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Johor’s real estate market is showing promising signs of recovery and transformation, fuelled by growing investor confidence surrounding the Johor-Singapore Special Economic Zone (JS-SEZ) and the upcoming Johor Bahru–Singapore Rapid Transit System (RTS) Link. According to Nawawi Tie Leung’s Johor Brief Market Update (June 2025), residential, industrial, retail, and office segments across the state — particularly in Johor Bahru District — are benefiting from positive cross-border dynamics and rising foreign interest. Residential Sector: Overhang Shrinks as Confidence Returns Residential supply in Johor Bahru remains dominant, making up 59% of total state housing stock, with over 610,000 units recorded as of Q1 2025. Encouragingly, the high-rise overhang — once exacerbated by reduced foreign interest and a mismatch with local demand for landed properties — has declined 28.6% year-on-year, signalling renewed demand. Two notable high-rise launches made headlines in Q1 2025: Gen Rise, a 732-unit serviced apartment by Majestic Gen, replacing the former Hotel Sentral Johor Bahru. Arden, a premium development by Astaka Padu and Kimlun at One Bukit Senyum, with launch prices starting from RM1,350 psf. Landed homes still dominate demand, representing 65% of total transactions in the state, with the Johor Bahru District alone accounting for 60% of that volume. Industrial Sector: Data Centres Fuel Demand Johor’s industrial property market is thriving, especially in the Johor Bahru District, which houses 63% of total supply. With Malaysia fast emerging as a leading regional data centre hub, Johor has become a hotspot for industrial investment. Transaction activity rose in Q1 2025, with 353 units changing hands — terraced and semi-detached industrial units being the most in-demand. The incoming industrial supply in Johor saw a 47.2% quarterly increase, driven by infrastructure developments and foreign direct investment (FDI). Retail Sector: Reopening and Singaporean Spending Lift Outlook Retail occupancy in Johor has stabilised, with a statewide rate of 72.9% in Q1 2025. In Johor Bahru District, occupancy stands at 72.4%, supported by strong Singaporean footfall and currency advantages. No new major malls were opened in Q1, but Horizon Mall in Iskandar Puteri is expected to inject 150,000 sq ft of new retail space upon its debut. Recent transactions included Senibong Cove Mall (RM47 million) and Kluang Mall (RM158 million). Office Sector: JS-SEZ to Spark Commercial Expansion The office segment remains subdued, with private occupancy in Johor Bahru at just 56.6%, although this is expected to change. The JS-SEZ aims to attract high-value industries including financial services, digital economy, and healthcare, which could drive demand for modern office spaces. Recent completions include: Menara Bank Rakyat (400,000 sq ft) at Coronation Square UMCITY Corporate Tower (110,000 sq ft) in Medini, Iskandar Puteri With the RTS Link slated for completion by end-2026, Johor Bahru is positioning itself as a compelling commercial hub for regional expansion. “Johor’s property market is entering a new growth phase, anchored by transformational infrastructure and strategic cross-border initiatives,” said Nawawi Tie Leung, adding that the JS-SEZ and RTS Link are expected to lift long-term values across all segments. As foreign interest rebounds, especially from Singapore, and policy clarity improves, Johor is poised to become one of Malaysia’s most dynamic and strategically vital real estate markets. Source: businesstoday.com.my