Authored by the expert who managed and guided the team behind the Malaysia Property Pack
Yes, the analysis of Johor's property market is included in our pack
Johor's rental market in 2025 delivers some of Malaysia's highest property yields, particularly for investors targeting Singapore-bound commuters and international tenants.
With average rental yields ranging from 4% to 8% depending on property type and location, Johor outperforms major Malaysian cities like Kuala Lumpur and Penang. The upcoming RTS Link and Special Economic Zones are driving unprecedented demand in strategic corridors, while traditional residential areas maintain steady returns for long-term investors.
If you want to go deeper, you can check our pack of documents related to the real estate market in Malaysia, based on reliable facts and data, not opinions or rumors.
Johor offers Malaysia's highest rental yields, with condos delivering 4-5%, landed houses 5-6%, and student housing up to 8% returns as of September 2025.
The RTS corridor and Iskandar Puteri lead yield performance at 5-7%, driven by Singapore commuter demand and infrastructure development.
| Property Type | Average Yield | Price Range (RM) | Monthly Rent (RM) |
|---|---|---|---|
| Condos/High-Rise | 4-5% | 400,000-600,000 | 1,500-2,500 |
| Landed Terrace Houses | 5-6% | 460,000-750,000 | 3,000-6,000 |
| Semi-D/Bungalows | 5-6% | 750,000-1,100,000 | 4,000-7,000 |
| Commercial Properties | 4-6% | 1,000,000+ | 5,000-15,000 |
| Serviced Residences | 5-8% | 500,000-800,000 | 2,500-4,000 |
| Student Housing | 6-8% | 300,000-500,000 | 400-700 per room |
What are the average rental yields in Johor for different property types?
Johor's rental market delivers Malaysia's most attractive yields across all property categories as of September 2025.
Condominiums and high-rise apartments generate average rental yields of 4-5%, with purchase prices typically ranging from RM400,000 to RM600,000. Premium locations near the upcoming RTS Link command yields up to 7%, significantly outperforming the national average.
Landed terrace houses offer yields of 5-6% with prices between RM460,000 and RM750,000. These properties attract steady demand from local families and expatriate tenants, particularly in established suburban areas. Semi-detached houses and bungalows deliver similar 5-6% yields but require higher capital investment of RM750,000 to RM1,100,000.
Commercial properties provide yields ranging from 4-6%, though they typically require investments above RM1,000,000. Business districts near major infrastructure projects show stronger performance within this range.
Serviced residences and student housing represent the highest-yielding segments, delivering 5-8% returns. Student housing near universities like UTM commands the premium end at 6-8% yields, while serviced residences benefit from Singapore commuter demand.
Which areas in Johor offer the highest rental yields today?
The RTS corridor and Bukit Chagar lead Johor's rental yield performance with returns of 5-7% for serviced residences.
These areas experience extremely high demand from Singapore-based professionals and maintain consistently low vacancy rates. The proximity to the upcoming Rapid Transit System Link makes these locations particularly attractive to cross-border commuters willing to pay premium rents.
Iskandar Puteri (Nusajaya) delivers 5-6% yields for both landed properties and condominium units. This planned township attracts expatriate families and international tenants, supporting stable rental income and strong occupancy rates.
Tebrau and Permas Jaya offer 4-5% yields for condominiums in these established, family-oriented neighborhoods. While yields are lower than emerging areas, these locations provide reliable long-term returns with minimal vacancy risk.
Student rental zones near UTM achieve the highest yields at 6-8% for room-by-room rentals. The consistent academic calendar ensures predictable occupancy, though management intensity is higher than traditional residential rentals.
How do yields differ based on property size and surface area?
Property size significantly impacts rental yields in Johor, with mid-sized units generally delivering optimal returns.
For condominiums in prime areas, prices per square foot range from RM600 to RM1,000+. Smaller, more affordable units typically yield closer to 5%, while luxury or premium properties may generate lower yields unless strategically located near the RTS corridor.
Landed houses command RM330 to RM577 per square foot, with mid-sized family-friendly homes delivering the highest yields. Three-bedroom terrace houses in the RM500,000 to RM700,000 range consistently outperform larger properties due to stronger rental demand from young families and professionals.
Commercial properties exceed RM600 per square foot, with optimal yields achieved in dense business areas and transit-adjacent locations. Smaller commercial units often struggle with yields due to higher per-square-foot costs and limited tenant pools.
Studio and one-bedroom units in student areas maximize yields through room-by-room rental strategies, though this requires more active management and faces seasonal occupancy fluctuations.
What are the typical purchase prices including all fees and transaction costs?
| Property Type | Base Price Range (RM) | Key Additional Costs | Total Cost Impact |
|---|---|---|---|
| Condos/High-Rise | 400,000-600,000 | MOT: RM2,500-3,500; Stamp duty: 4% (foreigners) | +7-9% of purchase price |
| Landed Terrace | 460,000-750,000 | MOT: RM2,500-4,500; Stamp duty: 4% (foreigners) | +7-9% of purchase price |
| Semi-D/Bungalows | 750,000-1,100,000 | MOT: RM4,500+; Higher stamp duty tiers | +8-10% of purchase price |
| Commercial Properties | 1,000,000+ | Higher duty rates; Elevated legal/agent fees | +9-12% of purchase price |
| Serviced Residences | 500,000-800,000 | Similar to condos; Foreign buyer levies | +8-10% of purchase price |
Foreign buyers face additional complexities with minimum price thresholds of RM1-2 million depending on the zone, plus foreign buyer levies up to 7-8%.
