Johor Bahru

Overview

The second most populous state in Malaysia, Johor has remained attractive to investors. Once a place known for being only a border town, Johor Bahru (or JB), the capital city of the state of Johor is the southernmost city in Malaysia. As Malaysia’s second largest city proper with its relatively large land space, Johor Bahru is a rapidly growing city with more than 2.7 million inhabitants, including those in the suburbs.

Johor’s advantages lie in its proximity to Singapore, rich natural resources, being a self-sustaining state with various economic activities such as tourism, services, manufacturing and its real estate sector.

Established overseas development companies like China-based Greenland Group, Country Garden, R&F Properties Co Ltd and Singapore-based Hao Yuan Pte Ltd, have rolled out developments in Johor.

The five major highways linking the Johor Bahru Central Business District to the outlying suburbs are the Skudai Highway in the northwest, Tebrau Highway and the Johor Bahru Eastern Dispersal Link (EDL) Expressway in the northeast, Iskandar Coastal Highway in the west and the Johor Bahru East Coast Highway in the east.

Johor Bahru is an important industrial, commercial and tourism hub for southern Malaysia. It is conveniently connected to Singapore by the Johor-Singapore Causeway and the Malaysia-Singapore Second Link (Tuas Second Link). To get to Singapore, travellers have the options of bus or train rides. To get to the Senai International Airport, it is located to the northwest of the city and getting there is a 30-minute taxi ride from the Johor Bahru city centre.

 

Catalysts for demand

In Budget 2020, the proposal of a lower threshold from RM1 million to RM600,000 for foreign buyers of high-rise residential properties will encourage more demand.

The RM85 million allocation for the Causeway and Second Link would be a boon to Johor and Singapore considering the significant amount of daily traffic at the two checkpoints.

“The reduced congestion time will encourage investors to invest in Johor, not only in the property sector but other industries as well such as manufacturing and F&B services. Shopping malls in Johor Bahru will definitely feel the positive effects of this move,” says KGV International Property Consultants Sdn Bhd executive director Samuel Tan.

He adds that the property market in the Iskandar Puteri region will observe an increase in demand as people will be able to travel and commute more easily. “The industrial sector will also see renewed interest,” Tan adds.

Meanwhile, Budget 2020 also saw the government proposing to allocate some RM25 million to promote medical tourism. Tan observes an increase in demand for this sector, especially from neighbouring Singapore and Indonesia. “Some hospitals [in Johor] allow Singaporeans to use their Central Provident Fund (CPF) for their medical expenses in the state,” says Tan. Among the numerous hospitals in JB include KPJ Johor Specialist Hospital, Gleneagles Medini Hospital, Columbia Asia Hospital - Iskandar Puteri and more.

In mid-2019, Rahim & Co (Johor) International Sdn Bhd director Loo Kung Hoe said although the market is not as active as it was during the boom in 2013, local Johoreans are still keen to own homes, hence some projects have attracted purchasers with some even seeing overnight queues.

“Landed homes remain the preferred choice for Johoreans. They will buy if the property meets their budget, is in a location of choice and comes with facilities or lifestyle features,” he added. For instance, S P Setia Bhd’s Elata Vita @ Setia Tropika launch in June 2017 saw buyers queuing up a day before the launch for the double-storey terraced houses which were selling from RM588,588. According to a news report, the 138-unit project was 90% taken up on the launch day itself.

In February 2018, Serimbun, a landed residential development by UEM Sunrise Bhd in Iskandar Puteri was launched and 74% of its units were taken up within a month. Serimbun features 215 units of double-storey terraced homes with built-ups ranging between 1,993 sq ft and 2,117 sq ft with prices from RM630,000. The project had received 1,500 registrations of interest before the launch.

 

Amenities and Facilities

There is no shortage of shopping malls in Johor Bahru. The notable and well-frequented ones include AEON Tebrau City, Sutera Mall, City Square Mall and Komtar JBCC. Johor Bahru city also offers foodies a gastronomical experience with a wide variety of food establishments which offer all manner of dining options.

Most recently, the city saw the establishment of new malls such as Midvalley Southkey, Paradigm Mall JB, Toppen Shopping Centre (by Ikea Southeast Asia) and Sunway Big Box Mall.

Meanwhile, neighbourhoods/commerical hubs Taman Mount Austin with its many hipster cafes and bubble teas stores, Eco Botanic (Taman Eko Botani) and Taman Sutera Utama are highly popular with locals and tourists alike.

Although these megaprojects are postponed, the Kuala Lumpur–Singapore High Speed Rail (HSR) project and the Johor Bahru – Singapore Rapid Transit System (RTS) link are expected to contribute significantly to the growth of properties in JB once they begin operations.

With Johor Bahru’s strategic location and constant growth, it comes as no surprise that there are a multitude of both residential and commercial properties up for sale or available for rent.