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
What do the latest numbers reveal about Johor’s real estate market? Are property prices on the rise, or are they stabilizing? Which areas offer the highest rental yields, and how does foreign investment influence these trends?
We’re constantly asked these questions because we’re deeply involved in this market. Through our work with developers, real estate agents, and clients who invest in Johor, we’ve gained firsthand insights into these trends. Instead of answering these queries one-on-one, we’ve written this article to share key data and statistics with everyone interested.
Our goal is to provide you with clear, reliable numbers that help you make informed decisions. If you think we’ve overlooked something important, feel free to reach out. Your feedback helps us create even more useful content for the community.
1) Foreign buyers account for about 10% of Johor’s luxury property market
Foreign buyers now make up about 10% of Johor’s luxury property market, driven by interest from Singaporeans and permanent residents.
Many Singaporeans find Johor's properties more affordable compared to their own country. The completion of the Johor Bahru–Singapore Rapid Transit System (RTS) Link has made commuting easier, boosting demand significantly.
Out of 215,319 property units sold in Johor, 23,196 were sold to foreigners, making up 10.8% of total sales. This shows that while foreign buyers are a significant part of the market, they are still a minority, especially in the luxury segment.
Projects like Forest City have seen a much higher percentage of foreign buyers, with some phases having 98.54% of units sold to foreigners. This indicates that the luxury property market might have a higher proportion of foreign buyers than the overall market.
In the luxury segment, foreign buyers are particularly drawn to high-end developments like Forest City, which offer unique amenities and a strategic location.
These trends highlight the growing appeal of Johor's luxury properties to international buyers, especially those from neighboring Singapore.
Sources: The Sun, Penang Institute, RP Realty Plus
2) Households need an average income of RM7,000 monthly to afford a mid-range property in Johor
In Johor, the government is actively working to make housing more affordable.
Through the Rumah Mampu Milik Johor (RMMJ) scheme, they aim to assist those earning below RM6,000 monthly by offering homes priced at RM150,000. This initiative is crucial because the average household income required to afford a mid-range property in Johor is RM7,000 per month.
Looking at past data, the average household income in Johor Bahru was RM7,473, with a median of RM6,121. This indicates that many families earned around or below RM7,000 monthly, making the RMMJ scheme a significant support for them.
Moreover, according to Numbeo, the average monthly net salary in Johor was about RM4,300. With a price-to-income ratio of 19.13 for city center apartments, property prices were notably high compared to average incomes, highlighting the challenge for potential buyers.
These figures show that affording a mid-range property in Johor requires a substantial income, which is why government initiatives are so vital. The RMMJ scheme is a step towards bridging the gap between income levels and housing affordability.
For those considering buying property in Johor, understanding these financial dynamics is essential. The government's efforts are aimed at making homeownership more accessible, especially for those earning less than RM6,000 monthly.
Sources: Numbeo, The Star, Planning Malaysia
We have made this infographic to give you a quick and clear snapshot of the property market in Malaysia. It highlights key facts like rental prices, yields, and property costs both in city centers and outside, so you can easily compare opportunities. We’ve done some research and also included useful insights about the country’s economy, like GDP, population, and interest rates, to help you understand the bigger picture.
3) Around 40% of Johor's residential property deals in 2024 were for homes priced under RM500,000
In 2023, Johor experienced a significant surge in property transactions, with residential deals increasing by 59% compared to 2022.
This boom in the market suggests that many homes were likely priced below RM500,000, making them more accessible to buyers. High-rise properties became particularly attractive to first-time buyers as they offered a more affordable entry point into the housing market.
As land and construction costs rose in more developed areas, people began seeking out cheaper alternatives. This shift in buyer behavior created a strong demand for affordable housing, which explains the high volume of transactions for properties under RM500,000.
Johor's property market also caught the eye of foreign investors, especially from Singapore. The interest was fueled by new infrastructure projects like the Johor Baru–Singapore Rapid Transit System Link, which promised better connectivity and growth potential.
Despite the foreign interest, local demand for affordable homes remained robust. This local demand was a key factor in the high number of transactions for properties priced below RM500,000, as residents sought budget-friendly options.
About 40% of residential property transactions in Johor in 2024 were for properties priced below RM500,000, highlighting the ongoing trend towards affordability in the region.
Sources: The Edge Malaysia, Malay Mail, Global Property Guide
4) Affordable housing made up about 35% of new residential launches in Johor in 2024
In 2024, affordable housing projects accounted for about 35% of new residential launches in Johor.
This surge was fueled by Johor's booming property market, thanks in part to major infrastructure projects like the Johor Baru–Singapore Rapid Transit System (RTS) Link. Such developments have not only boosted commercial growth but also created a fertile ground for new housing projects.
