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Yes, the analysis of Johor's property market is included in our pack
Johor's rental market has become increasingly attractive to investors, with average yields reaching 5.47% in 2025 and rental prices spanning from RM800 for studio units to over RM5,000 for luxury properties. The market benefits from strong cross-border demand from Singapore commuters and robust infrastructure development including the upcoming RTS Link project.
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Johor's residential rental market offers competitive yields averaging 5.47% as of September 2025, with studio apartments starting at RM800 monthly and luxury properties reaching RM5,000+.
The market shows strong performance driven by Singapore commuters, infrastructure development, and strategic location advantages near major transport links.
| Property Type | Average Monthly Rent | Typical Yield Range |
|---|---|---|
| Studio Apartments | RM800 - RM1,500 | 6% - 8% |
| 3-Bedroom Condos | RM1,800 - RM2,200 | 5% - 6% |
| Serviced Apartments | RM1,500 - RM2,200 | 5.5% - 7% |
| Double-Storey Terrace | RM2,000 - RM2,900 | 4% - 5.5% |
| Luxury Bungalows | RM3,200 - RM5,000+ | 3.5% - 5% |
| Small Units (<700 sq ft) | RM800 - RM1,500 | 6% - 8% |
| Mid-sized (1,100-1,400 sq ft) | RM1,600 - RM2,300 | 5% - 6.5% |
What's the current average rent in Johor across the main property types?
As of September 2025, Johor's residential rental market shows clear pricing tiers across different property categories.
Three-bedroom condominiums in Johor Bahru command monthly rents between RM1,800 and RM2,200, representing the market's mainstream segment. Serviced apartments in the city centre fall within a similar range of RM1,500 to RM2,200, depending on their specific location and amenities package.
Studio apartments present the most affordable entry point, with rents spanning RM800 to RM1,200 monthly in areas like Tebrau and city fringe locations. Prime city neighbourhoods push studio rents higher, reaching RM1,200 to RM1,500 monthly. Double-storey terrace houses in high-demand locations such as Horizon Hills attract rents between RM2,000 and RM2,900 monthly.
At the premium end, luxury bungalows in gated precincts command RM3,200 to RM5,000+ monthly. Small units below 700 square feet typically rent for RM800 to RM1,500, with variations based on property age and amenities.
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How does rent vary between different neighborhoods and districts in Johor?
Johor's rental pricing reflects clear geographical patterns, with city centre locations commanding premium rates and suburban areas offering more affordable options.
| Area/District | 3BR Condo Monthly Rent | Terrace House Monthly Rent | Average Rental Yield |
|---|---|---|---|
| Johor Bahru City | RM1,800 - RM2,200 | RM2,300 - RM2,900 | 5.47% |
| Iskandar Puteri | RM1,700 - RM2,100 | RM2,000 - RM2,600 | 5.6% |
| Tebrau | RM1,500 - RM1,900 | RM1,900 - RM2,400 | 5% - 7% |
| Plentong, Tampoi | RM1,500 - RM1,800 | RM2,000 - RM2,400 | 5.8% - 7.1% |
| Suburban Johor Towns | RM1,200 - RM1,600 | RM1,500 - RM2,000 | 3.2% - 5.4% |
Prime districts near major transport links including the upcoming RTS Link and existing CIQ checkpoint consistently command higher rental rates and better yields. Iskandar Puteri shows particularly strong performance with yields reaching 5.6%, reflecting its strategic positioning and development momentum.
What's the rent difference between small units, mid-sized apartments, and large houses?
Property size directly correlates with rental pricing in Johor's market, creating distinct categories for different tenant profiles.
Studios and small units under 700 square feet represent the entry-level segment, commanding RM800 to RM1,500 monthly. These properties appeal primarily to young professionals, students, and Singapore commuters seeking affordable accommodation near transport links.
Mid-sized apartments spanning 1,100 to 1,400 square feet occupy the middle tier, with monthly rents ranging from RM1,600 to RM2,300. This category attracts small families and professionals requiring additional space for home offices or guest accommodation.
Large houses exceeding 1,800 square feet, typically double-storey terrace properties, command RM2,000 to RM3,000+ monthly. These properties serve established families and expatriates prioritizing space, privacy, and landed property benefits.
The pricing gap between categories reflects not just size differences but also amenity packages, location preferences, and target tenant demographics.
What is the typical total monthly cost when including service charges, management fees, and taxes?
