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Yes, the analysis of Johor's property market is included in our pack
Johor's property market in 2025 offers compelling opportunities for both investors and homebuyers, with prices expected to rise 3-7% annually driven by major infrastructure projects like the RTS Link and JS-SEZ.
Whether you're a Singaporean looking for affordable cross-border investment, a foreigner seeking Malaysia My Second Home residency, or a local buyer searching for your dream home, Johor's diverse property landscape has something for every budget and lifestyle.
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Johor's property market in 2025 is experiencing robust growth with 3-7% annual price increases expected, driven by the RTS Link to Singapore and JS-SEZ development. The market offers diverse options from RM250,000 apartments to RM1 million+ luxury homes, with rental yields of 4-6% making it attractive for both living and investment purposes.
| Key Factor | Current Status (June 2025) | What It Means for Buyers |
|---|---|---|
| Property Prices | Up 30% since pre-pandemic for condos | Still affordable compared to Singapore, but act fast |
| Foreign Buyer Minimum | RM1 million (high-rise), RM2 million (landed) | Higher barrier but protects investment value |
| Rental Yields | 4-6% average, up to 8% near RTS | Strong returns for buy-to-let investors |
| Infrastructure Impact | RTS Link operational, JS-SEZ developing | Property near these projects seeing highest appreciation |
| Market Inventory | 12,000+ listings in JB alone | Good selection but quality properties move fast |
| Living Costs | One-third of Singapore's costs | Makes property investment more sustainable |
| Price Forecast 2025-2026 | 3-7% annual growth expected | Good capital appreciation potential |
What types of properties are available in Johor and who's buying them?
Johor's property market in 2025 offers everything from affordable high-rise apartments starting at RM273,700 to luxury bungalows exceeding RM1 million.
The most common property types include terrace houses, condominiums, semi-detached houses, bungalows, and residential land plots. With over 12,000 active listings in Johor Bahru alone, buyers have extensive choices across both new launches and subsale properties. New developments are particularly concentrated in Johor Bahru City Centre, Iskandar Puteri, Tebrau, and Gelang Patah.
Singaporeans and Singapore Permanent Residents make up the largest foreign buyer segment, drawn by prices that are roughly 70% cheaper than Singapore while maintaining just a 30-minute commute via the new RTS Link. Malaysian citizens working in Singapore form another major buyer group, choosing Johor for its lower living costs while maintaining their Singapore employment. Chinese investors focus heavily on luxury developments like Forest City, while local Johoreans increasingly find themselves priced out of central areas and moving to outlying districts like Kota Tinggi and Kulai.
Young professionals and first-time buyers typically target affordable high-rise units in suburban townships, while families prefer landed properties in gated communities near international schools.
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How have property prices moved recently and what's coming next?
Johor's property prices have shown consistent growth, with annual increases of 3-5% over the past five years.
As of June 2025, condominium prices have surged nearly 30% compared to pre-pandemic levels, with properties near the RTS Link experiencing even steeper appreciation. The most dramatic price movements occurred in 2024 when infrastructure project announcements triggered buyer rushes in specific corridors. Areas like Johor Bahru City Centre and Iskandar Puteri saw premium properties appreciate by 40-50% since 2020.
Looking ahead to 2025-2026, property prices in Johor are expected to continue rising by 3-7% annually. The RTS Link's full operation and JS-SEZ development will be the primary growth drivers, with properties within 5km of these projects likely to see above-average appreciation of 8-10%. However, luxury high-rise segments may experience slower growth due to oversupply concerns, while affordable landed properties under RM600,000 should maintain steady demand.
Market analysts predict that by end-2026, average property prices in prime Johor locations could reach RM600-700 per square foot for high-rises and RM400-500 per square foot for landed properties.
Should you buy or rent in Johor right now?
The decision between buying and renting in Johor depends heavily on your personal circumstances, but buying generally makes more sense if you plan to stay for more than five years.
