What are the best property investments in Johor Bahru?

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

Who is the author of this content?

BAMBOOROUTES

A team specialized in real estate investing in APAC countries (Japan, Malaysia, Indonesia, Australia, etc.).

We are a team of financial experts, legal professionals, developers, and local real estate specialists dedicated to helping people like you avoid mistakes when investing in real estate in a foreign place, particularly in Malaysia. If you'd like to learn more about us, you can check our presentation page.

How this content was created 🔎📝

At BambooRoutes, we explore the Malaysian real estate market every day. Our team doesn't just analyze data from a distance—we're actively engaging with local realtors, investors, and property managers in cities like Johor Bahru, Kuala Lumpur, and Penang. This hands-on approach allows us to gain a deep understanding of the market from the inside out.

These observations are originally based on what we've learned through these conversations and our observations. But it was not enough. To back them up, we also needed to rely on trusted resources

We prioritize accuracy and authority. Trends lacking solid data or expert validation were excluded.

Trustworthiness is central to our work. Every source and citation is clearly listed, ensuring transparency. A writing AI-powered tool was used solely to refine readability and engagement.

To make the information accessible, our team designed custom infographics that clarify key points. We hope you will like them! All illustrations and media were created in-house and added manually.

What types of properties are available for investment in Johor Bahru right now?

Johor Bahru offers a comprehensive range of property types that cater to different investment budgets and strategies.

High-rise apartments and condominiums dominate the market, ranging from affordable studios starting at RM200,000 to luxury penthouses exceeding RM1 million. These properties are particularly concentrated in Johor Bahru City Centre, Iskandar Puteri, and near the upcoming RTS Link stations.

Landed properties include terrace houses, link houses, semi-detached homes, and bungalows, with prices starting from RM600,000 for basic terrace units and reaching RM1.6 million for luxury bungalows in gated developments. Popular landed property areas include Horizon Hills, Eco Botanic, and various gated communities that attract both local and Singaporean buyers.

Serviced apartments represent a growing segment, offering furnished units with hotel-like amenities, typically priced between RM350,000 to RM500,000. These properties appeal to investors seeking immediate rental income from business travelers and expatriates.

Commercial properties, including shop lots and office spaces, are available throughout the city center and business districts, with entry prices starting around RM800,000 for basic units.

Is it smarter to buy or rent property in Johor Bahru depending on your goals?

The decision between buying and renting in Johor Bahru depends entirely on your timeline, financial situation, and investment objectives.

Buying makes financial sense if you plan to stay for five years or longer, want to build equity, or expect property appreciation. Monthly mortgage payments for a RM500,000 property typically range around RM2,200, which is often comparable to or lower than rental rates for similar properties that cost RM2,000-2,500 monthly.

However, buying requires substantial upfront costs including a 10% down payment, 4% stamp duty, and 1-1.25% legal fees, totaling approximately RM75,000 for a RM500,000 property. You'll also be responsible for maintenance, property taxes, and market risk exposure.

Renting offers superior flexibility with lower initial costs of just 2-3 months' deposit (RM6,000-7,500), making it ideal for expatriates on short assignments, people uncertain about long-term plans, or those who prefer not to tie up capital in real estate.

It's something we develop in our Malaysia property pack.

What are the current property prices in Johor Bahru, how have they changed over the years, and what are experts forecasting?

Property Type	Current Price (2025)	Price Growth (2023-2025)	Forecast (2025-2027)	Price per sq ft
Studio Apartment	RM200,000-214,000	+25-30%	+3-5% annually	RM400-500
Condominium (60 sqm)	RM400,000-428,000	+30%	+4-6% annually	RM450-550
Terrace House (75 sqm)	RM600,000-642,000	+20-25%	+3-7% annually	RM500-650
Semi-Detached	RM800,000-1.2M	+15-20%	+4-6% annually	RM600-800
Luxury Bungalow	RM1.5M-1.6M	+10-15%	+3-5% annually	RM800-1,200
Premium (near RTS)	RM600,000-1M+	+35-40%	+5-7% annually	Up to RM1,000+
Serviced Apartments	RM350,000-500,000	+20-25%	+4-6% annually	RM450-600

What are the main trends shaping the real estate market in Johor Bahru today?

