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
Johor's property market is experiencing significant momentum in 2025, driven by major infrastructure developments and strong foreign investment.
The average property price in Johor stands at RM475,000 statewide as of September 2025, with Johor Bahru commanding RM588,000 median prices and select hotspots seeing price jumps of 20-30% since 2024.
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.
Johor's property market shows strong growth potential with 3-5% annual price increases and up to 50% appreciation expected in prime areas over the next five years.
Foreign buyers account for over 40% of transactions in Johor Bahru, while new infrastructure projects like the RTS Link drive demand in strategic locations.
| Area | Price Growth (2024-25) | Rental Yield | Investment Outlook |
|---|---|---|---|
| Johor Bahru City Centre | +40-50% since 2020 | 8% (prime areas) | Excellent |
| Iskandar Puteri | +30-40% since 2020 | 5.14-6.2% | Very Good |
| Medini | +25-35% since 2020 | 4-6% | Good |
| Tebrau | +15-20% since 2020 | 5-6% | Good |
| Pasir Gudang | +20-25% since 2020 | 5-6% | Moderate |
| Rural Johor | +5-10% since 2020 | 4-5% | Conservative |
What's the current average property price in Johor and how has it changed over the past year?
The average property price in Johor stands at RM475,000 statewide as of September 2025.
Johor Bahru specifically commands a higher median price of RM588,000, reflecting its status as the state's economic center and proximity to Singapore. High-end areas and premium condominiums in the city center are commanding even higher prices, with some luxury developments reaching well above this median.
Over the past year, Johor's property market has experienced steady growth with prices increasing 3-5% across most segments. However, this overall figure masks significant variations by property type and location. Serviced apartments and prime condominiums have seen dramatic jumps of up to 20-30% since 2024, driven by strong foreign demand and infrastructure developments.
Certain sectors have experienced even more dramatic growth, with some premium developments doubling year-on-year, particularly those located near major infrastructure projects like the upcoming RTS Link.
It's something we develop in our Malaysia property pack.
How do price trends differ between short term (next 6–12 months), medium term (1–3 years), and long term (3–5+ years)?
Johor's property market shows different momentum across various time horizons, with infrastructure projects driving the timeline.
In the short term (6-12 months), expect continued acceleration in key areas, especially near infrastructure projects and hotspots like Johor Bahru and Iskandar Puteri. The RTS Link and JS-SEZ projects are driving this momentum, with condo prices seeing the steepest monthly gains. This period will likely see sustained monthly appreciation rates above the historical average.
Medium term projections (1-3 years) forecast sustained growth of 5-10% annually in areas influenced by new transportation infrastructure. Suburban and rural areas will experience more modest growth of 5-15% over this entire period. The completion of key infrastructure projects during this timeframe will create differentiated performance between well-connected and isolated areas.
Long term outlook (3-5+ years) appears potentially robust, with the completion of RTS Link and expansion of JS-SEZ supporting significant city center gains. Select areas could see up to 50% appreciation over five years, particularly properties with direct access to new transportation networks and commercial developments.
The key differentiator across all timeframes will be proximity to completed infrastructure projects and access to Singapore.
Which areas of Johor are seeing the fastest growth in demand and which ones are stagnating or declining?
Johor's growth story is highly location-dependent, with clear winners and laggards emerging based on infrastructure access and development projects.
The fastest growth areas include Johor Bahru City Centre, which has seen 40-50% price increases since 2020, driven by RTS Link proximity and commercial development. Iskandar Puteri follows with 30-40% growth due to its planned city status and integrated developments. Medini has experienced 25-35% appreciation thanks to its position as a key development node, while Tebrau has seen 15-20% growth due to industrial and residential expansion. Pasir Gudang rounds out the growth leaders with 20-25% increases, benefiting from port proximity and logistics development.
Conversely, rural Johor areas have seen modest 5-10% growth, significantly lagging urban centers. Some suburban areas are experiencing stagnation due to oversupply issues or weak demand fundamentals. Parts of Johor impacted by affordability concerns or poor connectivity to major employment and commercial centers are also underperforming.
The growth pattern clearly favors areas with direct infrastructure connections, proximity to Singapore, and active commercial or industrial development projects.
How do landed houses, condos, and commercial properties compare in terms of pricing trends and demand outlook?
Different property types in Johor are experiencing vastly different performance trajectories, reflecting varying demand drivers and investment preferences.
| Property Type | Price Trend (2024-25) | Demand Outlook | Rental Yield Range |
|---|---|---|---|
| Landed Houses | +8.6% | Steady, moderate growth | 5-6% |
| Condos/Serviced Apartments | +20.4% | Fastest growth, premium demand | 4-8% (prime locations) |
| Commercial Properties | +54.9% in key zones | Strong in Iskandar/Medini | 4-6% |
| Student Housing | +15-25% | Stable, niche demand | Up to 8% |
| Industrial/Logistics | +20-30% | Growing with SEZ development | 5-7% |
What's the current rental yield across different areas and property types in Johor?
