Buying real estate in Johor?

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Will real estate prices in Johor go up in 2025?

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property investment Johor

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

Thinking about buying a 3-bedroom apartment in Johor Bahru? It’s a vibrant area, but you're probably wondering: is now the right time to buy, or should you wait for prices to drop?

And what about long-term investment—should you look into other districts like Iskandar Puteri or Nusajaya where property values might appreciate more over time?

In this article, we’ll answer these questions. We know this market quite well - and we have put all our knowledge in the Johor Property Pack.

Will property prices increase in Johor in 2025?

Yes, property prices in Johor are expected to rise in 2025, driven by a combination of economic growth and infrastructure development.

Backed by our fresh, in-depth market analysis, we’re confident that Johor remains an attractive location for both domestic and international investors.

While there are challenges such as economic uncertainties and potential policy changes, the main drivers behind Johor’s price growth are strong and persistent.

Demand, particularly in areas benefiting from new developments and improved connectivity, continues to outpace supply, making significant price declines unlikely. Additionally, Johor's strategic location near Singapore adds to its appeal for investors.

Signals pointing to a property price increase in Johor

Here are some factors suggesting prices could increase:

The ongoing development of the Rapid Transit System (RTS) Link between Johor Bahru and Singapore is expected to enhance connectivity significantly, making Johor more attractive to both local and international buyers. This improved accessibility is likely to boost property values in the region.

Johor's strategic location as a gateway to Singapore continues to attract investors looking for more affordable property options compared to Singapore. This cross-border interest is expected to sustain demand and support price increases.

The Iskandar Malaysia development region continues to attract investment, with ongoing projects in education, healthcare, and tourism sectors. These developments are expected to create jobs and increase demand for housing, driving property prices upward.

Government initiatives aimed at promoting Johor as a key economic zone, including incentives for foreign investors, are likely to stimulate the property market and contribute to price growth.

The anticipated economic recovery post-pandemic is expected to boost consumer confidence and spending power, leading to increased demand for properties in Johor.

Johor's growing population, driven by both natural growth and migration, is expected to increase housing demand, putting upward pressure on property prices.

The trend of urbanization and the development of new townships in Johor are likely to attract more residents, further increasing demand for residential properties.

Signals pointing to a property price decrease in Johor

Here are some factors suggesting prices could fall:

Economic uncertainties, including potential global recessions or slowdowns, could impact buyer confidence and reduce demand for properties in Johor.

Changes in government policies, such as property cooling measures or restrictions on foreign ownership, could dampen investor interest and affect property prices.

An oversupply of properties in certain areas of Johor, particularly in the high-rise residential segment, could lead to increased competition among sellers and put downward pressure on prices.

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If property prices go up in Johor, how much would they increase by?

If real estate prices in Johor were to rise in 2025, the increase would likely be between 3% to 7% of their 2024 values.

Typically, real estate in growing markets like Johor appreciates by approximately 3% to 7% annually over the long term. However, fluctuations can occur depending on factors such as location, economic conditions, and property type.

It means that, if you spot a charming 2-bedroom apartment in Iskandar Puteri for RM500,000 today, don't be surprised if it's priced between RM515,000 and RM535,000 this time next year.

To give you a better understanding, here is a table that shows 7 types of Johor real estate properties, their estimated prices in 2024, and projections for 2025 based on potential price increases of 3%, 5%, and 7%.

