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
Why is Johor emerging as a prime destination for property investment in 2025? Is it the strategic location near Singapore, the rapid urban development, or the competitive pricing compared to other Southeast Asian markets? What are the key advantages for investors?
We get asked these questions all the time because we’re on the ground, working closely with developers, real estate agents, and investors like you. With so much interest in this market, we’ve decided to turn our individual answers into a comprehensive article for everyone to benefit from.
Our goal is to provide a clear case for investing in Johor's property market, backed by our firsthand experience and market knowledge.
If you think we missed an important point in our content or want to know more, don’t hesitate to reach out (we answer super fast). Your feedback makes our content even stronger.
Finally, please note that this is not financial or investment advice. Investing in real estate carries inherent risks, and market conditions can change unexpectedly. We strongly encourage you to conduct thorough research and consult with a qualified financial advisor before making any investment decisions.
How this content was created 🔎📝
3) Johor's diverse economy in manufacturing and logistics ensures stable job growth
Johor's economy is thriving, especially in manufacturing and logistics.
In 2023, Johor's manufacturing sector grew by 2.8% year-on-year, outpacing the national average of 0.7%. This boom is thanks to industries like electronics, automotive, and petrochemicals, which are all buzzing with activity.
Logistics is another powerhouse for Johor. The Port of Tanjung Pelepas (PTP) is a major player, being one of Malaysia’s busiest ports. It handles a huge chunk of the country's container traffic, making it a key contributor to Johor's economic success.
Johor's impact on Malaysia's economy is significant, making up 9.5% of the national GDP in 2023. The state is also a trade giant, responsible for about 29% of the national total trade, which is a whopping RM753.1 billion.
Government-approved projects have been a boon for job creation, with over 19,000 new jobs popping up in 2023. This is great news for anyone looking to move to Johor, as the job market is robust and growing.
Sources: The Edge Malaysia, Allen & Gledhill, MIDF
4) Being close to Singapore, Johor attracts expats and commuters, boosting rental demand
Johor's closeness to Singapore is a magnet for expatriates and commuters.
Every day, over 300,000 Malaysians cross the Johor-Singapore Causeway, making it one of the busiest border crossings around. This constant flow of people shows a strong need for housing near the border.
For expatriates, Johor Bahru is a budget-friendly alternative to Singapore. While a single room in Singapore can set you back at least SG$700-800 monthly, in Johor, you can rent a whole 3-4 bedroom apartment for the same price. This cost-effectiveness, along with international schools and amenities, makes Johor a great spot for expatriate families.
Infrastructure is getting a boost with projects like the new railway line and the Johor Bahru Singapore Rapid Transit System (RTS). By 2026, these developments will cut down travel time across the border, making Johor even more attractive for those working in Singapore but living in Malaysia.
Johor's appeal is not just about cost savings. The region is evolving with new amenities and lifestyle options, making it a vibrant place to live. Expatriates and commuters find the blend of affordability and convenience hard to resist.
With these ongoing developments, Johor is poised to become an even more popular choice for those looking to enjoy the benefits of both Malaysia and Singapore. The potential for high rental demand is evident as more people seek the best of both worlds.
Sources: Channel News Asia, Official MM2H, Asian Century Stocks, The Perfect Media Group
5) Johor’s prime location as a trade hub in Southeast Asia drives economic growth and increases housing demand
Johor's strategic location in Southeast Asia is a major factor in its booming economy and rising housing demand.
In 2023, Johor's trade value hit RM753 billion, making up 29% of Malaysia's total trade. This underscores Johor's role as a key player in regional trade, drawing in businesses and investors eager to capitalize on its strategic position.
Industrial parks like the proposed Johor-Shenzhen Industrial Park are popping up, offering companies the infrastructure they need. These developments are magnets for multinational companies, which in turn boost economic growth and create a surge in housing demand as more people flock to Johor for work.
Johor's closeness to Singapore is another big plus, enhancing cross-border economic activities. Initiatives like the Johor-Singapore Special Economic Zone are sparking trade and innovation, making Johor a sweet spot for businesses aiming to tap into both markets.
This close relationship with Singapore not only fuels economic growth but also drives housing demand, as professionals and families seek homes in Johor to take advantage of job opportunities and the vibrant lifestyle.