Rental yields in Johor vary significantly by location and property type, with prime areas commanding premium returns.
Johor Bahru averages 5.47% rental yield across all property types, but this figure masks significant variation. Prime RTS corridors are achieving up to 8% yields due to high demand from cross-border workers and investors. Iskandar Puteri delivers solid returns of 5.14-6.2%, reflecting its planned development status and quality infrastructure.
Landed homes typically generate 5-6% yields, with the strongest performance in suburban locations where purchase prices remain reasonable relative to rental demand. Student housing and serviced residences can achieve up to 8% yield in select zones, particularly near educational institutions and business districts.
Commercial properties in prime locations are generating 4-6% yields, while some specialized logistics and industrial properties are achieving 5-7% returns due to JS-SEZ development and increased business activity.
The highest yields are concentrated in areas with strong rental demand fundamentals: proximity to Singapore, transportation links, employment centers, and educational institutions.
How strong is the resale market right now and what are the expected resale values by area in the coming years?
Johor's resale market is showing strong momentum in strategic locations, with healthy transaction volumes and reducing property overhang.
The resale market is particularly robust in city center areas and the RTS corridor, where transaction volumes remain above average and capital gains are exceeding general market trends. High-rise properties and commercial launches are seeing especially strong resale activity, driven by both local upgraders and foreign investors looking for completed properties.
Expected resale values show significant geographic variation. Prime areas like Johor Bahru City Centre and Iskandar Puteri are projected to maintain strong resale value appreciation over the coming years, supported by infrastructure completion and sustained demand. Properties with direct RTS Link access are expected to command premium resale values as the project nears completion in 2026.
However, suburban and affordable segments face more modest resale potential due to lingering oversupply issues in certain price brackets. Areas lacking direct infrastructure access or with weak employment fundamentals may see more subdued resale performance.
The key to strong resale performance will be location selection, with infrastructure-connected properties significantly outperforming isolated developments.
What's the supply pipeline looking like—how many new developments are being launched and in which areas?
Johor leads Malaysia in new residential launches for 2025, indicating strong developer confidence and market demand.
Key developments are concentrated in proven growth areas: Johor Bahru, Iskandar Puteri, Tebrau, and Pasir Gudang are seeing the majority of new launches. These areas benefit from existing infrastructure, proven demand, and proximity to employment centers and Singapore.
Planned expansion extends beyond residential properties, with significant commercial and logistics hub development in Senai, Kulai, and Sedenak. This development aligns with JS-SEZ expansion plans and anticipated increased business activity from the special economic zone.
The supply pipeline indicates developer focus on areas with proven fundamentals rather than speculative development in untested locations. This suggests a more mature and strategic approach to new supply, which should help prevent oversupply issues that have plagued some markets.
Mixed-use developments combining residential, commercial, and retail components are becoming increasingly common, reflecting demand for integrated lifestyle options.
Don't lose money on your property in Johor
100% of people who have lost money there have spent less than 1 hour researching the market. We have reviewed everything there is to know. Grab our guide now.
How is foreign buyer activity influencing the Johor real estate market today?
Foreign buyers are a dominant force in Johor's property market, accounting for more than 40% of transactions in Johor Bahru as of September 2025.
This significant foreign participation is driven primarily by proximity to Singapore and favorable exchange rates between the Malaysian Ringgit and Singapore Dollar. Foreign buyers, particularly Singaporeans, are attracted to the value proposition of Johor properties compared to Singapore's high prices.
Foreign buyers typically pay 20-30% above local buyers for premium units, creating a two-tier pricing system that benefits sellers but can price out local buyers in certain segments. This premium reflects both willingness to pay for quality and limited inventory in foreigner-preferred developments.
Recent policy changes have introduced some headwinds. From July 2025, foreign buyer levies increased from 2% to 3% with a minimum of RM30,000, slightly dampening immediate demand. However, the underlying value proposition remains strong enough to maintain long-term foreign interest.
Foreign buyer activity is concentrated in prime condominiums, serviced residences, and landed properties in well-established areas with good connectivity to Singapore.
What government policies or infrastructure projects are likely to impact property values in the short, medium, and long term?
Government policies and infrastructure projects are the primary drivers of Johor's property market trajectory across all time horizons.
