JS-SEZ, RTS Link To Boost Johor Property Market

JOHOR BAHRU, June 30 (Bernama) -- Johor’s property market is expected to enter a new phase of growth following the signing of the Johor-Singapore Special Economic Zone (JS-SEZ) agreement and the ongoing development of the Johor Bahru–Singapore Rapid Transit System (RTS) Link.

Real estate services company Nawawie Tie said in a statement today that residential property demand is expected to grow gradually, particularly in the rental market. 

"Residential property demand in Johor is led by locals, Malaysians working in Singapore, and Singaporeans, with the JS-SEZ poised to attract greater foreign interest

"While residential property demand is expected to grow progressively, owner occupiers are likely to remain cautious until there is greater clarity on supporting policies and infrastructure  rollouts.

"Landed properties continue to be the preferred choice for buyers, representing 65 per cent of total transactions in Johor and the Johor Bahru district accounted for 60 per cent of these transactions," according to the statement.

Meanwhile, the industrial property market in the Johor Bahru district is projected to thrive, driven by the expansion of the manufacturing sector and rising foreign direct investment (FDI). 

Johor is also emerging as a key regional hub for data centres, further boosting demand for industrial properties.

In first quarter of this year, a total of 353 housing units were transacted in Johor, with terraced units and semi-detached units being the most prominent. Johor Bahru remains the preferred location for industrial players, accounting for about 57 per cent of the state's transactions in the same year.

"Retail activity in Johor especially in Johor Bahru has shown promising growth following the reopening of international borders and the strengthening of the Singapore dollar. 

"These factors have spurred shopping activity among Singaporean visitors. The limited supply of high-quality malls is expected to support higher occupancy rates in established retail centres.

"In Johor, the average occupancy rate was 72.8 per cent in the fourth quarter of 2024 compared to 72.9 per cent in the first quarter of 2025. There were no new retail developments in the state during this time.

"In the Johor Bahru district, the average occupancy rate was maintained at 72.4 per cent in the first quarter of 2025," said the statement.

The statement also said the establishment of the JS-SEZ aims to attracts investments in high-value sectors including financial services, digital economy and healthcare.

The upcoming RTS Link, scheduled for completion by end-2026, is expected to enhance cross border connectivity and further strengthen Johor Bahru’s position as a regional office destination.

"Excluding government-owned office space, the occupancy rate in Johor Bahru district was approximately 57 per cent," said the statement.

-- BERNAMA