Johor Property Market Bifurcates: Strong Demand and Price Hikes for RTS Link Properties
Despite moderating overall transaction volumes, Johor Bahru's property market is seeing significantly higher average price points, driven by concentrated demand for properties near the RTS Link.
What happened
The Johor property market is witnessing a “sharp bifurcation,” with fewer transactions but deals closing at higher prices, as buyers and banks become more selective and demand shifts towards transit-linked, well-located homes. This was reported by Olive Tree Property Consultants Sdn Bhd CEO Samuel Tan, presenting The Edge Malaysia | Olive Tree Property Consultants Johor Bahru Housing Property Monitor 2Q2026. While total deal volumes may be moderating, closures are happening at significantly higher average price points. This divergence is largely driven by highly concentrated demand for properties within walking distance of the Rapid Transit System (RTS) Link, which are experiencing intense demand and rapid capital appreciation, absorbing high-value inventory and propping up total transaction values. Similarly, landed residential properties are transacting at a premium due to elevated construction costs and sustained demand for space.
Tan noted that the momentum from the first quarter continued into the second. According to the National Property Information Centre (Napic), Johor recorded robust activity in 1Q2026, with 13598 transactions worth nearly RM11.3 billion, even as nationwide volumes slipped 8% year-on-year, though values held firm. This contrast suggests buyers are taking a measured approach. The bulk of unsold completed units are concentrated in non-differentiated, legacy high-rise units priced between RM500000 and RM1000000 in less strategic locations, for which banks remain selective in approving loans.
Agent insight
For agents seeking investment opportunities, the “sharp bifurcation” in the Johor property market is a critical consideration. While overall transaction volumes might be moderating, the strong demand and price increases for properties near the RTS Link and landed homes indicate significant growth potential in these specific segments. Agents should focus their efforts on these high-demand areas and be prepared to explain to clients why these properties command higher average price points and stricter loan appraisals.
The market's “intense demand and rapid capital appreciation” for RTS Link properties, alongside the premium for landed residences, highlights buyers' strong preference for transit accessibility and larger living spaces. Agents should emphasize the long-term value and potential for appreciation in these properties when presenting to prospective buyers, especially given Johor's sustained economic growth and monumental cross-border infrastructure projects like the Johor-Singapore Special Economic Zone (JS-SEZ).
However, agents should also be mindful of the challenges posed by “non-differentiated, legacy high-rise units priced between RM500000 and RM1000000 in less strategic locations.” Banks are more selective in approving loans for these projects, suggesting potential difficulties in sales. Agents need to be transparent about the potential risks associated with these properties and help buyers understand the reasons for selective lending, guiding them towards properties that better align with “investment-grade assets.”
Checks before follow-up
Verify the latest construction progress and estimated completion date of the RTS Link.
• Investigate current market prices and historical appreciation data for specific properties near the RTS Link.
• Understand the latest bank loan approval policies for properties near the RTS Link versus non-strategic high-rise units.
• Research the latest developments in the Johor-Singapore Special Economic Zone (JS-SEZ) and its impact on the surrounding property market.
• Assess the impact of rising construction costs on new project pricing and future affordability.
Who to follow up with
Investors seeking properties with strong appreciation potential and connectivity
• Family buyers looking for larger living spaces in landed properties
• Agents interested in the impact of the Johor-Singapore Special Economic Zone (JS-SEZ) development
What to watch next
Official operational date and initial ridership data for the RTS Link
• Official launch and implementation details of the Johor-Singapore Special Economic Zone (JS-SEZ) master plan
• Changes in bank loan approval policies for different property types
Buyer follow-up message
Given the strong demand for properties near the RTS Link, what are your thoughts on their long-term appreciation potential? We could also explore options in other areas if your budget is a key consideration.
FAQ
How much have property prices increased near the RTS Link?
According to the report dated 2026-11-11, properties near the RTS Link are experiencing “rapid capital appreciation.” For example, serviced apartments at Tropez Danga Bay rose from RM500000 to RM520000. Landed homes also saw significant increases, such as 2-storey terraced houses at Horizon Hills rising from RM820000 to RM850000.
Which types of properties are underperforming in the Johor market?
As per the report dated 2026-11-11, the bulk of unsold completed units are concentrated in non-differentiated, legacy high-rise units priced between RM500000 and RM1000000 in less strategic locations. Banks remain selective in approving loans for these properties.
An agent’s follow-up message
Hi there! The Johor property market is currently seeing an interesting split. Properties near the RTS Link are in high demand and prices are rising. Are you looking for properties with good connectivity, or perhaps more interested in landed homes? What's your budget and any specific commute requirements?