Understand the key differences between industrial, commercial, and mixed-use land in Malaysia—covering use rights, pricing, investment yield, and development guidelines.
Introduction
Malaysia's property market offers various land types for investment—but choosing the right one depends on your development goals and compliance strategy.
This blog compares industrial, commercial, and mixed-use land in Malaysia, helping you make informed decisions based on usage rights, development rules, price ranges, and investment returns.
1. Industrial Land
Purpose:
Used for manufacturing, assembly, warehousing, logistics, and factory operations.
Examples:
Factories in Shah Alam, Senai, and Meru. Logistic hubs near Port Klang or the ECRL.
Zoning Code: Tanah Perindustrian
Key Features:
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Heavier building footprint allowed
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Higher power supply (TNB)
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Need compliance with DOE (Jabatan Alam Sekitar) for certain activities
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May include fire-fighting tanks, lorry access roads, etc.
Typical Price Range:
RM30–RM180 per sq ft (depending on location and infrastructure)
Yield Potential:
Medium to High (especially with logistics tenants)
2. Commercial Land
Purpose:
For business activities—such as shoplots, office buildings, malls, showrooms, hotels.
Examples:
Retail buildings in SS2, Bukit Bintang, or Setia Alam; SOHO units or serviced residences.
Zoning Code: Tanah Perniagaan
Key Features:
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Good visibility and access
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Allows retail, F&B, office, and hospitality
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Often located in strategic high-traffic areas
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Parking & accessibility are critical
Typical Price Range:
RM150–RM1,500 per sq ft (city centre vs suburban)
Yield Potential:
High in prime or matured locations, volatile in oversupplied areas
3. Mixed-Use Land
Purpose:
Zoned for integrated development combining residential, commercial, and sometimes light industrial uses.
Examples:
Developments like Eco Ardence, Gamuda Cove, TRX, or township masterplans.
Zoning Code: Pembangunan Bercampur / Mixed Development
Key Features:
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More flexible development rights
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Requires master planning and local council approval
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May include strata components, community infrastructure, retail, and residential
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Common in townships or planned communities
Typical Price Range:
RM100–RM500 per sq ft (based on master plan approval & density)
Yield Potential:
High for long-term integrated townships or GDV-driven projects
Side-by-Side Comparison Table
| Criteria | Industrial Land | Commercial Land | Mixed-Use Land |
|---|---|---|---|
| Zoning Code | Perindustrian | Perniagaan | Bercampur |
| Primary Use | Factory, warehouse | Office, retail, hotel | Township, integrated dev. |
| Compliance Requirements | DOE, Fire Dept, Infra | Local Council, Infra | Masterplan, PBT |
| Price Range (RM/psf) | 30–180 | 150–1,500 | 100–500 |
| Power Load | High | Medium | Varies |
| Investment Yield | Medium to High | High (prime zones) | High (long-term) |
| Liquidity (Resale) | High | High (with good tenants) | Medium to High |
Development Compliance Matters
Each land type comes with its own building controls:
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Industrial: Plot ratio, heavy vehicle access, buffer zones from residential
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Commercial: Floor area efficiency, parking requirements
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Mixed-Use: Density caps, strata title approvals, environmental & infrastructure impact assessments
Always engage with a town planner or licensed agent to verify zoning rights and local compliance requirements.
Conclusion: Choose Based on Purpose, Not Price Alone
Choosing between industrial, commercial, or mixed-use land isn’t just about the price—it’s about what you're allowed to build and how it aligns with market demand. A cheap industrial plot with no access or compliance approvals could be costlier than a premium commercial lot ready for business.
Let Terra Group guide you through zoning, development planning, and investment decisions to make the most of your land acquisition in Malaysia.
Contact us Call Kenneth 017-380 9993 Or WhatsApp our team directly for the latest availability
