark land acquisitions and development agreements underscored the sector’s rapid evolution. Microsoft Payments (M) Sdn Bhd acquired a pair of industrial parcels in Johor: a 123-acre tract within Eco Business Park VI in Kulai for RM402.3 million and a 1.1 million square foot plot in Pulai for RM132.47 million. These acquisitions complemented an earlier purchase in November 2023 of 2.62 million square feet of land near Pulai, illustrating a sustained and expanding footprint in the southern corridor. The data-centre story continued with Sime Darby Property Bhd’s RM5.6 million lease arrangement for 20 years with Pearl Computing Malaysia Sdn Bhd—an affiliate of Raiden APAC Pte Ltd—set to commence in 2027, following a related estimated RM2 billion deal signed in May. Elmina Business Park in Sungai Buloh, a Klang Valley hub being developed by Sime Darby Property on a 77-acre site, has been described as the region’s largest freehold industrial business hub, with data-centre developments at the core of its long-term strategy.
Sunway Bhd also featured prominently in data-centre land activity, with a 64-acre parcel in Sunway City Iskandar Puteri, Johor, sold to Equalbase Pte Ltd for RM380 million. Bridge Data Centres Malaysia IV Sdn Bhd completed two land acquisitions from Paragon Globe Bhd in Plentong, Johor, for a combined RM337.3 million across a 47.86-acre parcel and a 19.76-acre parcel. These transactions reflected a pattern of large-scale, high-utility land acquisitions designed to support next-generation data-centre campuses in Malaysia’s southern hub and surrounding markets.
On the non-data-centre front, the industrial and high-tech segments demonstrated resilient momentum. BRDB Developments Sdn Bhd’s October acquisition of nine acres along Jalan Semantan in Kuala Lumpur—formerly the Wisma Damansara site—from Selangor Properties Sdn Bhd appeared on multiple lists of top 10 deals, highlighting the importance of redevelopment into high-value office, retail, or mixed-use space in a position near the city’s central business district. The asset represented both a redevelopment opportunity and a symbol of the ongoing capital recycling in Malaysia’s premium urban cores.
Another notable land transaction involved Senibong Island Sdn Bhd’s June purchase of a 960-acre parcel in Tebrau, Johor, from S P Setia Bhd for RM564 million, signalling continued expansion of Johor’s industrial and residential development footprint. ExaStrata Solutions Sdn Bhd’s Adzman Shah Mohd Ariffin highlighted Radium Development Bhd’s RM458 million acquisition of a 13-acre parcel in Cheras, Kuala Lumpur, as a record price for a leasehold site, underscoring the premium placed on strategic Kuala Lumpur land parcels with long lease horizons.
The REIT sector also had a impactful year, with activity that underscored the sector’s readiness to monetize and recycle assets through listed vehicles. The sale of 163 Retail Park in Mont’Kiara, Kuala Lumpur, with a net lettable area of 255,535 square feet, to Sunway REIT for RM215 million created a new anchor in a well-established high-income retail corridor. Sunway REIT’s additional acquisition of Kluang Mall in August for RM158 million reinforced its footprint in fast-growing regional markets, while KIP REIT’s (KL:KIPREIT) RM320 million purchase of DPulze Shopping Centre in Cyberjaya signaled a continued tilt toward strategic owns-and-operates across speculative and anchored shopping destinations.
Axis REIT’s portfolio movements included the sale of a 60-acre industrial complex in the Bukit Raja area of Klang to Amsteel Mills Sdn Bhd for RM313 million and the sale of Axis Steel Centre @ SiLC in Iskandar Malaysia, Johor, for RM162 million, along with Axis REIT’s earlier acquisition of a 67-acre industrial complex and storage yard in Klang for RM351.8 million. These transactions illustrated the high level of liquidity and risk-adjusted appetite among listed real estate investment vehicles, particularly in the industrial and logistics niches that underpinned Malaysia’s manufacturing and e-commerce supply chains.
In the hospitality space, notable deals included the sale of 16 floors within Tower 2 of Oxley Towers KLCC—encompassing 14 floors of luxury hotel rooms and two floors of hotel facilities—a landmark entry marking Langham Hotel’s expansion into the Malaysian market. The Langham Hospitality Group’s RM250 million investment (approximately RM1.26 million per hotel key) for a 198-room property signalled confidence in Kuala Lumpur’s appeal as a premium hospitality destination and reinforced the strategic role of luxury assets within Malaysia’s tourism and business travel ecosystem.