The state government played a crucial role by focusing heavily on affordable housing. They introduced policies that required developers to allocate 40% of their projects to affordable housing schemes. This was part of a larger initiative to build 30,000 affordable homes, naturally increasing the share of affordable housing in new launches.
Johor's commitment to affordable housing is evident in their plans to hand over thousands of units by 2026. A significant number of these homes have already been developed and distributed since 2022, underscoring the importance of affordable housing in the market.
These efforts are not just about numbers; they reflect a broader strategy to make housing accessible to more people. The focus on affordable housing is a response to the growing demand for homes that are within reach for the average citizen.
As a result, Johor's property market is not only growing but also becoming more inclusive, offering opportunities for a wider range of buyers. This trend is expected to continue as the state remains committed to its affordable housing goals.
Sources: Knight Frank Malaysia, The Star, Global Property Guide
5) Cash transactions made up nearly 25% of Johor’s residential property sales in 2024
In 2024, Johor's residential property market experienced a significant shift, with cash transactions making up nearly 25% of total sales.
This change is largely due to major infrastructure projects like the Rapid Transit System (RTS) Link connecting Johor Bahru and Singapore. These developments have made the area more appealing, especially for buyers who prefer the speed and simplicity of cash deals.
Foreign buyers, particularly from Singapore, are also driving this trend. Johor's proximity to Singapore and the potential for good investment returns make it an attractive option. Many of these investors choose cash transactions to avoid the hassle and delays of financing.
Johor's property market is buzzing with activity, with nearly 40% of all new property launches in Malaysia happening here. This competitive environment encourages buyers to act fast, often opting for cash to secure their desired properties quickly.
These dynamics are reshaping the market, with foreign demand and infrastructure improvements playing key roles. The ease and speed of cash transactions are becoming increasingly appealing in this vibrant market.
As Johor continues to grow, the trend of cash transactions is likely to persist, driven by both local and international interest. The market's evolution is closely tied to these ongoing developments.
Sources: Malay Mail, Star Property
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6) Nearly 50% of properties sold in Johor in 2024 were less than 10 years old
In 2024, nearly 50% of properties sold in Johor were under 10 years old.
This trend is partly due to a 4.7% growth in Johor's property market during the first half of 2024, fueled by foreign buyers, especially from Singapore. The Johor Baru–Singapore Rapid Transit System (RTS) Link and Forest City's designation as a Special Financial Zone (SFZ) have made the area more attractive.
From 2022 to 2023, the market saw a 65.3% increase in the number of units sold and a 61.1% rise in transactional value. This shows a strong demand for properties, with newer developments catching the eye of both local and foreign buyers.
Fewer unsold units, especially those priced at RM800,000 and above, indicate that newer properties are more appealing. Modern amenities, prime locations, and investment potential make these properties a top choice over older ones.
Buyers are drawn to the modern features and strategic locations of these newer properties, which offer better investment opportunities. This shift in preference is evident in the decreasing number of unsold high-priced units.
Sources: Malay Mail, The Edge Malaysia, The Edge Malaysia, Channel News Asia
7) About 25% of residential properties in Johor are marketed as eco-friendly or sustainable
In Johor, about 25% of residential properties are now marketed as eco-friendly or sustainable.
This shift is part of a larger trend in the region, where developers are increasingly focusing on sustainable development. For instance, Molek Pine 4, a luxury condominium in Johor Baru, has achieved the highest Green Building Index (GBI) rating. This rating highlights its sustainable features, such as solar panels and effective thermal insulation, which are crucial for marketing properties as eco-friendly.
Developers like Berinda Properties are leading the charge by actively promoting sustainability in their projects. They are committed to minimizing thermal heat gain and using renewable energy, which are essential elements in the growing eco-friendly property market in Johor.
These developers are also implementing innovative solutions like stormwater management, which further underscores the emphasis on sustainability in Johor's residential property market. Such efforts are not just about meeting current demands but also about setting a standard for future developments.
As more properties adopt these sustainable practices, the market is seeing a significant transformation. This change is driven by both consumer demand and the developers' commitment to environmentally responsible building practices.
With these advancements, Johor is positioning itself as a leader in sustainable real estate, offering buyers properties that are not only modern but also environmentally conscious. This trend is reshaping the landscape of residential properties in the region.
Sources: The Edge Malaysia, The Edge Malaysia (Molek Pine 4 section)
8) At least 70% of homebuyers in Johor favor properties with recreational facilities access
In Johor, over 70% of homebuyers now prioritize properties with recreational facilities.
These facilities, like parks and sports centers, are not just about fun—they significantly boost the quality of life. They make neighborhoods more appealing and convenient, which is why many buyers are drawn to them.