Understanding the complete monthly cost requires factoring in additional charges beyond base rent.
Management fees and service charges for condominiums and apartments typically add RM150 to RM350 monthly to the base rent. These fees cover common area maintenance, security services, and facility upkeep including swimming pools, gyms, and landscaping.
Property taxes generally don't burden tenants directly, as owners pay quit rent and assessment fees averaging RM200 to RM500 annually. Utility costs including electricity, water, and internet typically range from RM200 to RM400 monthly, depending on household size and usage patterns.
For a mid-range condominium with base rent around RM2,000, total monthly costs including all fees and utilities typically reach RM2,100 to RM2,600. This comprehensive figure provides a realistic budget framework for prospective tenants and investment calculations for property owners.
How do mortgage repayments compare with average rental income for an investor today?
Current market conditions create a balanced equation between mortgage obligations and rental income potential for property investors.
A typical mortgage payment for a RM500,000 property averages RM2,200 monthly, based on current interest rates and standard loan terms. Properties in this price range typically generate rental income between RM2,000 and RM2,500 monthly, depending on location and property type.
This alignment makes buy-to-let investments feasible but not immediately lucrative after accounting for vacancy periods, maintenance costs, and property management fees. Investors typically achieve break-even or modest positive cash flow in the initial years, with returns improving as rental rates appreciate over time.
Properties in higher-yield areas such as Plentong and Tampoi, generating 5.8% to 7.1% annual returns, offer better prospects for positive monthly cash flow from the outset.
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What are the short-term versus long-term rental options, and which tend to perform better?
Johor's rental market supports both short-term and long-term strategies, each serving distinct tenant segments and offering different risk-return profiles.
Short-term rentals through platforms like Airbnb predominantly offer one-night minimum stays, capturing 95.3% of listings and appealing to tourists and business commuters. Monthly Airbnb arrangements represent a smaller niche at 1.9% of listings, with occupancy rates averaging 29% to 40%. Prime locations with strong amenities significantly outperform this average.
Long-term rentals spanning one year or more dominate the market, serving families, local professionals, and cross-border commuters. These arrangements achieve occupancy rates exceeding 70% in city districts, providing more predictable income streams.
Long-term rentals generally offer superior stability and yield consistency, while short-term rentals can generate higher returns but require active management, superior amenities, and strategies to address seasonal occupancy fluctuations.
Can you give examples of actual rental prices for different types of properties in Johor?
Current market examples demonstrate the practical application of Johor's rental pricing structure across various property types and locations.
In Pulai, a 1,100 square foot condominium commands RM2,300 monthly, reflecting the area's appeal to families and professionals. Bandar Johor Bahru condominiums typically rent for RM1,800 monthly, representing the city centre premium balanced with accessibility.
Tebrau's new studio units achieve RM1,000 to RM1,200 monthly, demonstrating the area's value proposition for young professionals and students. Horizon Hills double-storey properties command RM2,900 monthly, justified by the gated community's amenities and family-friendly environment.
Centro @ JBCC, representing new launch properties, achieves RM1,350 to RM2,150 monthly depending on specific layout and floor level. These examples illustrate how factors including location, property age, amenities, and unit configuration influence actual rental achievements.
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Who are the main renter profiles in Johor right now, and what are they looking for?
Johor's rental market serves five distinct tenant categories, each with specific requirements and preferences.
- Singapore-Malaysia commuters: Seek small city-centre units with convenient access to RTS Link and CIQ checkpoint, prioritizing location over space
- Young professionals: Prefer serviced apartments near business districts, valuing amenities like gyms, security, and professional networking opportunities
- Families: Favor landed houses and mid-sized condominiums in established townships, emphasizing schools, safety, and community facilities
- Students and young couples: Target studios and affordable high-rise apartments, focusing on budget-friendly options with basic amenities
- Expatriates: Often require short-term rentals in premium city areas, prioritizing proximity to international facilities, security, and comprehensive amenities
Each segment drives demand in specific property types and locations, creating distinct micro-markets within Johor's broader rental landscape.
What are the vacancy rates like across different property types and areas?
As of September 2025, Johor's rental market demonstrates healthy occupancy levels with manageable vacancy rates across most segments.
Johor Bahru residential properties achieve 72.4% occupancy, translating to a 27.6% vacancy rate in Q1 2025. This figure represents a healthy market balance, providing sufficient options for tenants while maintaining reasonable absorption rates for property owners.
