RM418.5 Million for 557 Acres of Oil Palm Land in Johor: What Can We Learn?

One interesting land transaction I've been following involves SD Guthrie and Sime Darby Property.

On 11 August 2026, both companies announced a conditional agreement for approximately 556.96 acres of freehold oil palm land in Kulai, Johor, at RM418.51 million.

That works out to approximately RM751,400 per acre, or RM17.25 per square foot.

More than an agricultural price

What caught my attention wasn't just the price — it was the intended use.

The land is currently planted with mature oil palms and classified as agricultural, but the area is zoned for residential development. Sime Darby Property plans a residential and commercial township with a preliminary estimated gross development value (GDV) of RM3 billion.

It also sits within the Johor–Singapore Special Economic Zone (JS-SEZ), where growing industrial and commercial activity could support future township demand.

What's the lesson for estate owners?

Plantation land should not always be valued solely on its agricultural income. Location, surrounding development, infrastructure and permissible future uses can change what a buyer is prepared to pay.

Of course, not every plantation can command development-land prices. Land-use conversion, planning approvals, infrastructure costs and market demand all matter.

Where does the deal stand?

• SD Guthrie shareholders approved the disposal on 15 October 2026.

• Sime Darby Property shareholders approved the acquisition on 3 November 2026.

• Completion is expected in Q2 2027, subject to the remaining conditions.

For landowners considering selling a large estate, understanding the buyer's intended use is just as important as knowing the land's agricultural value. Sometimes, finding the right buyer makes all the difference.

I'll keep sharing interesting land transactions and market observations from across Malaysia.

Thinking of selling or leasing a large estate? Contact Landbook Malaysia via WhatsApp at +60 12-779 5989 for a confidential discussion.

Elvis Liang

Landbook Malaysia — Your ONE Stop Land Sourcing Partner