In the short term, the JS-SEZ (Johor-Singapore Special Economic Zone) and RTS Link completion scheduled for 2026 are creating immediate market momentum. New MOT fee structures have raised transaction clarity and costs for higher-end segments, but this increased transparency is generally positive for market confidence.
Medium-term impacts include the full implementation of JS-SEZ benefits, which will attract substantial foreign direct investment and create employment opportunities. The completed RTS Link will transform connectivity between Johor and Singapore, making cross-border living and working much more feasible.
Long-term infrastructure expansion includes broader SEZ project development and substantial FDI targeted at catalyst sectors including technology, manufacturing, and logistics. These projects are expected to sustain property price growth, support employment expansion, and enhance overall market resilience.
Policy changes affecting foreign buyers will continue to influence market dynamics, but the fundamental infrastructure developments provide strong underlying support for property values.
It's something we develop in our Malaysia property pack.
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.
Where can you find the best opportunities if you're buying for your own living needs versus buying for rental income versus buying for future resale?
Different investment objectives require different location and property type strategies in Johor's diverse market.
For own living needs, focus on areas with proven appreciation potential and quality infrastructure access. Iskandar Puteri offers excellent planned community living with good amenities and growth potential. Tebrau provides more affordable entry points while maintaining good connectivity. Bukit Chagar, close to the RTS Link, offers future convenience for cross-border commuting.
For rental income optimization, prime condos near the RTS corridor and university districts generate the highest yields. Serviced residences in business districts attract premium rents from expatriate tenants and business travelers. Student housing near educational institutions provides stable rental demand with yields reaching up to 8%.
For future resale potential, city center condos in Johor Bahru represent the strongest appreciation prospects. Commercial launches in Iskandar and Medini benefit from ongoing development momentum. RTS corridor properties will likely command significant premiums once the link is operational.
The key is matching your investment timeline and risk tolerance with the appropriate location and property type combination.
What budget ranges are most competitive right now, and where are the undervalued segments of the market?
Johor's property market shows clear competitive zones and undervalued opportunities depending on your budget and investment strategy.
The most competitive purchase range currently sits at RM400,000-RM750,000 for both landed homes and high-rise properties. This range attracts both local upgraders and foreign buyers, creating strong competition and price pressure.
Undervalued opportunities exist in several segments. Tebrau offers good value with lower entry costs but strong growth potential due to industrial development. Kulai provides affordable options with decent connectivity and room for appreciation. Pasir Gudang, despite slower growth, offers value for patient investors willing to wait for infrastructure development.
Student housing represents an undervalued niche market with stable rental demand and reasonable acquisition costs. Affordable housing units under RM500,000, while facing some oversupply, may offer opportunities for long-term investors willing to wait out current market conditions.
Areas away from direct infrastructure access still offer opportunities for patient capital and long-term growth, particularly for investors who can identify locations likely to benefit from future development phases.
What risks should buyers be aware of—whether in terms of oversupply, financing, or shifting demand across different property types and locations?
Several significant risks require careful consideration when investing in Johor's property market as of September 2025.
Oversupply risk remains a key concern, especially in high-rise segments and affordable housing units under RM500,000. Despite recent absorption improvements, certain areas and price points still face inventory overhang that could pressure prices and rental yields.
Financing challenges include increased upfront transaction costs and new MOT fee structures affecting both local and foreign buyers. These additional costs require careful budget planning and may reduce effective purchasing power for some buyers.
Market concentration risk stems from heavy dependence on foreign buyers and Singapore's economic health. If Singapore's economy slows or cross-border policies change, demand could decrease significantly. Global economic volatility could also impact foreign investment flows.
Location-specific risks include betting on unproven areas without confirmed infrastructure development. Properties in areas dependent on planned but not yet confirmed projects face completion and timeline risks.
Affordability erosion for local buyers could lead to policy changes that might impact foreign buyer privileges or market dynamics.
It's something we develop in our Malaysia property pack.
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.
Johor's property market presents compelling opportunities for informed investors, with infrastructure-driven growth creating clear winners in strategic locations.
Success requires careful location selection, understanding of policy impacts, and alignment between investment objectives and market realities in this dynamic and rapidly evolving market.
Sources
- IQI Global - Johor Property Price Analysis
- BambooRoutes - Johor Price Forecasts
- Free Malaysia Today - Johor Bahru Property Prices Surge
- Global Property Guide - Malaysia Price History
- RinggitPlus - Johor Bahru Property Prices 2Q 2025
- WargaBiz - Johor Property Market 2025
- Star Property - Property Price Trend Surge in Johor
- Yahoo News Singapore - JS-SEZ Raise Demand
- BambooRoutes - Malaysia Real Estate Forecasts
- IQI Global - New Housing Developments Johor