Johor Bahru Residential Property Prices Rise in 2Q 2025
Samuel Chua
18th July 2025 - 2 min read
Residential property prices in Johor Bahru increased in the second quarter of 2025, following higher investor activity in the high-end property segment. This trend aligns with the launch of the Johor-Singapore Special Economic Zone (JS-SEZ), which has drawn interest from both domestic and regional buyers.
According to JLL Malaysia managing director Jamie Tan, average transaction prices for serviced apartments rose by 20.4% compared to the 2024 annual average. During the same period, double-storey terrace houses recorded an increase of approximately 8.6%.
Buyer Interest Supported by Connectivity and Projects
Tan said demand was supported by ongoing infrastructure developments in Johor Bahru and renewed regional attention. He highlighted the spillover effects from the JS-SEZ and greater connectivity between Johor and Singapore as key contributing factors.
One of the main transport projects is the Rapid Transit System (RTS) Link. The four-kilometre rail line will connect Johor Bahru and Singapore, with operations scheduled to begin in December 2026. It is designed to carry up to 10,000 passengers per hour in each direction, reducing travel time across the border to just six minutes.
Economic Shifts Influence Investment Behaviour
According to Tan, the launch of the JS-SEZ came during a period when business costs in Singapore were rising. At the same time, Malaysia was strengthening its position as an investment destination with a growing digital and services sector.
He noted that some companies are now establishing “twin” facilities across both sides of the border. This setup allows businesses to manage costs more efficiently while maintaining access to Singapore’s market and transport infrastructure.
JS-SEZ Structure and Scope
The Johor-Singapore Special Economic Zone was officially launched on 8 January 2025. It covers 3,288 square kilometres across nine flagship development areas in Iskandar Malaysia and Pengerang. The zone is nearly five times the size of Singapore and is designed to support a range of industries, including technology, services, logistics, and advanced manufacturing.
Business Incentives and Tax Support
To encourage investment in the JS-SEZ, the Malaysian government introduced a dedicated tax incentive package for qualifying businesses. The package includes a reduced corporate tax rate of 5% for up to 15 years and income tax exemptions for eligible knowledge workers in selected sectors such as aerospace, artificial intelligence, digital services, and medical devices.
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Samuel Chua
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