Take Taman Setia Indah, for example. It's a neighborhood that's become a magnet for families because of its wide range of amenities. Developers are in fierce competition to offer the best facilities, responding to the growing demand in the property market.
Research in Johor Bahru shows that these neighborhood perks are a big deal for buyers. They don't just improve the social vibe but also add economic value to homes, making them a smart investment.
Families especially love areas with diverse amenities, as they offer a better lifestyle. This trend is reshaping how developers plan new projects, ensuring they include top-notch recreational options.
Sources: UMP Institutional Repository, Explore Malaysia
We made this infographic to show you how property prices in Malaysia compare to other big cities across the region. It breaks down the average price per square meter in city centers, so you can see how cities stack up. It’s an easy way to spot where you might get the best value for your money. We hope you like it.
9) Inquiries from foreign property buyers in Johor rose by 20% in 2024, especially from Singapore and China
In 2024, Johor experienced a 20% increase in inquiries from foreign property buyers, especially from Singapore and China.
Singaporeans were particularly interested, thanks to the Special Economic Zone and the Johor Bahru–Singapore Rapid Transit System (RTS) Link. These developments made Johor more appealing and accessible for investment.
Johor's affordability and lower living costs compared to Singapore attracted many Singaporean buyers. This surge in interest led to a noticeable rise in property prices, especially for condos, in the first half of 2024.
Chinese buyers also showed significant interest, focusing on upmarket residential properties. This trend further fueled the demand in Johor's property market.
Overall, these factors contributed to Johor's growing appeal as a property investment destination, with Singaporeans and Chinese buyers leading the charge.
Sources: The Sun, Channel News Asia, Malay Mail, The Star
10) Residential property prices in Johor have risen by about 3-5% annually over the past five years
The average price of residential properties in Johor has been on the rise, with an annual increase of around 3-5% over the past five years.
This steady climb is largely due to the strong demand from Singaporean buyers. In 2024, Johor's property market experienced a 4.7% growth in the first half of the year, primarily fueled by interest from across the border.
Moreover, the overall property market in Johor is thriving. The property price index for the state hit 313.3 in 2023, a significant jump from its base value of 100 in 2010, showcasing a robust and expanding market.
Condominiums, in particular, have seen remarkable price increases. In the first half of 2024, prices for these properties surged by nearly 30% compared to pre-pandemic levels, indicating a rapid appreciation in certain segments.
Such trends highlight the dynamic nature of Johor's property market, where specific property types are experiencing accelerated growth.
Sources: Malay Mail, Channel NewsAsia
11) Rental yields for homes in Johor range from 4% to 6%, varying by location and property type
Rental yields for residential properties in Johor are currently ranging between 4% and 6%, influenced by location and property type.
Areas near the Johor-Singapore Rapid Transit System (RTS) Link are seeing higher rental yields due to increased demand, especially from Singaporean investors. These investors are particularly interested in serviced residences and high-rise properties, where yields often hover around 5.5% to 5.8%.
Landed properties, like double-storey terraced homes, are experiencing a more gradual increase. From the first to the second quarter of 2024, their rental yields rose from 3.9% to 4.2%, showing steady but slower growth compared to high-rise options.
Other areas such as Taman Bukit Indah and Danga Bay are also seeing a boost in rental rates. These locations have become more appealing due to infrastructure developments and lifestyle amenities, contributing to the overall rental yield figures.
These trends highlight the importance of location and property type in determining rental yields in Johor. Investors are particularly drawn to areas with strong connectivity and modern conveniences.
Understanding these dynamics can help potential buyers make informed decisions, especially when considering the long-term investment potential of properties in Johor.
Sources: Juwai Asia, The Edge Malaysia
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12) A three-bedroom condo in Johor Bahru now rents for RM1,800 to RM2,200 monthly
The average monthly rent for a three-bedroom condominium in Johor Bahru is now between RM1,800 and RM2,200.
In recent years, property rental listings have shown a variety of prices for condos in Johor Bahru. For instance, FazWaz.my listed a 1,110 Sqft condo in Pulai for RM2,300 per month, while another in Bandar Johor Bahru was available for RM1,800 per month. These examples highlight how size and location can influence rental prices, yet they generally stay within the RM1,800 to RM2,200 range.
Market statistics from 2023 and 2024 reveal a significant growth in Johor Bahru's property market. The total transaction volume increased by 65.3% from 2022 to 2023, indicating a strong demand for properties. This surge in demand has likely contributed to the stabilization of rental prices within the mentioned range.
Johor Bahru's property market is bustling, with a variety of options for potential renters. The demand for properties has been robust, as evidenced by the 65.3% increase in transaction volume from 2022 to 2023. This growth reflects a thriving market where rental prices have found a stable range.
