By: Yip Wai Fong

KUALA LUMPUR: Johor’s residential market in 2025 has outperformed the national trend including those of Selangor, Kuala Lumpur and Penang, with price growth in serviced apartments reaching 25.4%, according to real estate firm JLL Malaysia.

While the said growth is based on transactions of developments such as R&F Princess Cove, prices of apartments and condominiums also climbed upward by 7.5% while the two-storey terrace house recorded price growth of 11%.

However, JLL Malaysia also noted the possibility of market correction in Johor as transactions in both volume and level have dropped 17% and 6% respectively year-on-year in 2025. 

Despite the contraction, managing director Jamie Tan said there is still room for growth in Johor’s residential prices due to a low base, catalysts such as the Johor-Singapore Special Economic Zone (JS-SEZ) and the broad-based infrastructure upgrades across the state.

“As the Johor Bahru residential market started from a much lower base compared to cities like Selangor, Penang and Kuala Lumpur, we expect further room for price growth in 2026, particularly for locations with superior connectivity such as transit-oriented developments and those situated nearby commercial or industrial hubs,” Tan said at the JLL Malaysia Q1 2026 Press Conference recently.  

Another outperforming state was Penang, particularly in Georgetown. Apartment and condominium prices there have grown by 13%, led by high-end developments such as Queens Residence. 

Meanwhile, the serviced apartment prices remain unchanged since 2024 while two-storey terrace houses increase by 5.3%. In Klang Valley, stable price growth was observed across most property types, with certain regions seeing a slight drop.

Apartment and condominium prices grew by 5.6% on average, with those in the sub-district of Batu, where Mont Kiara and Desa Parkcity are located, dominating with an increase of more than 15%. 

Also, prices for serviced apartments grew by 2.8% on average and for two-storey terrace houses, by 3.1%. 

In Kuala Lumpur, demand for prime units in 2025 had been resilient, supported by foreign talent inflows, strong FDI momentum and healthy income growth. Accordingly, serviced apartments in established precincts in Kuala Lumpur also saw a price increase of 11.8%.

JLL Malaysia said investment sentiment for prime units remained stable and quality-driven. As capital value stabilised and yield improved modestly, no sign of distress selling was recorded, reflecting the continued role of prime residential assets as defensive income and capital preservation instruments for high net-worth individuals. 

Commenting on the outlook for 2026, the firm expects more market disruption stemming from geopolitical turmoil, prompting investment flight to safe haven assets such as gold, silver and real estate. However, the continuation of a low-interest environment may also encourage risk-on sentiment. 

Also present were chief growth officer Christophe Vicic, research and consultancy head Yulia Nikulicheva, leasing advisory head Quiny Lee, industrial and logistics team Derek Yap and capital markets – data centres team Sum Chun Kit. 

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