The MOT (Memorandum of Transfer) fee structure, implemented in July 2025, follows a tiered system: RM2,500 for properties valued RM500,000-600,000, rising to RM4,500 for RM900,000-1 million, with an additional RM250 for each RM50,000 increment above RM1 million.
Legal fees typically add 1% of the property price, while real estate agent commissions range from 2-3% of the purchase price. These costs must be factored into yield calculations to determine true investment returns.
What taxes and recurring costs affect net rental yields?
Property ownership in Johor involves several ongoing costs that directly impact net rental yields for investors.
For a typical RM500,000 property, annual costs include Cukai Taksiran (assessment tax) of approximately RM500, Cukai Tanah (quit rent) of around RM100, and property insurance of roughly RM500. Condominium owners face additional maintenance fees averaging RM300 monthly (RM3,600 annually) plus sinking fund contributions of about RM360 yearly.
Mortgage repayments significantly affect cash flow, with a typical RM400,000 loan requiring approximately RM24,000 in annual payments at current interest rates of 3.5-4.5%. Property maintenance and occasional renovations add roughly RM2,000 annually, while utilities for vacant periods cost around RM2,400 yearly.
Tax implications include Real Property Gains Tax (RPGT) of 30% if the property is sold within five years, with higher rates applying to non-citizens. Rental income is subject to personal income tax rates, though expenses can be deducted to reduce taxable income.
It's something we develop in our Malaysia property pack.
Don't lose money on your property in Johor
100% of people who have lost money there have spent less than 1 hour researching the market. We have reviewed everything there is to know. Grab our guide now.
How does financing with a mortgage impact overall investment returns?
Mortgage financing can amplify returns in Johor's rental market, but requires careful calculation of leverage benefits versus additional risks.
Current mortgage rates range from 3.5% to 4.5% annually, with local buyers typically accessing up to 90% financing while foreigners face stricter loan-to-value ratios and higher equity requirements. When rental yields exceed borrowing costs, leverage enhances overall returns significantly.
For a RM500,000 property generating 5% gross yield (RM25,000 annually) with 80% financing at 4% interest, the property generates positive cash flow after mortgage payments. However, investors must account for the full cost of ownership including maintenance, taxes, and vacancy periods when calculating leveraged returns.
Foreign investors face additional financing constraints, often requiring 40-50% down payments and higher interest rate premiums. These restrictions reduce leverage benefits but also limit exposure during market downturns.
The optimal financing strategy depends on individual circumstances, risk tolerance, and alternative investment opportunities. Properties in high-yield areas like the RTS corridor often justify higher leverage due to strong rental demand and capital appreciation potential.
What are the current average rental prices for different property types?
Johor's rental market shows clear segmentation by property type and location, with significant premium for Singapore-accessible areas.
Condominiums in established areas like Tebrau and Permas Jaya command monthly rents of RM1,500 to RM2,500, while similar properties in the RTS corridor and Bukit Chagar achieve RM2,500 to RM4,000 monthly due to Singapore commuter demand.
Landed terrace houses rent for RM3,000 to RM6,000 monthly depending on size and location, with three-bedroom units in family-oriented suburbs like Iskandar Puteri commanding the higher end of this range. Semi-detached houses and bungalows achieve RM4,000 to RM7,000 monthly, attracting expatriate families and senior executives.
Student housing operates on a room-by-room basis, with individual rooms near UTM renting for RM400 to RM700 monthly. This segment requires active management but delivers consistent demand throughout academic years.
Commercial properties vary widely based on location and usage, typically ranging from RM5,000 to RM15,000 monthly for retail and office spaces in prime business districts.
Who are the main renter profiles in Johor?
Johor's rental market serves diverse tenant segments, each with distinct preferences and budget ranges.
Local professionals represent the largest tenant segment, particularly in outer suburbs and family-oriented developments. These renters typically seek three-bedroom terrace houses or two-bedroom condominiums with good connectivity to employment centers and schools.
Young families and property upgraders drive demand for landed properties and affordable condominiums, especially in established neighborhoods with amenities and educational facilities. This segment values long-term stability and typically signs extended lease agreements.
Singapore-based expatriates specifically target premium serviced residences, condominiums in the RTS corridor, and high-end properties in Iskandar Puteri. These tenants command the highest rental rates and drive premium returns in strategically located properties.
University students cluster around UTM and other educational institutions, supporting strong demand for room-by-room rentals and shared accommodations. This segment tolerates higher density living but requires properties within reasonable commuting distance to campuses.
Blue-collar and factory workers concentrate in industrial and outer districts, typically seeking basic accommodations with affordable rent and proximity to manufacturing zones.
What are the typical vacancy rates in different areas and property types?
