The property sector in Johor has experienced a notable upswing during the initial six months of 2025, driven by extensive infrastructure development and enhanced economic ties with neighboring Singapore. Major initiatives such as the Johor-Singapore Special Economic Zone and new transit systems have collectively boosted investor confidence and stimulated market activity. This period has seen a significant influx of capital and a marked increase in property valuations across various segments.
Approved investments in Johor reached RM56 billion in the first half of the year, representing nearly 30 percent of Malaysia’s national total. According to Samuel Tan of Olive Tree Property Consultants, foreign and domestic investors contributed almost equally, signaling strong belief in the state’s economic trajectory. Key infrastructure projects, including the Rapid Transit System Link set to open in 2027 and the Electric Train Service beginning in late 2025, are viewed as transformative for connectivity and commercial appeal.
Market absorption has improved, with over 3,000 overhang units sold since 2023 and properties near transit hubs appreciating by at least 20 percent. Service apartment prices rose from RM800 to RM1,200 per square foot, while commercial land values increased from RM700 to RM1,200 per square foot. Despite these gains, experts warn that rising construction costs and potential supply-demand mismatches could challenge affordability and market stability if left unaddressed.
Lee Nai Jia of PropertyGuru highlighted the continued influence of Singaporean buyers, including retirees and families with children in international schools, many of whom are Malaysians with Singapore permanent residency. However, demand remains sensitive to currency movements and geopolitical developments. Both analysts agree that while Johor’s growth is supported by solid fundamentals, maintaining momentum will require stronger regulation, accurate data, and affordable housing measures to prevent speculative imbalances and ensure long-term sustainability.