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What is the outlook for the real estate market in Johor Bahru?

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Authored by the expert who managed and guided the team behind the Malaysia Property Pack

property investment Johor

Yes, the analysis of Johor's property market is included in our pack

The Johor Bahru property market is experiencing remarkable growth, with median property prices reaching RM588,000 and some high-end condos near infrastructure projects seeing 40-50% appreciation since 2020.

Strategic developments like the JS-SEZ and RTS Link are driving significant price increases, particularly for condominiums and commercial units in prime locations, while rental yields average around 6.25% across the market.

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.

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 are the current property price trends in Johor Bahru?

Johor Bahru property prices are experiencing significant upward momentum as of September 2025.

The median property price stands at RM588,000, with the median price per square foot ranging from RM447 to RM475 depending on the specific submarket and property type you're looking at.

Transaction volumes show robust activity with year-on-year increases of 16% in volume and 36% in total transaction value. This indicates strong buyer confidence and active market participation across different segments.

High-end condominiums and serviced apartments are leading the growth, particularly those located near major infrastructure projects like the JS-SEZ (Johor-Singapore Special Economic Zone) and the upcoming RTS Link. Properties in these prime locations have seen appreciation of up to 40-50% since 2020.

The strongest price increases are concentrated in strategic areas with infrastructure development, while rural and suburban locations show more modest growth patterns.

How have property prices in Johor Bahru changed over the past 12 months?

Johor Bahru property prices posted varied growth rates depending on property type and location over the past year.

Overall residential properties grew at a steady 3-5% annually, but certain segments significantly outperformed this average. Serviced apartments led the growth with an impressive 20.4% increase, while double-storey terraced houses achieved solid gains of 8.6%.

The high-rise segment, including condominiums and serviced apartments, recorded the highest transactional growth. Select projects near the RTS Link zone experienced exceptional performance, with some properties doubling in value with 100.2% year-on-year growth.

Landed houses maintained steady performance with annual growth rates between 2-4%, providing stability for family-oriented buyers. Commercial properties showed remarkable activity with transaction volumes jumping nearly 55% in high-demand districts like Medini and Iskandar Puteri.

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

What are the short-term projections for property prices in the next year?

Property prices in Johor Bahru are expected to maintain steady growth momentum over the next 12 months.

Overall residential properties are forecasted to continue their 3-5% annual appreciation rate, with the strongest performance anticipated in areas near the RTS Link and JS-SEZ development zones.

Developer confidence remains high based on continued new project launches and sustained transaction activity throughout 2025. This suggests market fundamentals support continued price growth rather than speculative bubbles.

High-rise properties, particularly condominiums and serviced apartments in strategic locations, are likely to outperform the market average due to strong investor and cross-border demand from Singapore.

Commercial properties in prime zones are expected to maintain their strong momentum, supported by ongoing urban development and increased business activity in the special economic zones.

What is the medium-term outlook for the next 3 to 5 years?

The medium-term outlook for Johor Bahru's property market shows continued strong fundamentals driven by strategic urban development.

Properties in key areas like Iskandar Puteri, Medini, and the city center are projected to experience compounded appreciation of 20-35% over the next 3-5 years, particularly for select locations and premium projects.

Infrastructure development around the JS-SEZ and RTS Link will continue supporting above-inflation appreciation rates. These mega-projects are expected to attract sustained investment and create long-term value for nearby properties.

Cross-border demand from Singapore investors and professionals is likely to remain elevated due to the significant value proposition compared to Singapore's property market. This provides a stable foundation for continued price growth.

The market is expected to mature during this period, with price growth becoming more selective based on location, quality, and connectivity to major infrastructure projects.

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What are the long-term expectations beyond 5 years?

Long-term property price trajectory in Johor Bahru depends on whether current economic and infrastructure policies maintain their momentum.

Historic trends suggest continued steady increases of 7-10% compounded annually in prime zones, though exceptional outperformance rates may narrow as the market matures.

Once infrastructure projects like the RTS Link and JS-SEZ reach full operation, they will provide a stable foundation for premium pricing in city center and SEZ-adjacent assets.

The market is expected to stabilize with more predictable growth patterns as foreign demand reaches equilibrium and infrastructure benefits are fully realized.

Properties with established connectivity to Singapore and major employment centers will likely maintain their premium status and continue commanding higher prices relative to outer areas.

Which areas of Johor Bahru are currently showing the strongest growth?

Several specific districts in Johor Bahru are significantly outperforming the broader market.

1. **Johor Bahru City Centre**: Leading with 40-50% appreciation since 2020, driven by urban renewal and proximity to Singapore2. **Iskandar Puteri**: Recording 30-40% growth boosted by JS-SEZ development and new infrastructure projects3. **Medini**: Achieving 25-35% increases due to new commercial and residential launches in this planned township4. **Pasir Gudang**: Showing good growth from industrial spillover effects and strategic location for logistics5. **Tebrau**: Benefiting from affordability and improving connectivity to city center and Singapore

These areas benefit from a combination of infrastructure investment, proximity to employment centers, and strong connectivity to Singapore.

