High-rise demand, new incentives, and infrastructure projects drive real estate expansion in Johor

Johor Bahru’s property market has maintained a steady upward trajectory in the third quarter of 2024, with both transaction volume and value showing an increase. Olive Tree Property Consultants (Johor) Sdn Bhd CEO Samuel Tan stated that the number of residential transactions rose by 8.7% from 17,000 units in the same quarter of 2023 to 18,477 units in 2024, while the total transaction value increased by 14.4% to reach MYR 10.26 billion (SGD 3.07 billion).

The shift toward high-rise residential developments is becoming more pronounced. As of the third quarter of 2024, landed properties comprised 64% of total housing supply, while high-rise units accounted for 36%. However, future supply trends indicate a strong preference for vertical living, with high-rise residences making up 68% of the incoming supply, compared to just 32% for landed homes. Tan noted that rising land and construction costs have made high-rise properties a more viable option, particularly for first-time buyers or those looking to stay near key commercial hubs.

In September 2024, the Malaysian government introduced a series of financial incentives under the Forest City Special Financial Zone (FC-SFZ), aimed at attracting high-net-worth individuals, fintech companies, and global business services. The incentives include a reduced corporate tax rate of between 0% and 5%, a 20-year tax exemption for family offices with minimum assets under management of MYR 30 million, and a special individual income tax rate of 15% for knowledge workers. These measures are expected to create an attractive business climate, although Tan emphasized that additional efforts in regulatory facilitation and infrastructure support would be necessary to establish Johor as a competitive financial hub.

Infrastructure development continues to be a key driver of the region’s property market. The proposed revival of the Kuala Lumpur-Singapore High-Speed Rail (HSR) is expected to enhance connectivity and increase demand for residential and commercial properties in areas like Forest City, Gerbang Nusajaya, and Iskandar Puteri. The ongoing construction of the West Coast Expressway, which links Banting in Selangor to Gelang Patah in Johor, is another major project that is expected to alleviate congestion on the North-South Expressway and improve land values along its route. Tan pointed out that such developments are crucial for attracting further investment and ensuring sustainable growth in Johor’s property market.

Johor’s transition to a Saturday-Sunday weekend, effective January 1, 2025, is another factor expected to contribute to economic activity in the region. Previously, the state government and civil service operated on a Friday-Saturday weekend, which often caused inefficiencies when coordinating with private sector and multinational corporations that follow the standard workweek. Tan described this shift as a pro-business move that would enhance productivity, streamline business operations, and improve work-life balance for employees. He also noted that sectors such as retail, food and beverage, and hospitality are expected to see a marginal boost in consumer activity as a result.

Despite strong transaction activity, property prices remained largely stable in the third quarter of 2024. Some segments saw slight increases, particularly in the semi-detached and serviced apartment categories. In Austin Heights, a 3,595 square foot semi-detached home rose in value from MYR 1.3 million (SGD 390,000) to MYR 1.4 million (SGD 420,000). A similar property in Senibong Cove saw its price increase by MYR 100,000 (SGD 30,000), reaching MYR 1.6 million (SGD 480,000). For serviced apartments, a 1,600 square foot unit at Straits View Condominium appreciated from MYR 450,000 (SGD 135,000) to MYR 480,000 (SGD 144,000). Rental prices followed a similar trend, with slight increases recorded across various residential categories.

Several new residential projects were launched in Johor Bahru during the third quarter of 2024. Sunway Iskandar Development Sdn Bhd introduced two new phases of landed developments, Aspira Hills and Sunway Maple Residence, with units fully booked shortly after launch. In the serviced apartment segment, Parkland By The River in Permas Jaya and Arden Serviced Residence in One Bukit Senyum were among the most notable launches. The demand for these new projects reflects a continued interest in both landed and high-rise developments, with buyers and investors showing confidence in Johor’s long-term growth potential.

Johor’s property market remains resilient, benefiting from infrastructure projects, financial incentives, and a shift toward urban living. The increasing focus on high-rise developments, alongside efforts to enhance business competitiveness through initiatives like the Forest City Special Financial Zone and the Kuala Lumpur-Singapore High-Speed Rail, are positioning Johor Bahru as a key real estate and investment destination. With continued government support and private sector participation, the city is expected to experience steady growth in both residential and commercial property sectors, attracting both local and foreign investors.

Sources: The Edge Malaysia, Bernama (2025)

Keywords: Johor Bahru Property, Market Stability, Investment Growth