Johor Tops Residential Launches in 1Q2025 Amid Market Realignment
The first quarter of 2025 highlights Johor’s continued dominance in Malaysia’s residential property market, with 3,194 new units launched, outpacing Selangor (2,129 units) and Negeri Sembilan (1,838 units), according to the National Property Information Centre (Napic).
Despite a general dip in transaction volume and value from the previous quarter, analysts view the slight slowdown as part of a healthy market recalibration following aggressive activity in late 2024. For developers, investors, and homebuyers, this data provides valuable insight into where the market is headed—and how to respond strategically.
Johor’s Residential Pipeline Remains Strong
With over 12,498 residential units launched nationwide in 1Q2025, Johor’s contribution represents over a quarter of total new supply. This is not surprising given the state’s:
-
Growing demand in economic corridors like Iskandar Malaysia
-
Ongoing industrial and infrastructure development (e.g., Senai Airport City, Rapid Transit System Link)
-
Competitive land pricing and proximity to Singapore
The majority of new launches continue to favor landed properties, which make up 78.2% (9,102 units) of the national total. This reflects ongoing preference for family-centric homes, especially in suburban and semi-urban markets like Johor Bahru, Kulai, and Tebrau.
Johor Bahru Leads in Total Units Sold Since 2012
Napic’s analysis of first-transfer data (2012–2025) shows Johor Bahru (JB) leading the nation with 73,935 residential units sold, far surpassing Petaling (42,227 units), underscoring its position as a resilient market despite cyclical shifts.
This strong sales performance is driven by:
-
Local demand from M40 households
-
Cross-border interest from Singaporean buyers
-
Emergence of mixed-use townships and lifestyle-driven projects
Slight Dip in Market Seen as Normalisation, Not Weakness
While 1Q2025 saw 97,772 property transactions worth RM51.4 billion, this reflects a 6.2% and 8.9% decline in volume and value compared to 4Q2024. However, Napic clarifies that this is largely due to:
-
Post-peak slowdown following a record-breaking 4Q2024
-
Inflationary pressures and fuel price volatility
-
Subsidy rationalisation and tighter household spending
Residential property still accounted for over 60% of total transaction volume, with 59,306 units worth RM24.51 billion. While this represents a y-o-y dip, the fundamentals remain stable.
Overhang Units Remain a Concern, Especially in the Mid-Range Market
A key point raised by UOB Malaysia is the rising overhang in the RM500,001–RM700,000 price bracket, with 32% (2,903 units) of unsold units concentrated in Johor, Selangor, KL FT, and Penang.
This signals a mismatch between supply and current buyer capacity, especially in markets where:
-
Financing access is limited
-
Buyers are prioritising affordability and accessibility
-
High-end units exceed realistic income-to-loan ratios
Developers are now urged to recalibrate launches and conduct granular market research to align offerings with buyer profiles.
The Rise of the First-Time Buyer Market
The current environment is clearly shifting toward first-time homebuyers, who are:
-
More cautious about financing obligations
-
Prone to choosing rent over ownership if upfront costs are unclear
-
Likely to struggle with loans below RM250,000—where non-performing loan (NPL) rates are highest at 1.76%
Banks and developers are advised to educate buyers on total ownership costs, including legal fees, stamp duty, and renovation expenses. Transparent pricing and buyer literacy may be key to reviving slower segments.
Using Data to Match Demand: EdgeProp’s EPIQ Insights
EdgeProp Malaysia’s managing director Alvin Ong introduced a data-first approach to property development, emphasizing that success lies not just in “what buyers want,” but “who the buyers are and what they care about.”
EdgeProp’s EPIQ platform helps developers:
-
Understand travel patterns and lifestyle clusters
-
Tailor placemaking initiatives such as parks, retail, or wellness centers
-
Measure post-completion footfall and tenant ROI
This kind of intelligence helps elevate value beyond pricing—an essential competitive edge in oversupplied or saturated zones.
Strategies for Developers and Investors Moving Forward
Given current market conditions, several actionable takeaways emerge:
✅ Prioritize Affordability and Livability
Target RM250,000–RM500,000 price brackets with efficient layouts, financing incentives, and minimal hidden costs.
✅ Rethink Product Positioning
Combine placemaking with digital infrastructure (e.g., high-speed internet, community apps) to appeal to lifestyle-oriented millennials and hybrid workers.
✅ Track Overhang Hotspots
Avoid launching in areas with persistent overhang unless there’s proven demand, e.g., near universities, hospitals, or tech parks.
✅ Leverage Data-Driven Design
Use location and community insights to optimize floorplans, amenities, and marketing messages for specific demographics.
Conclusion: Johor’s Leadership Highlights Long-Term Potential
Johor continues to lead Malaysia’s residential market by volume, proving its underlying economic resilience and real estate attractiveness. While 1Q2025 showed a dip in sales and launches, this correction is seen as market normalisation, not decline.
For real estate professionals, the key lies in reading the signals behind the numbers—understanding shifting buyer behavior, adapting product offerings, and embracing data-led decision-making.
