Compare Johor vs Klang Valley for factory rental in 2026 using official NAPIC data. Johor prices surged 42.1%, while Klang offers stable growth and port access. Get expert advice on where to lease.
The National Property Information Centre (NAPIC) data for 2024–2025 paints a clear picture of two dynamic but distinct industrial markets in Malaysia. While both Johor and Klang Valley are experiencing growth, the drivers, price trajectories, and available stock differ significantly.
Johor's industrial market has entered a hyper-growth phase. According to NAPIC data, the state recorded a 44.0% increase in transaction value from RM6,643.69 million in 2024 to RM9,570.19 million in 2025. More strikingly, the average transaction price jumped 42.1% from RM4.18 million to RM5.93 million over the same period. This surge is directly linked to policy catalysts:
New supply also increased by 17.9% (from 168 to 198 units), yet unsold inventory dropped from 1.5% to 1.1%, indicating strong absorption. Transaction volume grew modestly by 1.4% (1,591 to 1,613 units), suggesting that the value growth is being driven by higher-priced transactions rather than sheer volume.
Klang Valley's industrial market, while not experiencing Johor's explosive price growth, is characterised by sustained, high-quality expansion. The market is driven by demand for modern, high-tech, and ESG-compliant assets. Key developments include:
Nationally, the industrial property market has been on a tear. Transaction value surged from RM12.76 billion (4,758 units) in 2020 to RM27.86 billion (8,783 units) in 2024, more than doubling in value in just four years, according to NAPIC. This national tailwind supports both markets.
For owners of industrial properties in the Klang Valley, the NAPIC trends present a clear opportunity. The market is bifurcating between older, standard factories and new, high-specification logistics hubs.
Shah Alam's industrial areas (e.g., Section 15, 23, 26, 27) benefit from mature infrastructure and proximity to the city. However, they face competition from newer, larger-format parks in Klang and Kapar. Owners should highlight advantages like:
The demand for warehouse for rent Klang vs Johor is heavily influenced by logistics networks. Klang Valley, anchored by Port Klang, remains the undisputed logistics hub of Malaysia. According to the Port Klang Authority, Port Klang handled over 14 million TEUs in 2024, making it the 12th busiest port globally. This volume ensures consistent demand for warehousing space within a 20-30 km radius of the ports.
| Feature | Johor Industrial (2025 Data) | Klang Valley Industrial (2025 Data) |
|---|---|---|
| Avg Transaction Price | RM5.93 million (+42.1% YoY) | Lower base, but rising with new projects |
| Transaction Value | RM9,570.19 million (+44.0% YoY) | RM15,011.81 million (Selangor total) |
| Key Driver | JS-SEZ, Singapore spillover | Port Klang, high-tech logistics, ESG demand |
| New Supply (2024-25) | +17.9% | Multiple large-scale parks launching |
| Unsold Inventory | 1.1% (low) | Low, with high pre-lease demand |
| Tenant Profile | Manufacturing, data centres, logistics | E-commerce, 3PL, high-tech manufacturing |
| Factor | Klang Valley (Klang, Kapar, Shah Alam) | Johor (Iskandar Puteri, Pasir Gudang) |
|---|---|---|
| Primary Advantage | Port Klang connectivity, mature ecosystem, lower land cost | JS-SEZ incentives, proximity to Singapore, high growth |
| Typical Rental (Est.) | RM1.50 - RM3.00 PSF (varies by spec) | RM2.00 - RM4.00+ PSF (newer, high-spec units) |
| Best For | 3PL, e-commerce, import/export, FMCG | Electronics, data centres, Singapore-linked MNCs |
| 2026 Outlook | Stable growth, new supply moderates rent spikes | Rapid growth, potential for rent escalation |
| Labour Availability | High, mature urban workforce | Growing, but tighter for specialised skills |
| Infrastructure | World-class port, multiple highways, LRT | Developing, improving with RTS Link |
The outlook for Malaysia's industrial real estate market in 2026 is overwhelmingly positive. The REHDA Institute Industrial Survey Insights reveal that 79% of respondents are optimistic about investor confidence in 2026, up from 72% who were optimistic about the current market. Only 7% are pessimistic.
For businesses that rely on import/export logistics and port access, the Klang Valley remains the superior choice for a factory for rent Klang 2026. The combination of Port Klang's throughput, the new high-spec industrial parks, and a more stable price environment offers lower risk.
For businesses that are Singapore-linked, in high-tech manufacturing, or seeking capital appreciation, Johor presents a compelling, albeit more expensive, option. The Johor industrial land price 2026 trajectory suggests strong future returns, but tenants must be prepared for higher upfront costs.
It depends on your business model. If your operations are heavily reliant on port logistics, import/export, and a mature supply chain, Klang Valley is the better choice due to its proximity to Port Klang and lower average rental rates compared to Johor's surging market. If your business is focused on the Singapore market, high-tech manufacturing, or you want to capitalise on the JS-SEZ incentives, Johor offers higher growth potential but at a higher cost. The NAPIC data shows Johor's average transaction price jumped 42.1% in one year, indicating a rapidly tightening market.
While NAPIC data tracks transaction prices (sales), rental rates for a factory for rent Klang 2026 vary widely based on specifications. Based on current listings and new project benchmarks (e.g., LINX Avenue @ Kapar units priced from RM6.788 million for sale), rental rates for modern, high-spec units typically range from RM1.80 to RM3.50 per square foot. Older, standard factories in areas like Meru or Kapar may be available from RM1.20 to RM2.00 PSF. For a precise figure, it is best to consult current listings on FactoryHub.my.
The Johor industrial land price 2026 is expected to continue its upward trend, driven by the JS-SEZ. Based on the 42.1% increase in average transaction price for industrial properties (which includes land and buildings), land prices in prime locations like Iskandar Puteri, Pasir Gudang, and near the Pengerang hub have risen sharply. Prices can range from RM80 to RM150 per square foot for prime industrial land, with some strategic parcels commanding even higher rates. It is advisable to check the latest transactions via JPPH or consult an industrial property specialist.
The primary advantages of a warehouse for rent Klang vs Johor are:
Yes, rental prices in Klang are expected to see moderate growth in 2026. The national industrial transaction value more than doubled from 2020 to 2024, and investor confidence remains high (79% optimistic). The launch of new, high-spec industrial parks like Setia Alaman and LINX Avenue @ Kapar will set a new price benchmark, pushing up rents for modern facilities. However, the increase is expected to be more stable and gradual compared to the rapid escalation seen in Johor.
The NAPIC (National Property Information Centre) publishes comprehensive data on property transactions, including the industrial sector. While there isn't a single "factory price index," NAPIC tracks transaction volume, value, and average prices. The data shows that Malaysia's industrial property market has been on a strong growth trajectory, with national transaction value surging from RM12.76 billion in 2020 to RM27.86 billion in 2024. For the most current NAPIC factory price index Malaysia data, you can visit the official JPPH website.
The data is clear: both Johor and Klang Valley offer unique advantages for industrial tenants in 2026. Johor is the high-growth, high-cost play driven by the JS-SEZ. Klang Valley is the stable, logistics-centric powerhouse with a wave of new, modern industrial parks launching.
Choosing between a factory for rent Klang 2026 and a Johor-based facility requires a detailed analysis of your logistics network, labour needs, and budget. Don't navigate this complex decision alone.
Contact our industrial property specialists today for personalised advice.
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