Sources: MIDA News, MIDA News, MIDF Report
Make a profitable investment in Johor
Better information leads to better decisions. Save time and money. Download our guide.
6) With Johor’s beautiful coastline and islands, you can easily rent out your property short-term
Johor's stunning coastline and islands have become a major draw for tourists in recent years.
In 2019, Johor welcomed over 9.4 million visitors, and this number is expected to grow thanks to ongoing tourism development. The state's coastal areas and islands offer unique experiences that captivate both domestic and international travelers.
One standout development is the Desaru Coast, which features luxury resorts and integrated tourism projects. This area has become a favorite for tourists, boosting Johor's reputation as a top destination. The local government is also investing heavily in tourism infrastructure, further enhancing the region's appeal.
This surge in tourism has led to a boom in short-term rental opportunities, especially in coastal regions. The rise in Airbnb listings and bookings in Johor highlights the thriving short-term rental market, fueled by the influx of visitors eager to explore the state's attractions.
As more tourists flock to Johor, the demand for unique experiences along its coastline and islands continues to grow. This trend is expected to persist, offering lucrative opportunities for property investors interested in the short-term rental market.
Sources: Tourism In Johor - Tourism Teacher, Johor targeting top spot as Malaysia's premier tourist destination..., New king heralds renewed tourism interest in Johor | TTG Asia
7) Johor's cultural festivals attract visitors, making short-term rentals more profitable
Johor's cultural festivals are a big draw for visitors, boosting the short-term rental market significantly.
In 2023, Johor welcomed around 11.3 million visitors, thanks to events like the Majestic Johor Festival and the Pasir Gudang International Kite Festival. These festivals alone attracted nearly 650,000 and half-a-million visitors, respectively, making them major attractions.
During these vibrant festival times, short-term rentals in Johor Bahru experience a noticeable uptick. Airbnb listings, for example, saw a 45% average occupancy rate from August 2023 to July 2024, with peaks during major festivals. This pattern shows how these cultural events fuel the demand for places to stay.
For property owners, this means a chance to earn more. A property with a 74% occupancy rate can bring in substantial income, with daily rates reaching up to MYR437 for a 4-bedroom property. This revenue boost is often supported by collaborations between event organizers and local accommodations, creating joint tourism efforts.
Sources: The Star, Airbtics, The Star
8) With new public transport, Johor’s residential areas are now more accessible
The new public transport systems in Johor, like the Johor Bahru-Singapore Rapid Transit System (RTS) Link, are transforming access to residential areas.
By 2027, the RTS Link, which is already 83% complete as of mid-2024, will connect Johor Bahru and Singapore more efficiently. This project, backed by the Johor state government and the Ministry of Transport, is part of a broader plan to enhance the local transportation network. With RM1.7 billion invested in infrastructure, the RTS Link is a game-changer for residents.
Living near new transit stations like Bukit Chagar means more convenient travel options. This has sparked a surge in housing demand in these areas, as people are eager to benefit from the improved accessibility. The ease of commuting is a major draw for those working in Singapore but residing in Johor.
Studies highlight that the RTS Link will significantly cut commute times, making daily travel smoother and less congested. This is a boon for residents who face long commutes, offering a faster and more reliable alternative. The convenience of living near these transport links is expected to boost property values as more people seek homes in these well-connected areas.
For potential buyers, this development means not just better transport but also a promising investment opportunity. The improved infrastructure is likely to enhance the overall quality of life, making these residential areas more attractive. The RTS Link is more than just a transit project; it's a catalyst for growth and accessibility in Johor.
Sources: Bernama, Mothership, The Star
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.
10) With expanding healthcare, Johor is ideal for retirees and medical tourists looking for long-term stays
Johor is quickly becoming a hotspot for retirees and medical tourists thanks to its expanding healthcare facilities.
Plans are underway to open new public hospitals, like the one in Pasir Gudang, and to expand existing ones in Nusajaya and Kulai. This means more healthcare services are available, a big draw for retirees eyeing long-term stays. The Johor state government is also pouring RM1.7 billion into infrastructure, upgrading roads and building highways, which improves access to these healthcare facilities.
Medical tourism is on the rise here, with a 17% increase in healthcare tourist arrivals in early 2024 compared to the previous year. International partnerships, like KPJ Johor Specialist Hospital teaming up with apoQlar for 5G-enabled VSI holomedicine, are making Johor a go-to for high-quality medical care.
