This article first appeared in City & Country, The Edge Malaysia Weekly on October 20, 2025 - October 26, 2025

Johor is seeing a surge in serviced apartment launches as developers capitalise on proximity to rapid transit system (RTS) stations, says Olive Tree Property Consultants (Johor) Sdn Bhd CEO Samuel Tan, in presenting The Edge Malaysia | Olive Tree Property Consultants Johor Bahru Housing Property Monitor 2Q2025. He notes that properties near such stations command a premium because of their convenience and reduced reliance on private vehicles.

“The Johor Bahru serviced apartment sector is at a pivoting point due to improved connectivity, buyers’ affordability and increased interest. The main target market remains those working in Singapore and investors. Another target group would be first-time homebuyers, who, with their budget constraints, are unable to afford landed property. Their increasing acceptance of gated-and-guarded developments and high-rise living is another factor contributing to the demand.”

According to estimates, there have been at least 20 new launches within a 5km radius of the RTS terminal in the past year. These projects will yield about 30,000 units in the next two or three years. They include Arden Serviced Residence by Astaka Holdings Ltd; Tropicana Lido Waterfront Boulevard by Tropicana Corp Bhd (KL:TROP); Oasis Residences by CTC Development Malaysia Sdn Bhd; Senyum Residences by Crescendo Landmark Sdn Bhd; the third phase of R&F Princess Cove by R&F Group; Summer Suites by Connoisseur Properties Sdn Bhd; Gen Rise and Gen Sphere by Majestic Gen Sdn Bhd; Brixton @ Causewayz Square and The Asteriaz @ Kebun Teh by Exsim Development Sdn Bhd; The Address Pelangi JB by Maxim Pelangi Sdn Bhd; One Sentosa @ Plaza Sentosa by TSLAW Group; Johor Bahru Paragon Gateway by Joland Group; Sunway Majestic — a joint venture by Sunway Property and Majestic Gen; and Calia Residences @ Danga Bay by Paragon Globe Bhd (KL:PGLOBE).

Tan says more compact-size units are entering the market. “Most of the incoming supply comprises small units ranging from about 500 sq ft to less than 1,000 sq ft. Prices largely range from RM850 to RM1,300 psf despite claims of higher gross prices of at least RM1,500 psf.”

Although response to these projects has been optimistic, Tan says there is risk of an overhang. “The biggest risk is the repeat of the previous cycle, which ended in an excessive overhang, leaving many units unsold and unoccupied once the hype faded.”

Tan adds that land prices in Johor Bahru have been rising significantly, as evidenced in recent land transactions. For example, a 4.84-acre tract in Taman Suria was put up for auction with a reserve price of RM54 million and eventually sold at RM136.8 million, or about RM650 psf; a 1.73-acre parcel fronting Jalan Tebrau was transacted at RM61.5 million, or about RM816 psf; and nine plots of contiguous land measuring 1.64 acres, near the upcoming Hotel Sheraton in Bukit Senyum, Johor Bahru, was transacted at roughly RM75 million, or RM1,050 psf.

“These record-breaking prices reflect a bullish sentiment among developers, particularly for serviced apartments near the RTS zone. This optimism may be driven by the strong sales performance of recent project launches.

“However, it would be prudent for developers to exercise greater caution. Conducting thorough market research is essential to avoid being swayed by the ‘fear of missing out’ mentality,” says Tan.

Johor secured RM30.1 billion in foreign direct investment (FDI) in 1Q2025.

“It took the state nine months to achieve this figure last year, and it attained this amount in just three months this year,” says Tan, adding that Johor is optimistic about achieving nearly RM60 billion in FDI in 2Q2025 and RM100 billion by the end of this year, supported by government initiatives.

With the Johor-Singapore Special Economic Zone (JS-SEZ) and Forest City Special Financial Zone initiatives, FDI is expected to reach new highs this year, he says. “These investments will boost the economy and indirectly benefit the property market through increased employment and higher salaries, owing to higher-value-added job creation.”