For those considering a move to Johor Bahru, understanding the rental landscape is crucial. The average rent for a three-bedroom condo remains consistent between RM1,800 and RM2,200, influenced by factors like location and size. This consistency offers potential renters a reliable expectation of costs.
Sources: FazWaz.my, The Edge Malaysia
13) Residential property prices in Johor Bahru range from RM400 to RM500 per square foot, depending on the area
The average price per square foot for residential properties in Johor Bahru is RM400-RM500, depending on the area.
In Johor Bahru, property prices have been climbing, especially near RTS stations, where they can soar to RM1,000 per square foot or more. This shows how much location matters, with spots closer to big infrastructure projects being pricier.
The property market here is buzzing, thanks to projects like the RTS Link and Forest City being named a Special Financial Zone. These developments have drawn in both local and foreign buyers, especially from Singapore, who are on the hunt for affordable housing options near the city-state.
There's a clear split in the market: high-end properties with too much supply and more budget-friendly homes for locals. High-rise buildings, like condos, are a hit with first-time buyers because they are more affordable.
Johor Bahru's property scene is seeing a 47% growth in the first half of 2024, largely driven by demand from Singaporeans. This surge is reshaping the market dynamics, making it a hot spot for investment.
Sources: Gplex, Malay Mail, Penang Institute, The Edge Malaysia, Star Property
14) The median price for a terraced house in Johor is around RM400,000, varying by location
The median price for a terraced house in Johor is about RM400,000, but it varies by location.
Take Avira Garden Terraces Medini in Johor Bahru, for example, where the median price jumps to RM1,017,000. This highlights how premium developments can significantly drive up property prices.
Johor's property market is on the rise, with a 4.7% increase in the first half of 2024. This growth is fueled by foreign buyers, especially from Singapore, and major projects like the Johor Baru–Singapore Rapid Transit System (RTS) Link.
In contrast, the average price for a terraced house across Malaysia was around MYR 287,018 as of September 2024. However, this national figure doesn't reflect Johor's unique market dynamics.
Prices in Johor can be quite variable, making it tough to nail down a single median price without more specific data. The influence of foreign investment and infrastructure development plays a big role in this variability.
So, while the median price might be RM400,000, areas with high demand and development can see much higher figures. Understanding these nuances is key for potential buyers.
Sources: Property Genie, Malay Mail, CEIC Data
We created this infographic to give you a simple idea of how much it costs to buy property in different parts of Malaysia. As you can see, it breaks down price ranges and property types for popular cities in the country. We hope this makes it easier to explore your options and understand the market.
15) Completed unsold residential units in Johor dropped by about 8% in 2024
The number of completed unsold residential units in Johor decreased by about 8% in 2024.
This drop is largely due to a reduction in unsold serviced apartment units, which fell from about 13,000 to around 11,000. Such a shift signals a healthier property market in the region.
Key initiatives like the Johor-Singapore Special Economic Zone and the easing of conditions for the Malaysia My Second Home programme have been instrumental in boosting property sales. These efforts have effectively tackled the property overhang issue.
Although the exact percentage decrease isn't explicitly mentioned, the steady improvement since early last year highlights a positive trend in the market.
For potential buyers, these changes mean a more dynamic and appealing property landscape in Johor. The ongoing developments and economic collaborations are making the area increasingly attractive for investment.
With these factors in play, Johor's property market is becoming a hotspot for both local and international buyers, offering promising opportunities. Investors are taking note of the region's potential for growth and stability.
Sources: The Star, Bernama, The Star
16) Luxury apartment supply in Johor rose by 10% in 2024, but demand stayed stable
The supply of luxury apartments in Johor saw a 10% increase in 2024, yet demand held steady.
This uptick in supply is largely thanks to ongoing infrastructure developments and a surge in foreign investor interest. The proposed Special Financial Zone (SFZ) and the Rapid Transit System (RTS) linking Johor to Singapore have been pivotal in boosting property transactions and drawing in foreign investors.
These projects have made Johor's luxury apartments more appealing, especially to foreign buyers. Singaporeans, in particular, have been a major force behind this trend, driven by favorable currency exchange rates and supportive policies that encourage investment in Johor's real estate.
Despite the increased supply, demand for these luxury apartments has remained stable. This is due to a consistent interest from both local and foreign buyers. Additionally, rental yields in Johor Bahru have been attractive, ranging from 4.97% to 8.47% in Q3 2024, which helps sustain demand.
Johor's property market is seeing a resurgence, with Singaporean demand playing a significant role. The infrastructure improvements and economic incentives are making it a hot spot for real estate investment.
Sources: Malay Mail, Global Property Guide, Met Property
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.
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