From a financial perspective, monthly mortgage payments for a RM500,000 property (about RM2,200) are often comparable to or lower than rental costs for similar properties (RM2,000-2,500). However, buying requires substantial upfront costs including a 10% down payment, 4% stamp duty, and 1-1.25% legal fees. Renters only need to pay 2-3 months' deposit upfront, making it easier to get started.
| Factor | Buying | Renting |
|---|---|---|
| Initial Cost | RM75,000+ (for RM500k property) | RM6,000-7,500 (deposits) |
| Monthly Cost | RM2,200 (mortgage) + maintenance | RM2,000-2,500 (rent) |
| Flexibility | Low - selling takes 3-6 months | High - 1-2 month notice |
| Wealth Building | Yes - equity + appreciation | No equity accumulation |
| Maintenance | Owner's responsibility | Landlord handles |
| Best For | Long-term residents, families | Short-term, uncertain plans |
| Market Risk | Exposed to price fluctuations | No market risk |
Buying makes particular sense for Singapore-Malaysia commuters who can benefit from currency advantages and those seeking to build long-term wealth through property appreciation. Renting remains better for expatriates on short assignments, those testing out different neighborhoods, or anyone uncertain about their long-term plans in Johor.
What market trends should property buyers know about?
The RTS Link and Johor-Singapore Special Economic Zone are transforming Johor's property landscape in 2025.
Infrastructure development dominates the market narrative, with the operational RTS Link reducing Singapore commute times to 30 minutes and the JS-SEZ attracting multinational corporations. Properties within the RTS corridor command 20-30% premiums compared to similar units elsewhere. Foreign investment, particularly from Singapore and China, continues driving luxury segment demand, with some developments reporting 60-70% foreign ownership.
The government's push for affordable housing means 35-40% of new launches target the sub-RM500,000 segment, supported by schemes offering lower down payments and stamp duty exemptions for first-time buyers. Rental yields have strengthened to 4-6% on average, with serviced residences near business districts achieving up to 8%. However, the high-rise luxury segment faces oversupply risks, with some areas showing 6-12 month absorption periods.
Sustainable development trends are gaining traction, with new projects featuring solar panels, rainwater harvesting, and smart home systems commanding 5-10% premiums. Gated-and-guarded communities remain highly sought after, especially among foreign buyers concerned about security.
How does the buying process work for foreigners?
- Property Search and Selection - Engage a registered real estate agent to navigate the market and ensure compliance with foreign ownership rules. Verify the property meets minimum price thresholds: RM1 million for high-rise properties or RM2 million for landed properties in international zones.
- Letter of Offer and Earnest Deposit - Submit a formal offer through your agent with a 2-3% earnest deposit. This deposit is typically held by the developer or seller's solicitor and forms part of your down payment.
- Financing Arrangement - Foreign buyers can secure 70-80% financing from Malaysian banks, with MM2H visa holders potentially qualifying for up to 90%. Processing takes 2-4 weeks and requires income documentation, bank statements, and employment verification.
- Sale and Purchase Agreement (SPA) - Sign the SPA within 14 days of offer acceptance and pay the balance 10% down payment. The SPA is a legally binding document outlining all terms, payment schedules, and completion dates.
- State Authority Consent Application - All foreign purchases require state government approval, taking 1-3 months. Your lawyer handles this application, which costs RM1,000-3,000 in administrative fees.
- Progressive Payments and Completion - For new developments, pay according to construction milestones. For completed properties, settle the remaining 90% upon loan disbursement and consent approval.
- Legal Transfer and Key Collection - Complete the property transfer at the land office, pay stamp duties (4% of purchase price), state levy (2% or RM20,000, whichever is higher), and collect keys upon vacant possession.
Additional costs include legal fees (1-1.25%), valuation fees (RM2,000-3,000), and loan agreement stamp duty (0.5%). Total transaction costs typically amount to 7-8% of the property price.