To promote skills development among local talent, the state government established the Johor Talent Development Council last year to train, reskill and prepare the workforce for the state’s growing job opportunities.

“It has also proposed a minimum wage of RM3,500 for diploma holders and RM4,000 for degree holders. Several companies have adopted this initiative,” says Tan.

He believes the Gemas-Johor Bahru Electrified Double Track Project, when completed, will be a catalyst for the state. It will not only provide alternative travel options to the state capital but also accessibility to smaller towns along its route.

“This alternate mode of transport will attract many because of its convenience, comfort, speed and cheaper fares compared with flights. As it will pass smaller towns such as Kluang and Segamat, it will spur economic growth in these places. Johor Menteri Besar Datuk Onn Hafiz Ghazi [said in July this year] that the JS-SEZ will spur the emergence of more satellite towns to complement Johor Bahru,” Tan shares.

Meanwhile, Keretapi Tanah Melayu Bhd and Railway Assets Corp will introduce passenger services on the Pasir Gudang-Kempas Baru line by next year and are estimated to be operational in six to 12 months from May 2025. At least three stations will be built along the route to serve commuters.

“The train service, which previously catered exclusively for cargo trains, is being reactivated to ease mounting congestion between Pasir Gudang and Johor Bahru. The government is improving Johor connectivity by upgrading the existing infrastructure. We foresee the government spearheading more infrastructure projects in the JS-SEZ in anticipation of increased traffic in the future,” says Tan.

In 2024, Johor’s GDP reached RM158 billion, solidifying its role as a key contributor to the nation’s economy, alongside Selangor, Kuala Lumpur and Sarawak, says Tan. He notes that the performance is supported by balanced growth across sectors such as construction, service, manufacturing and agriculture.

“The construction sector, which rose 42.7% (2023: 12.7%) in value, is driven by the development of large-scale data centres and advanced digital infrastructure such as cooling systems, high-capacity fibre-optics and energy facilities. The services sector, on the other hand, grew 6%, thanks to a surge in the financial, insurance, real estate and business services subsectors. The manufacturing sector recorded positive growth of 4.2%, particularly in basic metals, non-metallic minerals, and electrical and electronic products. The agriculture sector also recorded positive growth of 4.2%, making Johor the highest contributor to the national agricultural GDP by 17.3%. This is driven by an increase in palm oil production as well as food and vegetable oil processing.”

During the quarter under review, prices in the Johor Bahru residential market either increased or remained unchanged. Tan says landed property prices rose between 3.9% and 20%, while most rental rates remained stable, with some increasing by 2.9% to 17.6%.

Several 2-storey terraced houses in Taman Mount Austin, Taman Molek, Taman Ponderosa and Taman Impian Emas saw a price increase.

For instance, a 1,400 sq ft unit in Taman Mount Austin was sold for RM800,000 in 2Q2025 (1Q2025: RM770,000); the selling price of several units in Taman Molek rose to RM950,000 (1Q2025: RM900,000); a 1,916 sq ft unit in Taman Ponderosa was sold for RM720,000 (1Q2025: RM680,000); and a 1,765 sq ft unit in Taman Impian Emas was sold for RM800,000 (1Q2025: RM750,000).

Among the schemes monitored by Olive Tree in 2Q2025, more 2-storey semi-detached houses saw price increases compared to the first quarter.

For instance, the price of a 3,400 sq ft unit in Taman Bukit Indah rose to RM1.4 million (1Q2025: RM1.3 million), while that of a 3,003 sq ft unit in Horizon Hills increased to RM1.3 million (1Q2025: RM1.2 million). In Austin Heights, the price of a 3,595 sq ft unit climbed to RM1.6 million (1Q2025: RM1.5 million).

