Johor Property Market 2025: A Transformative Year Fueled by Investment and Infrastructure
After more than a decade of muted growth, the Johor property market in 2025 is finally experiencing a long-awaited revival. Backed by strong foreign investment, government initiatives, and major infrastructure developments, Johor is rapidly reemerging as one of Malaysia’s most promising real estate frontiers.
Industry players and analysts are optimistic that Johor’s transformation—particularly in Iskandar Malaysia and Johor Bahru—will lead to long-term growth across residential, commercial, and industrial segments.
Catalysts Driving the Johor Property Boom
According to Olive Tree Property Consultants CEO Samuel Tan, several initiatives are reshaping the region’s outlook. Chief among them are:
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Johor-Singapore Special Economic Zone (JS-SEZ)
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Special Financial Zone in Forest City
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Rapid Transit System (RTS) Link to Singapore
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Potential revival of the Kuala Lumpur-Singapore High-Speed Rail (HSR)
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Record-breaking foreign direct investment (FDI)
Johor recorded RM18 billion in FDI by Q3 2024, followed by a remarkable RM30.5 billion surge in Q4, positioning it among Malaysia’s top three FDI-receiving states. These investments were concentrated in the services sector (RM34B) and manufacturing (RM14.2B), driving demand for land, factory spaces, and housing.
Serviced Apartments and Landed Homes Gaining Momentum
The positive market sentiment is reflected in the uptick in property transactions and take-up rates:
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Serviced apartments near the CBD have recorded strong sales.
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Landed homes continue to attract consistent buyer demand, especially among young families and upgraders.
According to the Valuation and Property Services Department, Malaysia saw an 18% jump in transaction value in 2024, reaching RM232.3 billion—the highest in a decade.
However, Tan cautioned developers to monitor the growing supply of high-rise units to avoid overhang risks, especially in Johor Bahru’s CBD. The serviced apartment overhang in Johor currently stands at 10,624 units worth RM8.97 billion, the highest in Malaysia.
Key Infrastructure Boosts Property Appeal
One of the biggest drivers of renewed interest in Johor real estate is the upcoming RTS Link, slated for completion by January 2027. This cross-border transit system will directly connect Bukit Chagar in Johor Bahru to Woodlands North in Singapore, drastically improving accessibility and travel convenience.
To support the anticipated footfall:
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Sunway Group was awarded a RM1.5 billion contract to develop a park-and-ride facility with 850 car bays and over 1,000 motorcycle spaces near the RTS station.
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A nearby 4.2-acre plot was sold to Sunway for RM451 million, earmarked for a mixed-use development of serviced apartments, retail, and hotel components, with a gross development value (GDV) of RM2.6 billion.
These projects highlight the increased private sector confidence in Johor’s future and lay the groundwork for a thriving transit-oriented real estate market.
JS-SEZ and New Investment Zones
The JS-SEZ has officially expanded beyond Iskandar Malaysia’s five flagship zones to include:
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Sedenak Tech Park
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Forest City
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Pengerang Integrated Petroleum Complex
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Desaru
New priority sectors include:
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Aerospace
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Electrical & Electronics
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Medical devices
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Pharmaceuticals
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Chemicals
The SEZ offers special investment incentives, further boosting Johor’s appeal to multinational companies and supply chain partners looking to enter or expand within Southeast Asia.
Caution on Oversupply and Regulatory Response
Despite strong demand in key areas, oversupply remains a concern. Johor holds the second-highest residential overhang in Malaysia after Kuala Lumpur, with 2,964 unsold residential units worth RM2.89 billion.
As a preventive measure, the Johor Bahru City Council is considering a cap on small-office-home-office (SoHo) projects and small-sized serviced apartments to manage incoming supply.
Samuel Tan advises developers to conduct thorough feasibility studies before launching new high-rise projects, especially in saturated corridors.
Opportunities for Investors and SMEs
The ongoing transformation of Johor’s economic landscape presents compelling opportunities:
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Property investors can target growth corridors near the RTS, SEZ zones, and industrial hubs.
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SMEs in construction, logistics, retail, and halal food production can tap into new markets emerging around the JS-SEZ.
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Developers should explore integrated developments that serve both cross-border commuters and local residents.
With the global halal market projected to hit US$3 trillion by 2030, Johor is also positioning itself as a central player in this fast-growing sector.
Final Thoughts: A Market at a Turning Point
The Johor property market in 2025 is at a pivotal moment. Backed by infrastructure megaprojects, strong investor sentiment, and rising economic integration with Singapore, the state is poised for sustained growth.
For developers, real estate professionals, and investors, this is a key window of opportunity—a moment to align with the region’s next chapter before prices and demand surge even further.