Which areas are underperforming or facing stagnation?

Certain areas in Johor Bahru are experiencing slower growth compared to prime locations.

Rural districts show the weakest performance with only 5-10% price increases since 2020, primarily due to lack of new amenities or major development projects.

Suburban locations far from infrastructure improvements are seeing moderate-to-stagnant appreciation rates of 10-15%. These areas lack the catalysts driving growth in more strategic locations.

Properties in outer districts without direct connectivity to the RTS Link or major highways face challenges in attracting premium buyers or investors.

Areas without planned development projects or infrastructure upgrades are likely to continue underperforming relative to the broader market.

How do property types perform differently in Johor Bahru?

Different property types in Johor Bahru show distinct performance patterns based on market demand and investor preferences.

Property Type 12-Month Growth Rental Yield Market Characteristics
Condos/High-Rise 20-30% in top areas 6-7% Strongest investor demand, premium locations
Serviced Apartments 20.4% average 6-7% Exceptional performance, doubling values in 2024
Landed Houses 2-8.6% annually 4-5.5% Steady family demand, stable performance
Commercial Units 54.9% YoY in hot areas 7-8% Hot performance near Medini, Iskandar
Double-Storey Terraces 8.6% annually 4-5% Solid middle-market performance
Rural Properties 5-10% since 2020 3-4% Limited growth potential

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

infographics rental yields citiesJohor

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 are the average rental yields by area and property type?

Rental yields in Johor Bahru vary significantly based on location and property type, with an overall market average of approximately 6.25%.

Condominiums and commercial units in the city center or near RTS Link zones fetch the highest returns at 6-8%, making them attractive for investors seeking strong cash flow.

Three-bedroom condominiums typically command rental rates of RM1,800-2,200 per month, while landed homes in premium areas can achieve higher monthly rents due to their larger size and family appeal.

The rental market benefits from strong demand from relocating Singaporeans, local professionals, and expatriates working in the growing business districts.

Commercial properties offer the highest yields at 7-8% in strategic locations, supported by increasing business activity in special economic zones and urban development areas.

What is the demand outlook for buyers versus investors?

Johor Bahru's property market shows strong demand from both owner-occupiers and investors, each driven by different factors.

Living demand remains high among Malaysians seeking better connectivity, modern amenities, and affordability compared to Kuala Lumpur or Singapore. This creates steady underlying demand for family-oriented properties.

Investor and rental demand is particularly strong for high-rise properties and serviced apartments. The cross-border rental market is supported by Singaporeans, international professionals, and expatriates seeking quality accommodation.

Foreign investment interest continues to grow due to the significant price differential with Singapore properties and the improving infrastructure connectivity between the two countries.

The balance between these demand sources provides market stability, with owner-occupiers supporting the landed house segment and investors driving the high-rise and commercial segments.

What budget range offers the best balance of growth potential and affordability?

The optimal budget range for balancing growth potential with affordability in Johor Bahru is RM400,000-650,000.

This budget range provides access to well-located condominiums in emerging areas like Medini, Tebrau, or properties just outside the city center that still benefit from infrastructure development.

Iskandar Puteri and Pasir Gudang offer particularly attractive entry points within this budget, providing exposure to growth trends while maintaining reasonable purchase prices.

Properties in this price range typically offer good rental potential and capital appreciation prospects without requiring the premium prices commanded by city center locations.

This budget allows investors to diversify across multiple units or choose premium locations with strong growth catalysts like proximity to RTS Link or JS-SEZ development zones.

Which property types and areas make sense for different investment goals?

Your investment strategy in Johor Bahru should align with your specific goals and timeline.

**If you're buying to live:** Landed houses or semi-detached properties in proven neighborhoods like Tebrau, Kulai, or Iskandar Puteri work best for families, while professionals might prefer condominiums in Medini or Iskandar Puteri for convenience and modern amenities.

**If you're buying to rent out:** City center condominiums and serviced apartments, especially those near the RTS Link or JS-SEZ, offer high yields of 6-7% and strong rental demand from cross-border tenants and professionals.

**If you're buying to resell:** Prime city center condominiums and commercial units near infrastructure corridors provide the best potential for capital appreciation and market liquidity when you're ready to sell.

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

Consider your risk tolerance, investment timeline, and management capacity when choosing between these different approaches to Johor Bahru real estate investment.

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. Bernama - Johor Property Market News
  2. Free Malaysia Today - Property Prices Surge
  3. StarProperty - JLL Malaysia Price Trends
  4. EdgeProp - JB Residential Property Surge
  5. BambooRoutes - Johor Bahru Property Market Outlook
  6. BambooRoutes - Johor Price Forecasts
  7. Brickz - Johor Bahru Transactions
  8. iQI Global - Johor Property Price Analysis