While the Johor property market is experiencing a growth surge, Tan said the authorities and developers should make sure no property glut happens.

By Yip Wai Fong

KUALA LUMPUR: The Johor property market is experiencing a significant uptrend in the first half of 2025 (1H 2025), with a double-digit growth in the average transacted price for serviced apartments in the Johor Bahru City sub district, driven largely by high-end properties.

“Many high-end properties are being launched and being priced at RM1,000 to RM1,500 per square foot (psf), especially in the Bukit Chagar area and the checkpoints surrounding area,” said JLL Malaysia managing director Jamie Tan at a press conference.

Tan added that the state’s investment in infrastructure and development, such as the Johor-Singapore Special Economic Zone (JS-SEZ), has spurred investment confidence and contributed to the uptrend.

“Traditionally, the average price in Johor appreciates in a single digit annually, matching the inflation rate. There is a very strong sentiment in Johor now that the market will thrive, due to the growth of investment in infrastructure as well as the JS-SEZ. Because of that, there is a 20% increase in average transacted prices, mostly driven by higher-end property,” Tan said. 

As for apartments and condominiums, the average transacted price in the Johor Bahru City sub district also recorded a strong performance in recent years, with a 4.3% increment for 2024 and a 2.9% increase for 1H 2025.

Double-storey terrace houses also experienced consistent and significant growth of 7.9% in 2024 and 8.6% in H1 2025, with the average transacted price at RM382 psf, compared to Klang Valley’s average at RM492 psf during the same period. 

Tan, however, cautioned authorities and developers to be careful so as not to create a property bubble through overbuilding and oversupply. 

“I think it is very important for regulators, the planning authority, to enforce certain restrictions – what you can and cannot build, certain height and plot ratio restrictions, to ensure there will be no property glut and oversupply situation. The responsibility should also go down to the developers, to always match supply with genuine demand and not just jump onto the bandwagon to achieve a certain quantity or profit margin,” he said. 

The Klang Valley scenario

Meanwhile, serviced apartments in Klang Valley experienced a lower growth rate in average transacted price rate of 1.8% in H1 2025. 

However, KL city remains the top performer, recording average prices of RM684 psf in H1 2025 while the Batu sub district (which includes Mont Kiara and Desa Parkcity) is in second position, recording average prices of about RM670 psf. 

Apartment and condominium in Klang Valley recorded a 2.3% overall appreciation, with the Batu sub district continuing to be the top-performing area which recorded an average of RM561 psf in 1H 2025 or about a 1.5% increment from 2024. KL city was in second position with a recorded average price of RM483 psf.

Double-storey terrace houses, the most common type of landed residential property, recorded a price increase of 1.4% only.

“These figures indicate that prices are holding steady, with a moderate upward trend reflecting ongoing demand in key urban areas despite concerns of oversupply,” said Tan.

“We will continue to see increasing market activity in the residential market due to the recent cut of 25 basis points to the Overnight Policy Rate (OPR) and the various incentive packages offered by developers for their residential project launches,” he added.

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