Infrastructure development is the primary driver transforming Johor Bahru's real estate landscape in 2025.

The RTS Link connecting Johor Bahru to Singapore is generating unprecedented demand in areas within walking distance of the stations, with property prices near these locations increasing by 35-40% since the project announcement. The Johor-Singapore Special Economic Zone (JS-SEZ) is creating additional investment momentum in designated areas.

Strong demand for landed properties continues to outpace supply, driven by local upgraders who are moving from apartments to landed homes and Singaporean buyers seeking larger living spaces at affordable prices. Terrace houses and semi-detached properties are particularly sought after in gated developments.

The high-rise condominium segment is recovering from previous oversupply issues, with improved absorption rates in well-connected locations. Developers are focusing on smaller, more affordable units to cater to changing buyer preferences and economic conditions.

Government incentives and affordable housing schemes are supporting new construction projects, while Forest City's designation as a Special Financial Zone is revitalizing interest in that previously oversupplied development.

Who are the typical investors buying property in Johor Bahru, and what are their motivations?

Johor Bahru attracts a diverse mix of investors with distinct motivations and investment strategies.

Singaporeans and Singapore permanent residents represent the largest foreign investor group, attracted by property prices that are 70% lower than comparable Singapore properties, proximity to their workplace, and the upcoming RTS Link that will make cross-border commuting more convenient. Many are buying as investment properties or preparing for eventual relocation.

Malaysian citizens working in Singapore form another significant group, seeking to reduce their living costs while maintaining their Singapore employment. They typically prefer landed properties or larger condominiums that offer better value than Singapore housing.

Chinese and other international investors focus primarily on luxury developments and landmark projects, viewing Johor Bahru as an entry point to Southeast Asian real estate markets with growth potential.

Local Johorean investors, often priced out of central areas due to foreign demand, are moving to outlying districts like Tebrau and Gelang Patah where prices remain more affordable while still offering decent rental income potential.

Young Malaysian professionals and families represent the largest domestic buyer segment, particularly for new condominium developments and affordable terrace houses in established neighborhoods.

What are the top reasons to invest in Johor Bahru property—and what are some reasons you probably shouldn't?

Johor Bahru offers compelling investment advantages that make it attractive for both local and international investors.

**Top Reasons to Invest:**1. **Significantly lower entry prices** compared to Kuala Lumpur and Singapore, with condominiums starting from RM400,000 versus RM800,000+ in KL2. **Strong rental yields** ranging from 4-8%, with prime locations near RTS stations achieving the higher end3. **Capital appreciation potential** of 3-7% annually, supported by infrastructure development and economic growth4. **Major infrastructure projects** including RTS Link and JS-SEZ creating long-term demand drivers5. **Strategic location** providing easy access to Singapore's economy while maintaining Malaysian cost advantages6. **Diverse property options** catering to budgets from RM200,000 to RM2 million+**Reasons to Be Cautious:**1. **Oversupply risk** particularly in the high-rise and serviced apartment segments, which could limit rental demand and price growth2. **Market volatility** for short-term speculation, as property is best viewed as a medium to long-term investment3. **Significant upfront costs** including down payments, stamp duties, and legal fees that can total 15-20% of property value4. **Foreign ownership restrictions** requiring minimum purchase prices of RM1-2 million and exclusion from Malay Reserved Land

Which areas in Johor Bahru are considered best for property investment—affordable, up-and-coming, and premium zones—and what are their pros and cons?