Iskandar Malaysia (IM) is a magnet for well-off retirees, thanks to its specialized medical centers and wellness facilities. These centers offer advanced healthcare and long-term care services, making IM Johor's leading healthcare hub. This clustering of private healthcare resources is a major reason why retirees and medical tourists are flocking to Johor.
Sources: Thematic Report - MIDF, Johor Medical Tourism Promotion, The Private Healthcare Sector in Johor, Reimagining Healthcare, Malaysian Economy - Enhancing the Future of Medical Tourism
11) The Iskandar Malaysia project is enhancing infrastructure, which boosts property values
The Iskandar Malaysia project is a game-changer for infrastructure and property values.
By 2023, the project had already smashed its initial investment goals, hitting RM409.5 billion and setting sights on RM636 billion by 2030. This massive cash flow has kickstarted major projects like the Kempas Interchange and Tunku Mahkota Ismail Youth Centre, transforming the landscape.
In 2024, property prices in Johor started climbing, thanks to economic growth and new infrastructure. The Rapid Transit System (RTS) Link between Johor Bahru and Singapore is a big deal, boosting connectivity and making Johor a hot spot for buyers. Areas like Iskandar Puteri and Johor Bahru City Centre are seeing a surge in demand, with luxury homes and limited stock driving interest.
Once the Johor Bahru-Singapore RTS Link is up and running by the end of 2026, it’s expected to handle 100,000 passengers daily. This will not only ease cross-border travel but also make the region even more appealing. The influx of foreign investments and multinational companies is cementing Iskandar Malaysia as a prime economic hub.
With these developments, the region is becoming a magnet for both local and international property buyers. The strategic location and improved infrastructure are key factors in this growing interest.
Sources: The Star, Met Property, MIDA
Get fresh and reliable information about the market in Johor
Don't base significant investment decisions on outdated data. Get updated and accurate information with our guide.
12) International companies in Johor drive demand for executive housing
Johor is now a major hub for international companies, especially in the booming data center market.
With big players like Nvidia and AirTrunk setting up shop, Johor has become Malaysia's largest data center market. This influx of multinational corporations brings in a wave of foreign executives and workers who need places to live.
These international companies attract a significant number of expatriates, who often seek high-quality housing that matches their lifestyle and work needs. Executive housing steps in to offer the amenities and standards these professionals expect.
Johor's strategic location and infrastructure developments, like the Rapid Transit System linking Johor Bahru and Singapore, make it even more appealing as a business hub. This connectivity supports business growth and makes Johor an attractive place for expatriates to settle.
As a result, there's a noticeable increase in demand for executive housing, driven by the presence of these international companies. The need for such housing is not just about luxury; it's about providing a comfortable and convenient living environment for those working in high-stakes roles.
Sources: SME Bank, MET Property, Azmi & Associates
14) With international schools and universities, Johor’s education sector draws families looking for homes
Johor's education sector is booming, drawing families in search of quality schooling for their children.
In recent years, there's been a 34% rise in local student enrollment in international schools, with a significant number of Bumiputera students joining. This trend is particularly appealing to families from Singapore, who are increasingly enrolling their children in Johor's schools.
The presence of 29 international schools makes Johor a top choice in Malaysia for international education. The EduCity at Iskandar is a standout project, aiming to establish a premier higher education hub, aligning with Malaysia's ambition to be a regional education leader.
Johor's Special Economic and Financial Zones are expected to further enhance its appeal, potentially increasing the influx of families seeking educational opportunities. The strategic location and growing infrastructure make Johor an attractive option for those considering relocation.
Families are drawn not just by the schools but by the overall lifestyle and opportunities Johor offers. The region's development is closely tied to its educational growth, making it a compelling choice for those prioritizing education.
Sources: Malay Mail, British Council, NAFSA
While this article provides thoughtful analysis and insights based on credible and carefully selected sources, it is not, and should never be considered, financial advice. We put significant effort into researching, aggregating, and analyzing data to present you with an informed perspective. However, every analysis reflects subjective choices, such as the selection of sources and methodologies, and no single piece can encompass the full complexity of the market. Always conduct your own research, seek professional advice, and make decisions based on your own judgment. Any financial risks or losses remain your responsibility.
Related analyses:
- Overview of the current state of the real estate market in Johor