Telok Gong, Klang is fast transforming into the next industrial powerhouse for Port Klang. This 5-year projection reveals how pricing, rental yields, and ESG-ready factory developments will redefine the logistics and manufacturing landscape by 2030.
Telok Gong Industrial Outlook 2025–2030: Prices, Rents, Yields & What to Buy
Brief: A practical 5-year projection for Klang’s Telok Gong industrial corridor, built around current launch benchmarks and port-driven demand.
2025 Market Snapshot (Baseline)
- Sales benchmark: ~RM 580 psf (GFA) or ~RM 380 psf (land) for new high-spec units.
- Spec profile: 20–30 kN/m² floor load, ~7.4 m clearance, 150–200 A incoming power; 5.5 m roller shutters; rainwater harvesting.
- Typical occupiers: logistics support, light assembly, machining, F&B processing, e-commerce fulfilment.
Growth Catalysts (2025?2030)
- Port Upsize: Westports expansion lifts container throughput, deepening demand for nearby storage, cross-dock and value-add facilities.
- Network Effects: WCE, SKVE and KESAS compress travel times to Shah Alam, KLIA and PIIP/Pulau Indah Free Zone.
- Upgrade Cycle: NIMP-aligned retooling and ESG upgrades push tenants toward modern, energy-efficient factories.
- Land Scarcity: Limited freehold industrial plots in Port Klang South tighten vacancy and support pricing.
Price Projection (Land psf)
| Year | Avg Land Price (psf) | YoY Growth | Drivers |
|---|---|---|---|
| 2025 | RM 380 | – | Launch baseline |
| 2026 | RM 410 | +8% | Phase handovers, rental stabilisation |
| 2027 | RM 440 | +7% | WCE link & foreign SME interest |
| 2028 | RM 475 | +8% | Westports 2 partial operations |
| 2029 | RM 510 | +7% | ESG factory premiums |
| 2030 | RM 550 | +8% | Full port-logistics integration |
Implied CAGR (2025?2030): ~7.8% p.a.
Rental & Yield Outlook
| Product | 2025 Rent (psf) | 2030 Rent (psf) | Typical Yield |
|---|---|---|---|
| SME Terrace Factory | RM 1.00 – 1.20 | RM 1.40 – 1.60 | 5.5 – 6.5% |
| Semi-D / Cluster | RM 1.20 – 1.40 | RM 1.70 – 1.90 | 6.0 – 7.0% |
| Detached (Built-to-Suit) | RM 1.50 – 1.70 | RM 2.20 – 2.50 | 7.0 – 8.0% |
Who rents here? Port-serving 3PLs, component makers, cold-chain/F&B, packaging, and e-commerce fulfilment.
Investor Playbook (Next 24–36 Months)
- Buy-and-Lease (Core): Focus on high-spec semi-D/cluster units with good trailer turning radius and dock provisions; target 6–7% yields.
- Built-to-Suit (BTS): Lock in 10–12-year leases with port-linked tenants; negotiate rental step-ups tied to CPI/fuel surcharges.
- Sale & Leaseback: Mature owner-occupied plants may recycle capital; underwrite covenant and capex backlog.
- ESG Uplift: Solar-ready roofs, rainwater harvesting and efficient envelopes support rent premiums and lower downtime.
Risks & Mitigations
- Flood & Climate: Prefer higher platform levels, proven drainage basins; check recent JPS mitigation works.
- Policy/Free-Zone Shifts: Diversify tenant mix beyond single port dependency; build termination buffers in leases.
- Construction & Power: Verify power upgrade paths (200–250 A to 300–600 A) and floor loading for heavy lines.
2030 Outlook
Telok Gong = Port Klang’s Next Industrial Frontier. By 2030, land values around RM 550 psf and rents up to ~RM 1.80 psf for modern semi-D units are achievable, supported by port expansion, network connectivity and ESG-driven upgrades. Expected total return (price + income) ~9–12% p.a. for well-located assets.