Which property agencies and websites are most reliable?
Choosing the right agency and portal is crucial for navigating Johor's property market successfully in 2025.
Top-performing agencies in Johor include Ace Tan Realty, which specializes in Singapore buyer transactions and RTS corridor properties, and One Dream Legacy, known for their expertise in new launches and developer relationships. PMEX Realty and Premier Plus Property have strong track records in the luxury segment, while Gather Properties and CBD Properties focus on commercial and mixed-use developments. For international buyers, ERA Real Estate and Hartamas Real Estate offer dedicated foreign buyer divisions with multilingual support.
When browsing properties online, PropertyGuru Malaysia remains the market leader with over 200,000 active listings and detailed market reports. iProperty.com.my offers comprehensive neighborhood guides and mortgage calculators, while PropSocial provides community reviews and developer ratings that help buyers avoid problematic projects. DotProperty Malaysia excels in new launch information and virtual property tours.
It's something we develop in our Malaysia property pack.
Always verify agent credentials through the Board of Valuers, Appraisers, Estate Agents and Property Managers Malaysia (BOVAEA) and check for Valid Practicing Certificates before engaging any agency.
What can different budgets buy in Johor's property market?
Your budget determines not just property type but also location, amenities, and investment potential in Johor's diverse market.
With RM250,000-400,000, buyers can access older high-rise apartments in suburban areas like Permas Jaya and Tebrau. These typically offer 700-900 sq ft with 2-3 bedrooms, basic facilities like parking and security, but may require renovation. First-time buyer schemes often target this range, making it accessible for young professionals and small families.
The RM400,000-600,000 range opens up newer condominiums with better facilities and small terrace houses in developing townships. Expect 1,000-1,200 sq ft condos with pools, gyms, and 24-hour security in areas like Setia Tropika or Horizon Hills. This sweet spot attracts both owner-occupiers and investors seeking rental income.
RM600,000-1,000,000 buys premium condominiums in prime locations or landed properties in established neighborhoods. Properties feature high-end finishes, comprehensive facilities, and locations near international schools or the RTS Link. This range offers the best balance of capital appreciation and rental yields.
Above RM1,000,000 enters luxury territory with waterfront condos, cluster homes in Country Garden Danga Bay, or bungalows in Leisure Farm. These properties target affluent locals and foreign buyers, offering resort-style living, expansive spaces over 2,000 sq ft, and exclusive community amenities.
Where are the best areas to buy - affordable, upcoming, or premium?
Johor offers distinct investment zones catering to different buyer profiles and investment strategies.
For affordable options, Tebrau and Permas Jaya provide established neighborhoods with good amenities at reasonable prices. Properties here range from RM300,000-500,000, attracting local middle-income families and first-time buyers. While capital appreciation is modest at 3-4% annually, these areas offer stable rental demand from local workers and students.
Upcoming areas like Iskandar Puteri and Gelang Patah represent the future of Johor's development. Iskandar Puteri, anchored by EduCity and Legoland, attracts families seeking modern master-planned communities. Properties range from RM500,000-1,200,000 with strong 5-7% annual appreciation potential. Gelang Patah, near the Second Link, benefits from eco-township developments and proximity to industrial zones, though infrastructure is still developing.
| Area Type | Best Locations | Price Range | Annual Appreciation | Rental Yield |
|---|---|---|---|---|
| Affordable | Tebrau, Permas Jaya, Skudai | RM300-500k | 3-4% | 4-5% |
| Upcoming | Iskandar Puteri, Gelang Patah | RM500k-1.2M | 5-7% | 4.5-6% |
| Premium | JB City Centre, Forest City | RM800k-3M | 4-6% | 5-7% |
| Ultra Affordable | Kulai, Kota Tinggi | RM250-400k | 2-3% | 3.5-4.5% |
| RTS Corridor | Bukit Chagar, Century Garden | RM700k-1.5M | 6-8% | 5.5-7% |
Premium areas like Johor Bahru City Centre and Forest City command the highest prices but offer superior connectivity and amenities. JB City Centre benefits directly from the RTS Link, while Forest City's Special Financial Zone status attracts international buyers despite oversupply concerns.
