PETALING JAYA: Keen interest from Singaporean and Chinese buyers is helping to spur demand for upmarket residential properties in Johor.
According to the latest figures from the National Property Information Centre (Napic), properties priced between RM700,000 and RM1mil have seen the biggest growth in Johor compared with other states.
Most buyers are local, but strong interest is also coming from across the Causeway and beyond, said Real Estate and Housing Developers' Association (Rehda) Johor chairman Lindy Tan.
“There is notable interest from foreign buyers, particularly from Singapore and China, who seek luxury and investment properties.
“Policies like the Malaysia My Second Home (MM2H) programme are also intended to attract foreign investors,” she said.
According to Napic’s figures, the number of transactions for residential properties priced between RM700,001 and RM800,000 in Johor grew by 44% in the third quarter (Q3) of this year compared with the same period last year.
The second biggest increase (43%) was for houses from RM900,001-RM1,000,000, followed by those in the RM800,001-RM900,000 category where sales went up by 38%.
“Johor’s property market, especially in the high-end segment, is likely to see price appreciation in the near term due to rising demand and strategic economic developments,” said Tan.
Key factors driving demand include the near completion of the Rapid Transit System (RTS) link, the recent announcement of the Special Financial Zone (SFZ), and the anticipated signing of the Johor-Singapore Special Economic Zone (JS-SEZ) in December.
“There is a notable surge, particularly in areas near RTS stations, as the RTS will improve cross-border travel to Singapore, enhancing Johor’s appeal for commuters.
“The SFZ in Iskandar Malaysia offers incentives to attract foreign investors and skilled workers, while the JS-SEZ promotes economic collaboration with Singapore, encouraging business and job creation,” said Tan.
However, she said Johor’s Rumah Mampu Milik Johor (RMMJ) scheme continues to support the B40 group by providing affordable housing with capped pricing through a cross-subsidy policy.
“Johor’s RMMJ scheme aims to support the B40 group by providing affordable housing with capped pricing through a cross-subsidy policy.
“For properties in this segment, pricing will be influenced mainly by rising compliance costs, inflation, and labour expenses, rather than demand alone.
“These homes are more sensitive to cost changes, as the profit margins are lower compared with higher-end properties,” she said, adding that developers would thus potentially adjust prices in response to these factors to maintain project feasibility.
Affordable house with a price range of RM300,000 and below remain in demand in Johor as the numbers dominated the total volume, accounting for 40% of total residential transactions.
Overall, the majority of the properties sold in Johor were in Johor Baru, which made up 61% of the total residential property transactions in Q3 2024.
The second most popular location was Kulai (1,044 houses sold), followed by Batu Pahat (966 houses sold) and Kluang (730 houses sold).
Meanwhile, Pontian saw the biggest spike in residential properties sold in Q3 2024, compared with the year prior, at 123%.
Two- to three-storey terrace houses were the most in demand in the state, recording 4,372 transactions, followed by single-storey terrace houses, at 2,290 transactions and vacant plots at 1,903.
The median price of a terrace house in Johor Baru is RM550,000, while a cluster house at the same location is priced at RM1,080,000.
Semi-detached houses in Kulai is the most expensive type of property located in the state, at a median price of RM1,470,000.
