The newly built Kulai train station as part of the Gemas-Johor Baru Electrified Double Track Rail Project (Gemas-JB EDTP). There are 11 newly built train stations in Johor for the project. — THOMAS YONG/The Star

JS-SEZ, railroad transportation expected to drive demands in residential properties

The name Kulai in Johor evokes an industrial hub with proximity to the Senai airport, especially in recent years as Sedenak in Kulai became the choice location for data centres. Minted as a flagship zone of JS-SEZ and with a station allocated for the Gemas-Johor Bahru Electrified Double-Track Rail Project (EDTP), the future of Kulai augurs well for its population of 300,000. 

Welcoming the initiative, IOI Property Group (IOIPG), developer of the Bandar Putra Kulai and IOI Industrial Park said the area is poised to benefit from improved connectivity and ease of doing business under the JS-SEZ.

“The JS-SEZ establishes a hub for high-value investments with attractive tax incentives which include special corporate tax rates and special tax rates for knowledge workers. We expect significant job creation, higher disposable income and increased leisure and retail activities from industrial investments,” IOIPG southern region property segment chief operating officer Lim Beng Yeang.

Lim is also excited about the EDTP and the new Kulai Railway station, the latter of which connects Kulai to the city centre.

“The EDTP will be a catalyst in positioning Johor as a rail hub in Malaysia, as the state government aims to fully optimise the double rail track by introducing a commuter train service that connects Kulai to JB Sentral, expected to be introduced by 2027 or 2028. This enhanced connectivity will significantly improve access between Kulai, Johor Bahru and beyond, making our township more accessible for both residents and investors,” he enthused.  

“(Meanwhile), the new Kulai Railway station was completed recently and opened to the public in March. It is about 10 mins drive time from Bandar Putra, offering our residents easy connectivity to Johor Bahru Sentral and the Rapid Transit System Link (RTS) connects Johor Baru and Singapore,” he added.

Thriving residential scene 

According to Knight Frank Johor director Lee Kun Thye, the residential market in Kulai has demonstrated strong resilience, supported by demand for landed properties. 

“The district of Kulai has demonstrated a resilient and active residential market over the past few years, supported by steady demand for landed properties, particularly two- to three-storey terraced houses, which have consistently recorded the highest share of residential transactions. This property type remains the top choice among family-oriented buyers, valued for its affordability, larger built-up areas and efficient layouts,” she said.

Citing Napic, Lee said from 2020 to 2024, the two- to three-storey landed units consistently accounted for between 38.0% and 41.7% of annual residential transaction volumes. The area has also seen a rise in transacted prices, indicating a growing market resilience.

“In 2020 and 2021, the majority of two- to three-storey terraced house transactions in Kulai fell within the RM200,001 – RM500,000 price range, likely due to cautious spending amid the economic slowdown during the Covid-19 pandemic,” she said.

“Since 2022, transaction prices have shifted upward, with most transactions occurring within the RM400,001 – RM700,000 range, indicating a gradual price recovery and strengthening market confidence. By 2024, this upward trend persisted, with more transactions reaching up to RM800,000. This suggests a growing buyer preference for higher-value landed homes, possibly driven by improved market sentiment in Johor, alongside inflationary pressures such as rising construction and land costs,” she added. 

New launches in Kulai also reflect the market demand as well as the uptick in prices, Lee said. 

“In the past three years (2022–2024), the most launched property type in the Kulai district was the two- to three-storey terraced houses, based on NAPIC data. A total of 1,076 units were launched, making up 35.4% of all residential launches during this period. This aligns with strong market demand, as this property type also recorded the highest volume of residential transactions over the past three years. 

“Townhouses were the second most launched property type, with a total of 822 units (27.0%), followed by single-storey terraced houses with 505 units launched (16.6%). The focus on multi-storey terraced houses and townhouses suggests that developers are responding to buyer preferences for landed family-oriented homes while also optimising for higher development margins through increased built-up areas,” she elaborated.

“The majority of two- to three-storey terraced house launches in Kulai were priced between RM700,000 and RM800,000 per unit, accounting for 46.3% to 79.2% of launches within this category from 2022 to 2024. The growing concentration in this upper-mid price band over the review period suggests a shift toward higher-end offerings, likely driven by rising construction and land costs, as well as strong demand for larger landed homes,” she added.

“Overall, the residential market in the Sedenak-Kulai flagship zone is poised for sustainable long-term growth, with landed homes likely to remain the preferred property type. Moving forward, improved infrastructure, policy initiatives and regional economic drivers like the JS-SEZ will play key roles in shaping residential demand patterns,” Lee opined.

More demands expected

Lim (centre) poses at the Bandar Putra Kulai township master plan model located in IOI Galleria Kulai.

Lim anticipates growing demand for properties in Kulai catalysed by the RTS and JS-SEZ. 

“The RTS will likely spur commercial and retail developments in surrounding areas due to the high volume daily ridership of about 40,000 passengers. With increased business activities and consumer traffic, property values for commercial real estate are also expected to rise,” he said.

“At Bandar Putra Kulai, our strength lies in being a township developer with over 30 years of proven experience — one of the key differentiators that sets us apart in the market. Due to our sheer land bank in Bandar Putra Kulai, we offer a diverse range of residential products designed to meet the evolving needs of homebuyers — from first-time buyers to those looking to upgrade, particularly within the M40 segment,” he added. 

“To date, we have completed and handed over more than 17,000 residential and commercial properties in Bandar Putra Kulai. Our township is multi-generational as we have many of our first generation home owners’ children buying new homes here to be close with their parents, relatives and friends,” he said, adding that IOIPG's core offering includes single-storey and double-storey terrace homes, cluster homes, semi-detached houses and bungalows. 

Rezoning industrial land

Lim also said that IOIPG will refocus on its industrial segment in light of more industrialisation expected in Kulai. 

“To capitalise on the tremendous growth potential in the industrial sector following JS-SEZ, we are re-zoning part of our land bank of over 3,500 acres in Bandar Putra Kulai to expand our industrial park size to 1,100 acres.  This is to position ourselves as a large integrated well-designed and customised industrial park within a guarded community complete with shops, dormitory and parks. 

“This industrial park is adjoining the Bandar Putra Kulai township and will provide us the edge in terms of access to a ready working population, a good network of infrastructure connectivity, an abundance of township amenities and public facilities, which includes our IOI Mall for shopping, an 18-holes Palm Villa golf course and a 140-acre town park for leisure and recreational activities,” he elaborated. 

Lim also said that the industrial park is well prepared to cater to the demands of multinationals and their supply chain, and his team has engaged with many regional investors from sectors such as food manufacturing, solar inverters, batteries, R&D facilities, hyper-scale data centres and logistic companies. 

IJM Land, developer of Austin Duta and Nasa City in Tebrau, east of Kulai, also look to capitalise on the opportunity that JS-SEZ will bring. 

“Our Austin Duta township will be completed soon, in the next two to three years. Therefore, we are on the lookout for potential development land for continuity and further expansion. Our Nasa City development is already well-positioned in growth corridors that benefit from enhanced connectivity and infrastructure plans,” said southern region senior general manager Soh Wai Fong.

“At the same time, we’re identifying strategic locations with strong cross-border potential, especially those backed by solid infrastructure and long-term growth prospects. All of these ties back to our aim of positioning ourselves early in high-potential areas and delivering developments that grow alongside regional demand,” he added. 

The residential market in the Sedenak-Kulai flagship zone is poised for sustainable long-term growth, said Lee.

IJM Land is on the lookout for potential development to capitalise on JS-SEZ.

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