Type of Property Average Price in 2024 (RM) Price in 2025 (3% increase) Price in 2025 (5% increase) Price in 2025 (7% increase)
Condominium (60 sqm / 646 sqft) RM400,000 RM412,000 RM420,000 RM428,000
Terrace House (75 sqm / 807 sqft) RM600,000 RM618,000 RM630,000 RM642,000
Luxury Bungalow (100 sqm / 1,076 sqft) RM1,500,000 RM1,545,000 RM1,575,000 RM1,605,000
Studio Apartment (30 sqm / 323 sqft) RM200,000 RM206,000 RM210,000 RM214,000
Duplex (80 sqm / 861 sqft) RM800,000 RM824,000 RM840,000 RM856,000
Semi-Detached House (150 sqm / 1,615 sqft) RM1,200,000 RM1,236,000 RM1,260,000 RM1,284,000
Commercial Property (50 sqm / 538 sqft) RM500,000 RM515,000 RM525,000 RM535,000

Everything you need to know is included in our Property Pack for Johor

If real estate prices go up in Johor, which areas are likely to see the biggest increases?

Today, people who want to move to Johor are looking for a blend of cultural heritage and modern amenities, which Iskandar Puteri offers. Hence, we could see a price increase there in 2025.

Also, lately, there's been a shift toward more youthful, vibrant neighborhoods, and Johor Bahru City Centre has really taken off.

We like it when information is clear and easy to digest. So, here’s a table that highlights the areas where prices might rise the most, along with the reasons behind those expected increases. It’s very high-level. If you want more details on a specific area, please check our real estate pack tailored to the Johor market.

Neighborhood Level of Increase Why
Iskandar Puteri High Recent development of luxury housing projects and its increasing appeal to international buyers as travel normalizes post-pandemic, driving demand.
Johor Bahru City Centre High Expected rise due to limited housing stock, upcoming renovations to heritage buildings, and growing demand for prime properties in central Johor.
Taman Mount Austin Medium-High Ongoing gentrification and new transport links, along with several planned redevelopment projects in the area, are likely to push prices higher.
Nusajaya Medium The shift towards hybrid workspaces is driving demand for residential properties near business districts, combined with new mixed-use developments.
Taman Molek Medium-High Eco-friendly urban projects and recent construction of new schools and parks are increasing its attractiveness for families, pushing prices upward.
Permas Jaya Medium Investment in local infrastructure, such as the extension of tram lines and renovation of historic areas, is boosting long-term value.
Danga Bay Medium-High With new cultural and commercial spaces being developed, this trendy neighborhood is seeing increased demand from both residents and investors.
Skudai High Upcoming large-scale urban regeneration projects and improved public transport access are expected to make this area more desirable.
Tebrau Medium-High Its proximity to Johor Bahru, along with new office and residential developments, makes it increasingly attractive to professionals seeking more space.
Kulai Medium Gentrification and cultural regeneration projects are attracting new residents, leading to rising prices as the area becomes more fashionable.
Pasir Gudang High As new luxury developments are launched, demand for premium housing among wealthy buyers is expected to further increase property values.
Kota Tinggi High Upcoming restoration of cultural landmarks and high-profile projects are driving a renewed focus on this central, historic location.

If I'm looking to invest in real estate, what types of properties should I focus on for the best value appreciation in Johor?

In 2025, Johor real estate trends focus on tech-smart, energy-efficient apartments, larger suburban homes for families, properties with outdoor spaces, and eco-friendly buildings—all driving higher demand and prices. Here is a summary.

  • Tech-Equipped and Energy-Efficient Apartments:

    Driven by remote work and sustainability trends, these homes offer smart technology features and energy-saving systems. They cater to young professionals and tech workers, making them a hot commodity in 2025.

  • Family-Sized Homes in Suburban Areas:

    With a growing demand for larger living spaces, especially among families, suburban areas near Johor Bahru are seeing increased interest. Proximity to green spaces, schools, and amenities is a major factor driving value.

  • Properties with Outdoor Spaces:

    Post-pandemic, outdoor spaces like terraces, balconies, or gardens have become highly desirable. In growing urban areas like Johor Bahru, these features offer a much-needed escape and are likely to drive up property values.

  • Eco-Friendly Buildings with Low Carbon Footprints:

    Johor's commitment to sustainability is boosting demand for eco-certified buildings. Buyers are increasingly valuing properties that align with the region’s green goals, leading to price appreciation in this category.

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