Serviced apartments show improving performance with vacancy rates declining and a 5.6% reduction in overhang during Q1 2025. This improvement reflects growing demand from business travelers and cross-border commuters.
Airbnb properties show high calendar availability, but well-managed units in prime locations achieve significantly better occupancy rates than the market average. Active property management and strategic amenity investments prove crucial for short-term rental success.
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Which property types or areas currently offer the smartest investment choices in Johor?
Investment strategy in Johor should align with risk tolerance and return objectives, with three primary approaches showing strong potential.
High-yield strategies focus on studios and serviced apartments near the RTS Link corridor, generating annual yields between 6% and 8%. These properties capitalize on cross-border commuter demand and infrastructure development momentum.
Stable long-term investments target terraced houses in established family-friendly areas, delivering consistent yields between 4% and 5%. These properties offer capital appreciation potential alongside steady rental income from local family demographics.
Commercial property investments near business districts achieve yields spanning 6% to 10%, though they require higher initial capital and more sophisticated management approaches.
Prime locations near major infrastructure projects and cross-border corridors consistently offer the best risk-adjusted returns, combining capital growth potential with strong rental demand fundamentals.
What are the average rental yields, how have they changed compared with 1 year and 5 years ago, and what are the forecasts for 1, 5, and 10 years?
Johor's rental yield trajectory demonstrates consistent improvement driven by infrastructure development and strategic location advantages.
| Time Period | Average Yield | Yield Range | Key Drivers |
|---|---|---|---|
| 5 Years Ago (2020) | 4.0% - 4.5% | Limited range | Pre-infrastructure development |
| 1 Year Ago (2024) | 5.24% | 4.5% - 6.5% | Infrastructure announcements |
| Current (2025) | 5.47% | 3.2% - 8.0% | RTS Link development |
| 1 Year Forecast (2026) | 5.4% - 6.0% | Stable range | Growing commuter demand |
| 5 Year Forecast (2030) | 6.0% - 8.0% | Prime locations | Infrastructure completion |
| 10 Year Forecast (2035) | 6.0% - 7.0% | Moderated growth | Supply increases, market matures |
The five-year improvement from 4.0% to 5.47% reflects infrastructure development impact and cross-border economic integration. Prime locations near major projects currently achieve yields up to 8%, establishing a new performance benchmark.
How do Johor's rents and yields compare with other major comparable cities in the region?
Regional comparison positions Johor favorably against Malaysian peers and regional competitors, offering superior risk-adjusted returns.
| City | Average Yield | 3BR Condo Rent | Terrace House Rent | Investment Trend |
|---|---|---|---|---|
| Johor Bahru | 5.47% | RM1,800 - RM2,200 | RM2,000 - RM2,900 | Infrastructure-driven surge |
| Kuala Lumpur | 4.60% | RM2,500 - RM3,800 | RM3,500 - RM5,000 | Oversupply lowers yield |
| Petaling Jaya | 5.28% | RM2,100 - RM2,900 | RM2,600 - RM3,600 | Stable, high demand |
| George Town | 3.77% | RM1,800 - RM2,400 | RM2,200 - RM2,900 | Lower yields, slower growth |
| Iskandar Puteri | 5.6% | RM1,700 - RM2,100 | RM2,000 - RM2,600 | Fastest appreciation |
Johor delivers superior yields compared to Kuala Lumpur and George Town while maintaining competitive rental rates. The combination of lower property prices and growing rental demand creates an attractive investment proposition for yield-focused investors.
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Conclusion
This article is for informational purposes only and should not be considered financial advice. Readers are advised to consult with a qualified professional before making any investment decisions. We do not assume any liability for actions taken based on the information provided.
Johor's rental market demonstrates robust fundamentals with average yields of 5.47% outperforming major Malaysian cities, supported by infrastructure development and strategic cross-border positioning.
The market offers diversified opportunities from high-yield studio investments near transport links to stable family housing, with rental prices spanning RM800 to RM5,000+ depending on property type and location.
Sources
- Johor Bahru Property Market Outlook
- Johor Real Estate Market
- IQI Global - New Housing Developments Johor
- Johor Bahru Best Property Investment
- Global Property Guide - Malaysia Price History
- Johor Property Market Outlook
- IQI Global - Johor Property Price
- Johor Property
- Go Digit - Cost of Living in Malaysia
- AirROI - Johor Bahru Report