Located at the southern-most part of Malaysia and just a stone-throw’s away from Singapore, Johor is considered a prime location for both developers and investors.
To add to its appeal, Johor is awarded with the title Southern Economic Corridor in 2006; boosting its economy to greater heights.
As reported by Star Property, The Malaysian Institute of Estate Agents (MIEA) Johor branch chairman, Liew Toh Sen, believes that the Johor property market has been influenced heavily by the involvement of foreign developers that does not only changed the landscape, but also the behaviour of local developers and native Johoreans. The locals are also opening up to high-rise residential properties other than the conventional landed houses.
Buyers from outside of Malaysia such as Singaporeans and mainland Chinese are also coming into Johor’s property market, which makes them the top investors in the state. One of the most impactful development in Johor would be Forest City, a network of man-made islands comprising of exciting and futuristic mixed development.
Liew believes that the Johor property market is in vibrant condition due to the influx of foreign buyers and investors. With new and exciting developments on their way, Johor’s property market will definitely be on the spotlight for the coming years.
Property Advisor’s Insights
Difficult to imagine the market trend of residential properties in Johor? Property Advisor unpacks the state’s market trend for you and we found out that high-rise residential units do perform rather well in the state especially towards the end of 2016.
Transaction volume had a steady increase and the market eventually cooled down slowly towards the end of 2017 Q4. It was claimed that high-rise condominiums are getting more popular compared to landed residential properties. In the graph below, we unpacked the market trend of landed houses which takes into account terraced houses, semi-detached houses and bungalows.
Generally, states other than Kuala Lumpur and Selangor do not have as many high-rise residential units. Landed homes are in abundance and these are the preferred property type among buyers in these states. Johor is one of them and as illustrated above, the transaction volume by the thousands proves the point.
The median rate per square feet experienced a hike in 2017. Comparison between the same quarter between both years shows an increase of up to 8% (2016 Q4 compared to 2017 Q4). The sudden hike of median rate psf. from 2017 Q1 to Q2 has a 6% increase. This might have discouraged buyers and investors, causing the market to cool down more drastically towards the end of the year. Will landed homes continue to lose its appeal if the market rate continues to increase?
Transaction Volumes – combined
As buyers are more open towards the idea of high-rise properties and foreign investors such as Singaporeans find it favourable to invest or even buy a second home in Johor, the state is seen to be the next rising metropolitan in the country.
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