The property sector in Johor demonstrated significant expansion during the initial six months of 2025, driven by large-scale infrastructure developments and enhanced economic cooperation with Singapore. This growth has elevated the state’s profile among both local and international investors, creating a dynamic real estate environment. Key initiatives such as the Johor-Singapore Special Economic Zone and new transit systems have played a central role in attracting capital and stimulating market activity.
Approved investments in Johor reached RM56 billion in the first half of the year, accounting for nearly 30 percent of Malaysia’s national total. According to Samuel Tan, Chief Executive Officer of Olive Tree Property Consultants Sdn Bhd, foreign and domestic investors contributed almost equally to this figure, signaling strong confidence in the state’s economic direction. Major transport projects including the Rapid Transit System Link and the Kuala Lumpur–Johor Baru Electric Train Service are reinforcing Johor’s appeal as a residential and commercial hub, with the RTS expected to begin operations in early 2027.
Tangible effects of this investment surge are already visible in the market. Since 2023, more than 3,000 overhang residential units have been absorbed, and properties located near transit hubs have seen price increases of at least 20 percent. Service apartment prices rose from RM800 to RM1,200 per square foot, while commercial land values climbed from RM700 to RM1,200 per square foot. Johor’s advantages include ample land availability, competitive pricing, and strategic connectivity to ports and logistics centers, supporting growth across multiple economic sectors.
Despite these positive indicators, industry experts advise caution. At a recent webinar titled “Johor Property Under the Lens: Growth Story or Bubble Risk?”, Tan highlighted persistent challenges such as rising construction costs and potential supply-demand mismatches. Although the number of unsold service apartments decreased to 11,810 units by the end of 2024, structural issues including speculative activity and insufficient regulation require attention to maintain stable growth.
Singaporean buyers continue to be influential in Johor’s property market, with many attracted by affordability and international schooling options. Lee Nai Jia, Head of Real Estate Intelligence at PropertyGuru, noted that this demand includes Malaysian holders of Singapore permanent residency. However, he pointed out that such demand can be sensitive to currency movements and geopolitical shifts. Both speakers emphasized that long-term sustainability will depend on transparent policies, affordability measures, and data-informed planning to prevent market imbalances and support continued development.