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How do living costs impact property investment decisions?
Johor's living costs, at roughly one-third of Singapore's, create a compelling investment case for both owner-occupiers and landlords.
A comfortable lifestyle in Johor requires RM2,500-4,500 monthly, compared to SGD3,500-6,000 in Singapore. This includes rent or mortgage (RM1,500-2,500), utilities (RM200-300), food (RM600-1,000), transport (RM400-600), and miscellaneous expenses. The cost differential makes Johor properties attractive to Singapore-based workers who can earn Singapore salaries while enjoying Malaysian living costs.
For property investors, lower living costs translate to stronger rental demand. Tenants can afford higher rents relative to local income levels because their overall expenses remain manageable. A Singapore worker paying RM2,500 rent in Johor still saves significantly compared to SGD2,500 rent in Singapore, even accounting for commute costs.
The cost advantage particularly benefits retirees and digital nomads who can stretch their budgets further. Property management and maintenance costs are also lower, with monthly condo maintenance fees averaging RM250-400 compared to SGD300-500 in Singapore, improving net rental yields for investors.
What mistakes do buyers commonly make and how can you avoid them?
Understanding common pitfalls can save buyers significant money and stress in Johor's property market.
The most expensive mistake is ignoring total transaction costs. Buyers often budget only for the property price, forgetting the additional 7-8% in stamp duties, legal fees, and state levies. For a RM1 million property, this means an extra RM70,000-80,000 needed upfront. Always calculate total costs before committing to avoid financial strain.
Buying off-plan without proper due diligence ranks as the second major error. While new launches offer attractive prices and payment plans, some projects face delays or abandonment. Always verify developer track records through KPKT's database, check construction permits, and prefer developers with completed projects in Johor. Never pay deposits directly to developers - use lawyer or stakeholder accounts.
Overestimating rental income devastates investment returns. Agents may quote best-case rental yields of 6-8%, but actual returns often hit 4-5% after vacancies and maintenance. Research actual rental listings in your target area, factor in 2-3 months annual vacancy, and budget for repairs. Properties near the RTS or international schools generally achieve more consistent occupancy.
Skipping professional help to save money backfires frequently. Experienced agents understand market dynamics, negotiate better prices, and spot potential issues. Lawyers ensure proper title searches and contract terms. The few thousand ringgit saved by going direct often results in tens of thousands lost through poor decisions or legal problems.
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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's daily life like for foreigners and does owning property help?
Life as a foreigner in Johor offers a unique blend of Malaysian culture with international conveniences, and property ownership can significantly enhance the experience.
The expatriate community in Johor has grown substantially, particularly in areas like Iskandar Puteri and Horizon Hills where international schools create natural community hubs. Foreigners report feeling welcomed by locals, though language can occasionally be a barrier outside major commercial areas. English is widely spoken in business settings, but learning basic Malay helps with daily interactions and shows respect for local culture.
Property ownership provides stability and eliminates rental uncertainties, particularly important for families with school-going children who need consistent addresses for enrollment. Owners can renovate to suit their preferences, install home security systems, and build relationships with neighbors more easily than transient renters. The sense of belonging that comes with ownership often leads to deeper community integration.
However, ownership also brings responsibilities like dealing with maintenance contractors, understanding strata management rules, and navigating local bureaucracy for utilities and services. Some gated communities have strict rules about renovations and pet ownership that may conflict with foreign owners' expectations.
The proximity to Singapore means foreigners can maintain connections to familiar brands, healthcare systems, and social networks while enjoying Johor's relaxed pace and lower costs. Many describe it as getting "the best of both worlds" - Singapore's efficiency when needed, Malaysia's warmth and affordability daily.
