Gold Li shifts strategy to Johor's secondary towns amid high-rise oversupply concerns

KUALA LUMPUR: Amid growing concerns over oversupply in Johor's residential market, particularly in the high-rise segment, Gold Li Holdings Bhd is shifting its focus away from saturated urban hotspots and doubling down on what it sees as a more sustainable opportunity in the state's underserved secondary towns.

According to its prospectus, launched today ahead of its listing on the ACE Market of Bursa Malaysia, the developer is positioning itself as a regionally anchored player with deep exposure to Muar, Tangkak and Batu Pahat, markets it argues are fundamentally different from Johor Baru's speculative-driven landscape.

While Johor Baru has long been associated with high-rise oversupply and investor-led demand, Gold Li remains anchored by landed residential developments targeted at local buyers, upgraders and working families.

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The property developer remains focused on landed properties such as terrace homes, semi-detached units and bungalows where demand is more closely tied to affordability and local household formation.

Gold Li's focus has allowed the company to avoid the oversupply pressures seen in Johor Bahru where the high-rise market has been weighed down by years of aggressive launches and speculative investment activity.

In contrast, the company's focus areas of Muar, Tangkak and Batu Pahat remain structurally different markets, with lower exposure to speculative demand and stronger owner-occupied cores.


However, the developer is preparing a strategic shift. While historically focused on landed properties, it plans to launch its first high-rise project in Muar, a 599-unit apartment development with an estimated gross development value (GDV) of RM400 million, targeted for 2027.

The planned project is set to become the core behind Gold Li's central thesis of secondary towns such as Muar remaining underserved.

Chief financial officer Tey Bock Heng said Muar has not seen a meaningful new high-rise residential launch in almost a decade, leaving a gap in the market for modern apartment living.

This, he said, makes Muar's high-rise segment underpenetrated rather than oversupplied.

To date, the company has completed up to 110 projects, with a remaining development pipeline valued at approximately RM854.9 million in GDV, underscoring its long-term growth ambitions in Johor's secondary property corridors.

Gold Li is aiming to raise up to RM15.21 million ahead of its listing, with RM11.2 million allocated to fund three ongoing developments and one future project.