Sizzling Data Centre Sector and Complementary Non-Data Centre Deals
The data-centre segment stood out not only for its rapid asset creation but also for its breadth of related land transactions and leasing activity. The Microsoft land acquisitions, while technically industrial in nature, underscore the synergy between technology infrastructure, real estate, and regional economic development. The scale of Microsoft’s investment—coupled with Sime Darby Property and Sunway’s land plays—demonstrates Malaysia’s rising prominence as a data-centre hub. The aim, as articulated by market participants, is to establish Malaysia as a low-cost, resilient, and scalable platform for cloud and AI workloads that can serve regional demand from Singapore, Malaysia’s near-neighbour in the fintech and digital economy space, and broader North Asian markets seeking proximity to manufacturing supply chains.
Beyond data centres, the industrial and logistics sector benefited from both domestic demand and foreign direct investments. High-tech industrial parks, manufacturing facilities, and warehousing assets remained attractive to investors seeking long-tenured income streams and reliable occupancy. The BRDB land deal on Jalan Semantan and Senibong Island’s Tebrau acquisition illustrated how strategic sites near major transportation nodes, port access, and rail links could be transformed into mixed-use or industrial campuses capable of supporting a broad range of tenants—from global manufacturers to regional distribution platforms and digital infrastructure operators.
The Retail and REITs Play: Transformations in Ownership and Portfolio Strategy
The retail landscape in 2024 reflected a dynamic interplay between asset repositioning, portfolio optimization, and the strategic build-out of regional shopping destinations. The Moonshot-like Bandar Malaysia project reinforced the sense that integrated, mixed-use developments with premium retail components could anchor a city’s next phase of growth. Within this context, KLCCP’s Suria KLCC stake consolidation and Allgreen’s stake re-entry in Johor Bahru City Square pointed to a broader trend of consolidating iconic assets into scale platforms via balance-sheet strength, enabling greater resilience against cyclical downturns and stronger leverage for future redevelopment.
In tandem with asset consolidation, the REIT market demonstrated active portfolio management and the pursuit of yield-enhancing acquisitions. The Sunway REIT purchases—Kluang Mall and 163 Retail Park—were emblematic of a broader strategy to diversify across geography while preserving occupancy quality and tenant mix. The acquisition of DPulze Shopping Centre by KIP REIT and Axis REIT’s strategic disposals and acquisitions highlighted a market where REITs continued to play the role of capital allocators and value creators, financing further growth through sale-leaseback strategies, acquisitions of under-owned assets, and the reinvestment of capital into higher-conviction opportunities.
The hospitality segment also benefited from a renewed tourist draw and ongoing investments in premium assets. The Langham project, the premium hotel expansion, and related repositioning activity signaled a broader industry recovery as travel demand rebounded. Market observers cited the revival of international tourism and domestic leisure travel as critical supports for hotel occupancies and average daily rates, reinforcing the case for selective acquisitions and asset repositioning in key destinations such as Kuala Lumpur, Penang, and Johor Bahru.
2024’s Market Pulse: What It Signified for 2025
Across sectors, 2024’s deal dynamics indicated a market in transition—from post-pandemic normalization to strategic growth through infrastructure-led development, data-centre capacity expansion, and the consolidation of high-value, mixed-use assets. Several themes emerged as persistent catalysts for 2025: continued data-centre investment, cross-border demand driven by Singapore’s market proximity, the acceleration of transit-oriented development linked to RTS and JS-SEZ initiatives in Johor, and a renewed emphasis on ESG-aligned development that blends affordable housing with premium commercial and hospitality components. The year’s top deals served as proof points that well-located assets with strong tenant demand profiles and the potential for speculative growth could command substantial valuations and attract international capital seeking a balanced risk-return profile.
With Bandar Malaysia as a flagship example, market participants anticipated a pipeline effect for other large-scale projects and the broader city-centre regeneration narrative. Observers noted that how planners balance inclusivity with market viability would become a central theme in 2025, influencing everything from master planning and density to the integration of social housing within transit-oriented corridors. The year’s data-centre activity also suggested that Malaysia could become a more attractive destination for global technology players seeking reliable, scalable, and cost-efficient infrastructure to support digital economies across Southeast Asia.