Which areas and tenants deliver the best long-term rental returns?
Strategic location selection and understanding tenant profiles are crucial for maximizing long-term rental income in Johor.
Properties within 5km of the RTS Link in areas like Bukit Chagar and Century Garden command premium rents of RM2,500-4,000 for 2-bedroom units, attracting Singapore-based professionals. These tenants typically sign 2-year leases and maintain properties well, providing stable income streams. Rental yields here reach 5-7% annually with minimal vacancy periods.
Iskandar Puteri properties near EduCity and international schools attract expatriate families paying RM3,000-6,000 monthly for landed homes. These education-focused tenants often commit to longer 3-year leases aligned with school terms, reducing turnover costs. The area's family-friendly amenities and security make it particularly appealing for this demographic.
Tebrau and Permas Jaya offer steady returns from local professionals and small families paying RM1,500-2,500 for condos. While individual rents are lower, consistent 4-5% yields and larger tenant pools mean shorter vacancy periods. These areas work well for investors seeking stable, hands-off investments.
Student rentals near universities like UTM provide consistent demand but require more active management. Room rentals generate RM400-700 per room monthly, potentially yielding 6-8% returns, but expect higher maintenance costs and tenant turnover. Corporate rentals to MNCs in Nusajaya offer premium rents but depend heavily on economic cycles and company policies.
What about short-term rentals - opportunities and regulations?
Short-term rentals in Johor present lucrative opportunities but require careful navigation of regulations and market dynamics.
The earning potential varies dramatically by location and property type. Properties near Legoland, JB City Centre, and Forest City can generate RM200-400 per night, with 60-70% occupancy rates during peak seasons yielding RM4,000-8,000 monthly. However, low seasons see occupancy drop to 30-40%, making annual returns less predictable than long-term rentals. Serviced apartments with hotel licenses command premium rates and face fewer regulatory hurdles.
- Check strata bylaws - Many condominiums prohibit short-term rentals under 3 months. Violating these rules can result in fines or legal action from management committees.
- Understand local council regulations - Johor requires short-term rental operators to register with local councils and comply with safety requirements including fire extinguishers and emergency exits.
- Consider tax implications - Short-term rental income is subject to Malaysian income tax, and foreign owners must appoint tax agents to ensure compliance.
- Factor in higher operating costs - Professional cleaning, keyless entry systems, utilities, and platform fees can consume 30-40% of gross revenue.
- Target the right locations - Tourist areas, business districts, and medical tourism zones near hospitals offer the best short-term rental potential.
Platform restrictions add another layer of complexity, with Airbnb and Booking.com requiring various permits and documentation. Success in short-term rentals demands active management or professional property management services charging 15-20% of revenue.
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.
As we reach mid-2025, Johor's property market presents a compelling opportunity for both investors and homeowners. The combination of major infrastructure developments, reasonable prices compared to Singapore, and steady rental yields creates favorable conditions for property investment. Whether you're seeking a home, rental income, or capital appreciation, Johor offers diverse options across different budgets and risk profiles.
Success in this market requires understanding the buying process, choosing the right locations, and avoiding common pitfalls. With proper research and professional guidance, buyers can capitalize on Johor's transformation into a major economic hub while building long-term wealth through strategic property investment.
Sources
- PropertyGuru Malaysia - Johor Property Listings
- BambooRoutes - Johor Real Estate Market Analysis
- CNA - Johor Property Prices Rise Due to Foreign Buyers
- KL Property - Johor Market 2025 Growth Analysis
- EdgeProp - JS-SEZ Investment Impact
- GPlex - Buy vs Rent Guide Malaysia
- PropertyGuru - Foreign Buyer's Complete Guide
- EmerHub - Foreign Property Purchase Regulations
- IQI Global - New Housing Developments Johor
- Global Property Guide - Malaysia Price History