Area	Category	Average Price Range	Key Advantages	Main Drawbacks
Johor Bahru City Centre	Premium	RM500,000-1M+	Proximity to Singapore, high rental demand, amenities	Higher prices, traffic congestion
Iskandar Puteri	Up-and-coming	RM400,000-800,000	Near RTS Link, new developments, SEZ benefits	Some areas still developing infrastructure
Tebrau	Affordable	RM300,000-600,000	Lower entry prices, good for families	Farther from city center and RTS
Horizon Hills/Eco Botanic	Premium	RM700,000-1.5M	Gated communities, popular with Singaporeans	Higher entry prices, limited public transport
Gelang Patah	Affordable	RM350,000-700,000	Near industrial zones, future growth potential	Limited lifestyle amenities currently
Forest City	Premium	RM600,000-1.5M	Special Financial Zone status, international focus	Past oversupply issues, regulatory uncertainties
Medini	Up-and-coming	RM450,000-900,000	Business hub development, theme parks nearby	Still evolving, dependent on master plan execution

What types of properties should you consider at different budget levels (low, mid, high)?

Your property investment options in Johor Bahru are directly tied to your available capital and investment objectives.

**Low Budget (≤RM400,000):** Focus on studio apartments, 1-bedroom condominiums, or older apartment buildings in suburban areas like Tebrau and Gelang Patah. These properties typically offer higher rental yields of 5-7% due to strong demand from young professionals and students, but may have limited capital appreciation potential.

**Mid Budget (RM400,000-RM800,000):** Consider newer condominiums in well-connected areas, 2-3 bedroom units in Iskandar Puteri, or terrace houses in developing townships. This price range offers the best balance of rental income and capital growth potential, with yields of 4-6% and good appreciation prospects near infrastructure projects.

**High Budget (≥RM800,000):** Target luxury condominiums in prime locations, landed properties in gated developments like Horizon Hills, or bungalows in established neighborhoods. While yields may be lower at 3-5%, these properties offer better capital preservation, stronger appreciation potential, and appeal to premium tenants including expatriates and high-income families.

It's something we develop in our Malaysia property pack.

What does the buying process look like, step by step, for local and foreign investors in Johor Bahru?

The property purchase process in Johor Bahru follows a structured timeline with specific requirements for different buyer categories.

**For Malaysian Citizens:**1. **Property search and selection** through online portals, real estate agents, or developer sales galleries2. **Submit Letter of Offer** with 2-3% earnest deposit to secure the property3. **Mortgage application** (if financing required) with banks offering up to 90% loan-to-value for first-time buyers4. **Sign Sale & Purchase Agreement (SPA)** within 14 days, paying 10% down payment minus earnest deposit5. **Pay stamp duty (4% of property value) and legal fees (1-1.25% of property value)**6. **Complete progressive payments** according to construction milestones (for new properties) or arrange full payment (for completed properties)7. **Obtain keys and complete handover** after final payment and legal requirements**For Foreign Investors:**- **Minimum purchase requirements:** RM1 million for strata properties, RM2 million for landed properties in international zones- **Cannot purchase Malay Reserved Land** regardless of price- **State government consent required** before purchase, which can take 2-4 months- **Foreign buyer levy** of 2% or RM20,000 (whichever is higher) must be paid- **PVIP or MM2H visa holders** may have access to lower minimum thresholds and streamlined processes- **All other steps follow the same process as Malaysian buyers** once approvals are obtained

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.

What makes a good property investment in Johor Bahru—and what are some common mistakes to avoid?

Successful property investment in Johor Bahru requires understanding local market dynamics and avoiding common pitfalls that trap inexperienced investors.

**Key Investment Success Factors:** Proximity to transportation infrastructure, especially RTS stations and major highways, ensures consistent rental demand and long-term appreciation. Freehold tenure properties offer better long-term value than leasehold. Properties with strong local rental demand, rather than those marketed primarily to foreign buyers, provide more stable returns. Gated and guarded developments for landed properties offer security that appeals to both local and international tenants.