2024 Sector Deep Dive: Data Centres, Land, and Industrial Momentum
The data-centre segment stood out as the standout growth engine of 2024, while land deals, industrial properties, and high-tech facilities formed the backbone of the year’s non-data-centre activity. The intensity of land-related transactions and the scale of purchases by multinational and regional players underscored the market’s appetite for strategic locations that promised long-term value.
Data Centre Transactions: Scale, Location, and Strategic Rationale
Malaysia’s data-centre market demonstrated a rapid evolution in both scale and sophistication. The first-order dynamic was the surge in demand for capacity to support cloud services, AI workloads, and enterprise IT consolidation. A number of high-profile land acquisitions by global and regional players signalled strong confidence in Malaysia’s ability to host next-generation data-centre campuses.
Microsoft Payments (M) Sdn Bhd’s strategic land purchases in Johor—one parcel of 123 acres in Eco Business Park VI, Kulai for RM402.3 million, and another 1.1 million square-foot parcel in Pulai for RM132.47 million—stood out as a clear signal of the company’s commitment to expanding regional data-centre infrastructure. The earlier November 2023 acquisition of 2.62 million square feet of land near Pulai complemented these moves, illustrating a multi-timing approach to site selection and capacity expansion that could support a sizeable data-centre presence in southern Johor.
Sime Darby Property Bhd’s data-centre related activities also drew attention. The company announced a RM5.6 million 20-year lease to Pearl Computing Malaysia Sdn Bhd, with a commencement in 2027, following an approximate RM2 billion deal in May. This lease and related facilities in the Elmina Business Park in Sungai Buloh, which is positioned as Klang Valley’s largest freehold industrial hub, underscored the synergy between industrial real estate and data-centre ecosystems. The land banking and lease-back arrangements highlighted a broader industry trend toward monetizing capital-intensive data-centre sites through long-tenured arrangements, thereby generating durable cash flows for developers and REITs exploring alternative income streams.
Sunway Bhd’s involvement in data-centre land was equally prominent. The company sold a 64-acre tract in Sunway City Iskandar Puteri, Johor, to Equalbase Pte Ltd for RM380 million, reinforcing Johor’s standing as a hub for data-centric investment and underlining the role of strategic land parcels in enabling future data-centre campuses. Bridge Data Centres Malaysia IV Sdn Bhd’s purchase of RM337.3 million worth of land from Paragon Globe Bhd in Plentong—across two parcels of 47.86 acres and 19.76 acres—further highlighted the concentrated and expanding footprint of data-centre developers seeking ready-to-develop or near-term development land.
Notably, the broader data-centre ecosystem also encompassed long-term lease arrangements and near-term build-outs in other parts of Malaysia. CBRE | WTW’s market commentary stressed the ongoing trend of rapid capacity expansions, with developers seeking to capitalize on Malaysia’s comparatively lower development costs, skilled labor pool, and favorable regulatory environment to attract enterprise tenants and cloud-service providers that require scalable, low-latency infrastructure.
High-Value Non-Data Centre Transactions: Industrial, Land, and Retail Assets
Beyond data centres, 2024’s top deals reflected a robust appetite for land and large, well-located assets. BRDB Developments Sdn Bhd’s October acquisition of the Jalan Semantan site (formerly Wisma Damansara) from Selangor Properties Sdn Bhd stands out as a prime example of redevelopment potential, given the asset’s iconic status and its proximity to major commercial nodes. The redevelopment premise anticipated the transformation of an aging asset into a flagship space that could host premium offices, retail, or mixed-use components, while the redevelopment of adjacent Pavilion Damansara is expected to reshape Jalan Semantan’s landscape, delivering new urban value.
Senibong Island Sdn Bhd’s RM564 million purchase of a 960-acre Tebrau land parcel highlighted strategic expansion within Johor’s development corridor, aligning with regional growth expectations and the state’s infrastructure improvements. Radium Development Bhd’s RM458 million acquisition of a 13-acre Cheras parcel marked another high-price land transaction in Kuala Lumpur that reflected the premium associated with land near established residential and commercial clusters and with a long lease horizon that could underpin future asset repositioning.