Vacancy rates in Johor vary significantly by location and property type, with well-connected areas maintaining consistently high occupancy.
The RTS corridor and established areas like Iskandar Puteri experience very low vacancy rates due to strong demand from Singapore commuters and expatriate families. These prime locations typically maintain occupancy above 90% with minimal marketing effort required.
Traditional residential areas like Tebrau and Permas Jaya show moderate to high occupancy, though slightly higher vacancy during economic uncertainty or when competing with newer developments. Occupancy rates typically range from 80-85% annually.
Short-term rental properties face seasonal fluctuations, with peak occupancy around 46% annually for well-managed units. However, top-tier properties in premium locations can achieve 60-70% occupancy during peak periods, while poorly located or managed units may struggle below 30%.
Student housing experiences predictable vacancy patterns aligned with academic calendars, typically achieving 85-90% occupancy during semester periods but facing higher vacancy during school holidays and breaks.
Older properties or those in less desirable locations may experience higher vacancy rates, particularly if competing against newer developments with better amenities and connectivity.
We did some research and made this infographic to help you quickly compare rental yields of the major cities in Malaysia versus those in neighboring countries. It provides a clear view of how this country positions itself as a real estate investment destination, which might interest you if you're planning to invest there.
Which rental strategies make more sense right now: short-term or long-term?
The optimal rental strategy in Johor depends on property location, investor involvement capacity, and risk tolerance as of September 2025.
Short-term rentals through platforms like Airbnb potentially deliver higher yields up to 10% for best-managed units in prime locations. City center and premium properties command average nightly rates of RM242 with 46% average occupancy, though exceptional properties achieve 60-70% occupancy during peak periods.
However, short-term rentals require significantly more management, face higher vacancy risks, and show sensitivity to seasonality and economic conditions. Regulatory uncertainty remains low currently, but this could change as the market matures.
Long-term rentals provide steady income streams, stable occupancy rates, and easier management requirements. Most investors in suburban areas and student zones choose this strategy due to predictable cash flows and reduced operational complexity.
The current market trend favors short-term rentals in city center and premium locations near Singapore connectivity, while long-term strategies work better for family-oriented suburbs and student areas. Mixed strategies using seasonal adjustments are becoming popular among sophisticated investors.
It's something we develop in our Malaysia property pack.
How have rents and yields evolved compared to five years ago and one year ago?
Johor's rental market has experienced dramatic growth since 2020, with particularly strong performance in infrastructure-connected areas.
Rental rates and yields have increased sharply in premium and high-commuter areas, with properties near the RTS corridor showing 18-20% rent increases since 2020. Prime zone condominiums have appreciated 23% year-over-year as of September 2025, significantly outpacing other Malaysian markets.
The yield gap between Johor and other major Malaysian cities has widened considerably. Johor now offers the highest major city gross yields at 6.25% compared to 4-5% in Selangor and 3-4% in Penang, representing a significant competitive advantage for investors.
Transaction volumes and price appreciation have accelerated since 2020, particularly in new infrastructure corridors. The announcement and progression of major projects like the RTS Link and Special Economic Zones have driven unprecedented investor interest and rental demand.
Compared to one year ago, rental growth has moderated slightly from peak rates but remains robust in strategic locations. Areas with confirmed infrastructure development continue showing strong performance while speculative zones have stabilized.
What are the yield forecasts for Johor over the next one, five, and ten years?
Johor's rental yield outlook remains highly positive across all time horizons, driven by fundamental infrastructure and economic development.
One-year forecasts predict stable to moderate yield increases, especially near RTS and Special Economic Zone locations. Property price growth of 3-7% is expected through 2026, with yields remaining broadly stable if rental rates keep pace with appreciation.
Five-year projections show continued rental growth as the RTS Link completes operations and SEZs become fully functional. Industry experts forecast that Johor will maintain attractive yields compared to other Southeast Asian cities, though yields may moderate in already overheated zones as supply increases.
Ten-year outlooks position Johor as likely to remain Malaysia's top-yielding major state, supported by sustained demand from Singapore and ongoing infrastructure investment. While growth rates will eventually slow as supply catches up with demand, outperformance against Kuala Lumpur and Penang is expected to persist.
Compared to regional competitors, Johor's strategic position as Singapore's closest major city provides sustainable competitive advantages. Bangkok and Manila face supply constraints and infrastructure limitations that position Johor favorably for long-term yield performance.
It's something we develop in our Malaysia property pack.
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 in 2025 represents Malaysia's most compelling yield opportunity, with strategic locations delivering 6-8% returns driven by Singapore connectivity and infrastructure development.
Success requires careful location selection, thorough understanding of transaction costs, and realistic assessment of management requirements, particularly for higher-yielding short-term rental strategies.
Sources
- Johor Bahru Property Market Outlook
- Johor Real Estate Market
- Johor Property Transfer Costs July 2025
- Singapore Buyers Malaysia Property Restrictions
- Total Cost Buying Home Malaysia
- Johor Price Forecasts
- Johor Bahru Rental Market Report
- Johor Bahru Expat Living Guide
- Johor Property Price Analysis
- Malaysia Rental Yields Guide