**Properties to Prioritize:** Well-maintained older buildings in prime locations often outperform new developments in secondary areas. Two to three-bedroom configurations attract the largest tenant pool of families and working professionals. Properties near established amenities like shopping malls, hospitals, and schools maintain consistent demand.

**Common Investment Mistakes:** Overpaying for over-marketed high-rise developments with high maintenance fees and oversupply issues. Ignoring local buyer preferences and focusing only on foreign demand, which can be volatile. Underestimating total holding costs including maintenance, management fees, property taxes, and vacancy periods. Choosing properties based on developer marketing rather than independent market research and comparable sales data.

**Due Diligence Failures:** Not researching developer track records, which can lead to delays, quality issues, or abandoned projects. Failing to understand local rental markets and tenant preferences. Overlooking legal restrictions and additional costs for foreign buyers.

How viable is long-term rental income—what areas should you target, who are the tenants, what do they want, and what kind of yield can you expect?

Long-term rental income in Johor Bahru offers attractive yields and stable cash flow when properly targeted to local demand.

**Rental Yields by Location:** City center properties achieve 4-6% gross yields, with premium locations reaching 6-8%. Properties near RTS stations and transport hubs command the highest yields due to commuter demand. Iskandar Puteri and developing areas offer 5-7% yields with strong growth potential as infrastructure improves.

**Target Tenant Demographics:** Malaysian professionals working in Singapore represent the most reliable tenant segment, seeking properties with easy commute access. Local families prefer landed properties or larger condominiums in gated developments with good schools nearby. Young professionals and expatriates favor modern condominiums with amenities like gyms, pools, and security systems.

**Tenant Preferences and Requirements:** Proximity to public transportation, especially bus routes to Singapore and future RTS stations. Secure parking and 24-hour security, particularly important for working professionals. Modern amenities including air conditioning, built-in wardrobes, and quality appliances. Access to shopping centers, food courts, and essential services within reasonable distance.

**Best Areas for Rental Income:** Johor Bahru City Centre for maximum yields and tenant demand. Horizon Hills and Eco Botanic for premium tenants and stable returns. Iskandar Puteri for growth potential near future RTS stations. Tebrau for affordable properties with decent yields from local demand.

It's something we develop in our Malaysia property pack.

What about short-term rentals—where are they in demand, what regulations should you know, and what kind of income and occupancy can you realistically get?

Short-term rental opportunities in Johor Bahru are growing but require careful consideration of regulations and market dynamics.

**High-Demand Areas:** City center locations near business districts attract business travelers and weekend visitors from Singapore. Properties near Medini and theme parks appeal to family tourists. Forest City and premium developments cater to international visitors and expatriates on short assignments.

**Regulatory Considerations:** Many condominium developments have management rules restricting short-term rentals under 30 days. Local council regulations vary by area and may require business licenses for short-term rental operations. Building management approval is typically required before starting short-term rental business. Fire safety and insurance requirements may apply for commercial rental operations.

**Income and Occupancy Expectations:** Well-located properties can generate 20-40% higher income than long-term rentals during peak periods. However, occupancy rates fluctuate significantly based on border policies, travel restrictions, and seasonal demand. Average occupancy rates range from 40-70% depending on location and marketing effectiveness.

**Success Factors:** Professional property management and marketing are essential for consistent bookings. Properties must be fully furnished with hotel-quality amenities and housekeeping services. Understanding peak demand periods including Malaysian holidays, Singapore long weekends, and business travel patterns maximizes income potential.

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.

Sources

1. PropertyGuru Malaysia - New Developments Johor Bahru
2. IQI Global - New Housing Developments Johor
3. BambooRoutes - Johor Property Analysis
4. PropertyListing Malaysia - Renting vs Buying 2025
5. BambooRoutes - Johor Property Investment Guide
6. BambooRoutes - Johor Price Forecasts
7. BambooRoutes - Johor Real Estate Market
8. Global Property Guide - Malaysia Rental Yields
9. The Edge Malaysia - Property Market Updates
10. The Iskandarian - Property Market Q1 2025