The retail sector’s move toward consolidation and expansion was mirrored in major REIT activity. The sale and acquisition of iconic retail spaces—such as 163 Retail Park in Mont’Kiara and Kluang Mall in Johor—illustrated a broader market trend toward capital recycling through REIT structures and strategic asset acquisitions. These deals underscored the importance of occupancy, tenant diversity, and location-specific demand drivers in sustaining retail profitability amid evolving consumer patterns. The trend toward larger, more diversified retail portfolios was reinforced by additional transactions involving DPulze Shopping Centre in Cyberjaya and the acquisition activity by Pavilion REIT, all aimed at bolstering resilience against competitive pressures and macro volatility.
2025 Outlook: What Experts Expect and How Deals Could Evolve
As 2024 closed, market participants turned their attention to 2025, with industry observers outlining a constructive outlook underpinned by improving macro conditions, ongoing infrastructure projects, and the continued evolution of Malaysia’s data-centre ecosystem. Several core themes emerged from expert commentary that could shape the year ahead:
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A steady baseline of property-market growth supported by positive fundamentals and policy support, with the Klang Valley expected to see heightened industrial activity, particularly in warehousing and logistics, while northern hubs such as Seberang Perai and Kulim emerged as industrial investment hotspots thanks to advantageous geography and infrastructure.
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The sustained expansion of data-centre capacity, with continued interest from North Asian and Western technology players seeking regional footprints. The proximity to Singapore, combined with Malaysia’s cost advantages and robust infrastructure, could fuel a steady stream of land acquisitions, power and cooling facilities, and long-term leases or sale-leaseback arrangements.
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Johor’s development trajectory to be reinforced by the Johor-Singapore Special Economic Zone (JS-SEZ), the RTS corridor linking Johor Bahru to Singapore, and the evolving Forest City framework. The combination of these pillars could accelerate land banking activity, attract technology-driven tenants, and support a broader ecosystem of manufacturing, distribution, and high-tech occupancies.
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The emergence of new REITs and the continued expansion of existing REIT platforms as investors seek to monetize and reallocate capital, with helpful implications for retail, hospitality, and mixed-use sectors. The sale-and-leaseback model, in particular, could gain traction as firms seek liquidity for reinvestment in high-growth platforms or yield-enabled assets.
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The hospitality and tourism rebound to sustain investor interest in premium assets in gateway cities and leisure destinations, especially with Malaysia’s Visit Malaysia 2026 initiatives and other government-backed tourism programs likely to bolster occupancy and visitor spend.
Leading voices emphasised that 2025 would require policymakers and market participants to collaborate on ensuring that growth is inclusive and sustainable. In particular, there was an emphasis on balancing social housing needs within large-scale transit-oriented developments to preserve socio-economic equity and resilience. The market’s confidence would hinge on a stable macro environment, a well-structured regulatory framework, and the ability to translate infrastructure investments into tangible urban and economic value.
Expert Perspectives on 2025 Deal Dynamics
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Previn Singhe highlighted a bright outlook for the year, particularly for data-centre transactions emanating from North Asia and hospitality deals in key Malaysian markets like Klang Valley, Johor, and Penang. He also flagged the need to review MM2H requirements to sustain foreign investor interest and ensure the policy environment remains attractive to global capital.
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Adzman Shah Mohd Ariffin anticipated more repurposing and refurbishment of dated commercial assets in prime locations, alongside a growing pipeline of sale-and-leaseback transactions, especially involving REITs. He viewed this as a practical strategy for freeing up corporate capital while preserving operational control, aligning with the rising demand for flexible, high-tech industrial spaces with long lease tenures and attractive yields.
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Tan Ka Leong predicted a significant dealmaking trajectory in 2025 driven by strategic opportunities across heritage development in Kuala Lumpur’s city centre, anchored industrial deals near ports in the Klang Valley, and a continued emphasis on land-banking by leading developers to capitalise on ongoing infrastructure projects and market conditions.
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Jamie Tan of JLL Malaysia pointed to the potential injection of Paradigm Mall assets into a REIT as a notable 2025 move, with the possibility that three Paradigm malls could be consolidated into a new Paradigm REIT. This would reflect a broader industry trend toward portfolio-level optimization in a way that could unlock scale and improve liquidity for investors.
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Stanley Toh of LaurelCap emphasised Pavilion REIT’s investment activity as a bellwether for anticipated 2025 deals, citing the RM480 million Pavilion Hotel and Banyan Tree Kuala Lumpur Hotel acquisitions as indicators of a persistent appetite for premium hospitality assets with strong branding and occupancy potential.