The price of a 3,200 sq ft semidee in Taman Molek rose to RM1.3 million (1Q2025: RM1.2 million), and that of a 2,380 sq ft unit in Bandar Seri Alam increased to RM900,000 (1Q2025: RM850,000).

Meanwhile, a 3,200 sq ft unit in Taman Setia Eco Garden saw its price rise to RM1.1 million (1Q2025: RM1 million), and that of a similar-sized unit in Taman Impian Emas reached RM1.2 million (1Q2025: RM1.1 million).

The second quarter also saw more price appreciation for cluster homes. According to the data, a 2,240 sq ft unit in Taman Bukit Indah was sold for RM1.2 million (1Q2025: RM1 million); a 2,240 sq ft Horizon Hills unit was transacted at RM1.2 million (1Q2025: RM1 million); and a 2,240 sq ft unit in Austin Heights changed hands for RM1.1 million (1Q2025: RM1,000).

As for the rental market, three housing schemes — Taman Impian Emas, Horizon Hills and Taman Bukit Indah — showed an increase in rental rates. In Taman Impian Emas, a 1,765 sq ft, 2-storey terraced house saw a quarter-on-quarter (q-o-q) rental increase to RM2,000 per month, from RM1,800; and a 2-storey, 3,200 sq ft semidee in the same development saw its rental rate rise to RM2,800 per month, from RM2,500. A 2-storey, 3,003 sq ft semidee in Horizon Hills saw a q-o-q increase in rent to RM3,800 per month, from RM3,600; and a 2,240 sq ft cluster house in Taman Bukit Indah also experienced a rental increment of RM200 to RM3,200.

For high-rises, the rental rate for a 750 sq ft Sky Executive unit increased to RM1,800 from RM1,700 per month.

According to Olive Tree’s data, nine property launches were held during the quarter under review, seven of which were landed properties and two were serviced apartments.

Haverse Quest Sdn Bhd launched the freehold Regent’s Park in Ledang Heights in April 2025. The development comprises 47 bungalow plots, with land sizes ranging from 12,000 to 80,000 sq ft and prices between RM3 million and RM17.6 million. According to the developer, 90% of the plots have been sold.

In April, Keck Seng Group launched Alysia (Phase 4F2) in Tanjung Puteri Resort, Plentong, comprising 53 two-storey terraced houses, with a built-up area from 1,861 sq ft and selling prices from RM554,000.

Also in April, S P Setia Bhd (KL:SPSETIA) launched Sky Valley in Taman Setia Tropika, comprising a total of 600 units, with prices starting from RM319,000 (RM798 psf) for a 400 sq ft unit. In May, the developer launched Sky Curve in Taman Perling, with a total of 299 units and prices starting from RM378,000 (RM653 psf) for a 579 sq ft unit. Tan says 70% of the units have been sold.

In May, Genting Property Sdn Bhd launched U.Reka, a landed residential development comprising 2-storey terraced, cluster and semidee houses that is part of the Genting Indahpura township. The project comprises 269 units priced from RM583,000 to RM1.79 million, and has been fully sold.

Also in May, Gunung Impian Development Sdn Bhd launched Honeydale Residence in Taman Impian Emas. The project has a total of 120 two-storey cluster houses priced from RM1.24 million and has achieved 70% in sales.

In June, S P Setia launched Maple 3 at Setia Eco Garden. The 2-storey terraced development comprises 111 units with a built-up area from 1,588 sq ft and priced from RM735,000. Half of the units have been sold.

Also in June, Connoisseur Properties Sdn Bhd launched Summer Suites on Jalan Bukit Meldrum. The development offers 748 units with built-ups from 599 to 912 sq ft, priced from RM590,000. About 90% of the units have been sold.

Majestic Gen launched Gen Sphere on Jalan Lepas in June, offering 996 units with built-ups ranging from 459 to 700 sq ft. Prices started from RM609,000 (RM1,327 psf) for a 459 sq ft unit. Tan says the project is fully sold.

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