Johor home sales up, but experts advise caution amid ample supply

Those planning to buy a home across the Causeway would have seen countless advertisements of luxe condominiums and lush landed houses being launched in Johor, with developers touting them as sound investments.

- Harith Mustaffa

Indeed, the number of overhang or unsold property units in Malaysia's southernmost state declined in the third quarter of 2024, boosted by buying interest amid rapid economic developments in the region.

"After nearly a decade of downturn, the market has finally recovered," said Mr Samuel Tan, founder and chief executive of Olive Tree Property, a real-estate consultancy firm based in state capital Johor Bahru.

The latest figures from Malaysia's National Property Information Centre (Napic) for the third quarter of 2024 show Johor with a residential property overhang of 3,030 units, down 33 per cent from 4,500 units in the same quarter in the previous year.

High-rise developments such as serviced apartments, which are listed separately as commercial properties by Napic, also showed improved sales from a high of more than 16,000 unsold units out of more than 61,000 units launched in the four quarters of 2021 during the pandemic. This has come down to 11,810 unsold units out of more than 55,000 units launched as at the third quarter of 2024.

Property agents say that for Malaysians or foreigners working and living in neighbouring Singapore, a huge draw is Johor's lower cost of living with its more affordable homes, especially given the favourable Singapore dollar-ringgit exchange rate. In addition, there is the upcoming Rapid Transit System (RTS) Link project that will connect Singapore and Johor Bahru, which is expected to begin operations in December 2026.

"The appeal is clear. Property prices in Johor are much lower than in Singapore, offering the opportunity to buy larger or landed homes that would be unaffordable back home," said Ms Chua Shir Yee, head of international sales at real-estate firm PropNex.

"With the improvement in cross-border connectivity, like the upcoming RTS Link, Johor has become a popular choice for those seeking a second home or weekend getaway," she told The Straits Times.