The property sector in Johor has experienced a notable upswing during the first half of 2025, largely driven by major infrastructure developments and cross-border economic cooperation. This expansion is supported by projects such as the Johor-Singapore Special Economic Zone, the Rapid Transit System Link, and new electric train services, which together are enhancing the state’s appeal to investors. These initiatives have stimulated demand, attracted substantial capital, and contributed to rising property valuations across residential and commercial segments.
According to Samuel Tan, CEO of Olive Tree Property Consultants, Johor secured RM56 billion in approved investments in the first six months of the year, accounting for nearly 30% of Malaysia’s total. Foreign and domestic investment contributions were almost equal, signaling broad confidence in the state’s economic outlook. Tan highlighted the RTS Link, expected to begin operations in early 2027, and the upcoming Electric Train Service as transformative projects that are strengthening Johor’s role as a key commercial and residential hub.
Market data reveals a clear uptick in property absorption and price appreciation. Since 2023, more than 3,000 overhang units have been sold, and properties located near transport hubs have seen values increase by at least 20%. Service apartment prices rose from RM800 to RM1,200 per square foot, while commercial land values jumped from RM700 to RM1,200 per square foot. Johor’s competitive advantages include ample land, affordability, government backing, and strategic connectivity to ports and logistics centers, all contributing to its growing attractiveness.
Despite strong fundamentals, experts advise vigilance regarding affordability and supply-demand alignment. Rising costs of materials, labor, and regulatory compliance continue to strain buyers, and mismatches between supply and demand could re-emerge if not carefully managed. Although the number of unsold service apartments dropped to 11,810 by the end of 2024, and residential overhangs fell by 33% year-on-year, structural issues such as speculative activity and insufficient regulation remain concerns.
Lee Nai Jia of PropertyGuru noted that Singaporean buyers, including retirees and families with children in international schools, remain influential in Johor’s property landscape. Many of these buyers are Malaysians with Singapore permanent residency. However, demand remains sensitive to external factors like currency movements and geopolitical developments. Both Tan and Lee emphasized that sustaining Johor’s growth will require transparent governance, affordability-focused policies, and data-driven planning to avoid speculative imbalances and ensure long-term, stable progress.