These expert voices collectively underlined the belief that 2025 would build on 2024’s momentum, with a refined focus on value creation through strategic asset repositioning, redomiciliation of assets into REITs, and a continued emphasis on infrastructure-led growth that unlocks new markets and occupancy drivers.
Regional Focus: Penang, Johor, Klang Valley, and Northern Growth Corridors
Penang and Johor remained central to 2024’s growth narrative, with Penang’s hospitality and industrial prospects drawing attention from developers and investors alike. The Penang Island development opportunity around the Penang Turf Club site signified a high-profile bid for premium, mixed-use or luxury residential schemes that could redefine George Town’s waterfront and surrounding areas. The Penang Island site’s size at 202 acres and its strategic location near the island’s most prestigious precinct heightened expectations that the winning bidder would orchestrate a transformative project capturing luxury living, cultural experiences, and premium retail components that align with Penang’s status as a global tourism and investment magnet.
Holiday Inn Penang, managed by Knight Frank, also attracted attention as a potential premier asset in Batu Ferringhi, where redeployment and redevelopment could leverage Penang’s robust tourism ecosystem. The asset’s beachfront location and proximity to high-value visitor markets positioned it as a candidate for redeployment into a premium hospitality and mixed-use complex that would appeal to both international and domestic guests.
Ann Joo Resources Bhd’s 100-acre Prai land parcel was highlighted by industry observers for its strategic location and potential for industrial and mixed-use development. Prai’s connectivity to major transport corridors and its proximity to Penang’s industrial clusters could unlock significant value through a phased redevelopment program.
Johor Bahru’s growth trajectory remained intact thanks to the RTS corridor, the JS-SEZ initiative, and the Forest City framework. These projects were expected to catalyse data-centre capacity expansion, industrial development, and mixed-use urban growth, with a pipeline of potential large-scale deals that could redefine Johor’s position within Malaysia’s regional growth map.
In the Klang Valley, land consolidation, redevelopment of iconic properties, and the emergence of new industrial and logistics hubs signalled a continued structural shift toward multi-use campuses and modernised urban cores. The region’s proximity to Singapore and its established connectivity offered a powerful value proposition for developers seeking to monetise cross-border demand, particularly in data-centre, warehousing, and manufacturing real estate.
Northern regions such as Seberang Perai and Kulim were identified as emerging hotspots for industrial investment, supported by policy initiatives, ports, and industrial park development. The combination of strategic location, infrastructure investment, and supportive ecosystems suggested a longer-term upside for industrial real estate in these northern corridors, even as the market balanced supply and demand equilibria across the country.
Conclusion
The year 2024 stands out in Malaysia’s property market for its breadth of deal activity, the scale of megadeals, and the emergence of a clear data-centre-led growth narrative. Bandar Malaysia served as a capstone deal that underscored the market’s belief in large-scale urban renewal as a transformative driver of economic activity, transport integration, and sustainable urban living. The year’s other notable transactions across land, retail, hospitality, and industrial segments demonstrated a market capable of capital recycling, portfolio optimization, and the creation of long-duration value through strategic asset positioning and asset-backed financing.
Looking ahead to 2025, market participants expect continued growth, anchored by infrastructure development, policy clarity, and the evolution of Malaysia into a leading regional hub for data-centric industries, logistics, and high-value retail and hospitality assets. The anticipated deals—ranging from Penang’s high-profile land opportunities to Paradigm REIT’s potential asset consolidation, and from repurposing dated office stock to burgeoning data-centre campuses—point to a year of selective, quality investments rather than broad, undifferentiated expansion. The successful execution of these deals will depend on maintaining a prudent balance between economic viability and social inclusivity, aligning with long-term urban sustainability goals, and ensuring that fiscal and regulatory environments remain conducive to foreign and domestic capital.
For investors, developers, and policymakers, 2025 offers substantial opportunity to accelerate Malaysia’s growth story by translating landmark deals into durable economic value, resilient job creation, and enhanced regional competitiveness. As the market continues to evolve, stakeholders will be watching closely how new infrastructure, data-centre capacity, and mixed-use developments integrate with social housing, transport systems, and environmental objectives to deliver inclusive, sustainable urban growth for the decades ahead.