This article first appeared in City & Country, The Edge Malaysia Weekly on May 25, 2026 - May 31, 2026

Olive Tree Property Consultants (Johor) Sdn Bhd CEO Samuel Tan believes the Johor Bahru property market will face limited direct impact from the recent US-Iran tensions. He notes, however, that the conflict could indirectly affect the sector through higher global oil prices, inflationary pressures and the possibility of prolonged higher interest rates, which may increase construction costs and compress development margins.

Despite these concerns, Tan says the fundamentals of the city’s property market remain resilient, supported by strong domestic demand, Singapore-linked investments, and expanding activities in the industrial and data centre sectors.

“Johor’s property sector is likely to remain manageable and supported by catalysts such as the RTS (Rapid Transit System) and JS-SEZ (Johor-Singapore Special Economic Zone),” he says, in presenting The Edge Malaysia | Olive Tree Property Consultants Johor Bahru Housing Property Monitor 1Q2026.

Tan also highlights that the upcoming increase in Singapore’s Vehicle Entry Permit (VEP) fees is expected to further encourage Malaysian commuters to use the RTS once operations commence.

In February, the Singapore Land Transport Authority announced that VEP charges will be revised upwards from Jan 1, 2027. Foreign-registered cars and motorcycles entering Singapore currently pay S$35 and S$4 per day respectively, but the rates will increase to S$50 for cars and S$7 for motorcycles. The revised charges will also affect the transport of goods across the Causeway and Second Link, with monthly Goods Vehicle Permit (GVP) fees rising from S$40 to S$70.

Foreign-registered vehicles and motorcycles are entitled to 10 VEP waiver days per calendar year. Entry is also exempt from VEP charges for vehicles entering after 5pm and exiting before 2am the following day, with additional exemptions applied during the June and December school holidays.

“The transportation cost increase is substantial — 43% for cars and 75% for motorcycles. This could be part of a broader strategy to encourage Malaysian daily commuters to switch to the RTS instead of driving into Singapore, which would help ease congestion on the Causeway,” Tan says.

He adds that the policy could also spur demand for residential properties located near RTS stations, as commuters increasingly prioritise convenience and accessibility when travelling to Singapore.

Commenting on the latest developments surrounding the JS-SEZ, Tan says the unveiling of its strategic master plan has been delayed. Initially scheduled for March 2026, the announcement is now expected to take place in the second quarter of the year.

“In hindsight, this delay may actually be beneficial, as it provides the government with additional time to recalibrate its plans by taking into account the latest geopolitical tensions in the Middle East and their potential impact on the region,” he says.

Tan says the JS-SEZ shares similarities with the Hong Kong-Shenzhen model, which successfully supports cross-border economic integration.

“Singapore serves as the financial hub and headquarters for multinational corporations, while Johor offers land availability and labour at comparatively lower costs. This complementary twinning model will strengthen the positioning of Malaysia and Singapore as a joint regional investment destination,” he explains.

He adds that Johor is targeting RM140 billion worth of investments in 2026, after recording RM110 billion in approved investments last year — the highest among Malaysia’s 14 states.

“Such a formalisation of policies, coupled with smooth implementation, will attract investments, talent and visitors to the JS-SEZ. These measures will ultimately bode well for both the economy and the property market.”

The quarter saw three new launches in the landed residential segment, alongside a preview for a serviced apartment project.

Setia Indah Sdn Bhd, a subsidia­ry of S P Setia Bhd (KL:SPSETIA), launched Summer Grove in Taman Setia Tropika, comprising 203 double-storey terraced houses with a land area of 1,200 to 1,500 sq ft and built-up area of 1,706 to 1,894 sq ft. Selling prices start from about RM840,000 for the smallest unit and RM945,000 for the largest unit. Non-bumiputera units have been fully sold and the development is expected to be completed by March 2028.

Meanwhile, Kemajuan Tong Sor Sdn Bhd launched Phase 1B of Taman Bukit Amber, comprising 157 double-storey terraced houses and 80 double-storey semi-detached houses. The terraced houses feature a land area and built-up area starting from 1,600 and 2,300 sq ft respectively, while the semi-detached houses offer a land area and built-up area starting from 3,230 and 3,030 sq ft respectively. Selling prices start from RM828,000 for the terraced houses and RM1.5 million for the semidees. Non-bumiputera terraced houses have also been fully sold and the project is scheduled for completion in April 2028.

Elsewhere, Gunung Impian Development Sdn Bhd launched Phase 10D4 in Taman Impian Emas, which is part of the Iconia Garden Residence development. The phase comprises 113 double-storey terraced houses with a land area of 1,920 sq ft and built-up area of 2,542 sq ft. Units are priced about RM1 million and above, although the current sales rate is unavailable. The development is expected to be completed by March 2028.

Meanwhile, Astaka Padu held a preview for Amore Serviced Residence in March. The serviced apartment project comprises 600 units with built-up areas of 990 sq ft, 1,290 sq ft and 1,980 sq ft respectively. Selling prices start from RM650,000 (RM657 psf) for the 990 sq ft units, RM850,000 (RM659 psf) for the 1,290 sq ft units, and RM1.25 million (RM631 psf) for the 1,980 sq ft units. The project is expected to be completed in 2030.

During the quarter under review, house prices across selected residential schemes tracked by Olive Tree Property remained stable overall, with only marginal increases recorded in most landed residential developments. An exception was observed in Taman Molek, where the price of a double-storey terraced house rose 12.2% to RM1.1 million, from RM980,000.

A more moderate price growth was recorded in several other schemes involving double-storey terraced houses, including Horizon Hills, where prices rose from RM800,000 to RM820,000, and Bandar Seri Alam, which increased from RM650,000 to RM680,000. Similarly, prices in Taman Ponderosa edged up from RM800,000 to RM850,000. Meanwhile, the price of a 2-storey semi-dee in Austin Heights rose to RM1.7 million, from RM1.6 million; and a 2-storey cluster house in Taman Bukit Indah saw a slight increase to RM1.3 million, from RM1.28 million.

Within the high-rise residential segment, only Straits View Condominium and Twin Tower Residences recorded notable price movements. A 1,600 sq ft unit at Straits View Condominium was transacted at RM530,000, compared with RM500,000 previously; and an 872 sq ft unit at Twin Tower Residences increased to RM900,000, from RM840,000. These movements represent price increases of 6% and 7.1% respectively.

Rental activity across the selected schemes also remained broadly stable, with only minor adjustments observed in several locations, particularly in the double-storey terraced housing segment.

Rents of double-storey terraced houses in Taman Mount Austin increased from RM2,200 to RM2,400 per month, while Bandar Seri Alam recorded a slight decline from RM2,400 to RM2,300 per month. Meanwhile, rents in Taman Setia Eco Garden rose from RM2,000 to RM2,200 per month, while Taman Impian Emas increased modestly from RM2,200 to RM2,300 per month.

An exception was observed in Taman Ponderosa, where a 2-storey semidee recorded a stronger increase in rental rates, rising 12.5% to RM4,500 per month, from RM4,000.

In the high-rise segment, Straits View Condominium also registered a slight increase in rental rates, rising from RM2,100 to RM2,200 per month.

Overall, the observed movements indicate that the Johor Bahru residential market remains relatively stable, with only selective increases in both prices and rents rather than any broad-based upward trend.

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