The property sector in Johor experienced a significant expansion during the initial six months of 2025, driven by large-scale infrastructure developments and enhanced economic cooperation with Singapore. This growth reflects increased investor confidence and a notable rise in property transactions and values across various segments of the market. Key initiatives such as the Johor-Singapore Special Economic Zone and new transit systems have been central to this upward trend.
Approved investments in Johor reached RM56 billion in the first half of the year, accounting for nearly 30 percent of Malaysia’s total approved investments of RM190.3 billion. Samuel Tan, Chief Executive Officer of Olive Tree Property Consultants Sdn Bhd, highlighted that foreign and domestic investors contributed almost equally, signaling strong belief in the state’s economic future. He identified the Rapid Transit System Link and the Electric Train Service as transformative projects that are strengthening Johor’s appeal as a residential and commercial destination.
The tangible effects of these developments are already being observed in the market. Since 2023, more than 3,000 overhang units have been sold, and properties located near transportation hubs have seen values increase by at least 20 percent. Service apartment prices have risen from RM800 to RM1,200 per square foot, while commercial land values jumped from RM700 to RM1,200 per square foot. Johor’s advantages include ample land, competitive pricing, and strategic connectivity to ports, airports, and logistics centers.
Despite these positive indicators, experts advise caution regarding potential market imbalances. Samuel Tan pointed out that affordability is under pressure due to rising construction and compliance costs, and supply-demand mismatches could re-emerge if not carefully managed. Although the number of unsold service apartments decreased to 11,810 units by the end of 2024, and residential overhangs fell by 33 percent year-on-year, structural issues such as inexperienced developers and speculative activity remain concerns.
Lee Nai Jia, Head of Real Estate Intelligence at PropertyGuru, noted that Singaporean buyers, including retirees and families with children in international schools, continue to be important participants in Johor’s property market. However, he warned that this demand can be sensitive to factors like currency exchange rates and geopolitical developments. Both experts agree that maintaining market stability will require transparent regulation, data-informed planning, and a focus on affordable housing to ensure that current growth leads to sustainable long-term benefits.