Johor Bahru Property Market 2026: Busy but Not Overheated, High Overhang
Despite steady sales in 2025 and faster-than-national price growth, Johor Bahru holds the highest number of unsold completed homes in Malaysia in 1H2026, particularly serviced apartments.
What happened
According to a report dated 2026-10-17, the Johor Bahru residential market saw steady sales in 2025 with 42566 transactions valued at RM20.94 billion, similar to 2024 figures. House prices in 2025 grew by 6.9%, outpacing the national average of 2.6%. However, as of 1H2026, Johor had the highest number of unsold completed homes in Malaysia, totaling 4222 units, with serviced apartments alone accounting for 9972 unsold units in 1Q2026.
The report indicates a softer start to 2026 for property transactions nationally, and Johor is no exception. Nevertheless, Johor remains Malaysia's second-largest residential market. In 1Q2026, approximately 63% of residential deals were for properties priced at RM500000 or below, with terraced houses making up over half of the transactions. Future supply is substantial, with 70177 high-rise units and 38448 landed homes in Johor's pipeline as of 4Q2025.
Agent insight
The Johor Bahru property market in 2026 presents a dual narrative. On one hand, infrastructure projects like the RTS Link (expected to commence service in February 2027) and the Johor-Singapore Special Economic Zone (JS-SEZ, signed on 2025-01-07) are driving demand, especially for properties near transport hubs. For instance, asking prices for resale serviced apartments within 1 km of the RTS station have reportedly risen from RM600000-RM800000 to RM1000000-RM1300000. Data centers and industrial growth are also bringing jobs and investment to the state, with industrial land averaging RM86 psf in 2025, up 8.4%.
On the other hand, the significant overhang of completed unsold homes, particularly serviced apartments, poses a challenge for the high-rise market. Buyers considering condos in JB city, Danga Bay, or Iskandar Puteri will face competition from a large pipeline of new stock, which could intensify competition in both resale and rental markets. Consequently, for high-rise units, buyers currently have the upper hand, with more time to compare and negotiate. Landed homes in established areas, however, show a mild seller's advantage due to steady owner-occupier demand and rising resale prices.
Agents should advise clients to carefully evaluate their buying intentions. For owner-occupiers, buying a landed home in a mature area within budget might be a more secure option. For investors, focusing on completed subsale units allows for assessment of real rents and transaction prices, rather than projections. When considering any high-rise unit, it is crucial to count how many similar units are unsold or coming within 2 km before making an offer, and to secure loan approval first to leverage the softer 2026 market for negotiation.
Checks before follow-up
Verify the exact operational date and fares for the RTS Link, and the approval status from APAD and Singapore's LTA.
• Inquire about the latest incentives and eligibility criteria for the Johor-Singapore Special Economic Zone (JS-SEZ).
• Obtain detailed supply data for completed and under-construction high-rise units in the target area.
• Compare actual rents and transaction prices of completed units nearby the target property.
• Assess potential buyers' loan eligibility and repayment capacity under potentially higher interest rates.
Who to follow up with
Buyers seeking landed homes for own stay in mature areas of Johor
• Investors looking to negotiate for high-rise units, leveraging the high overhang and pipeline supply
• Buyers interested in properties near the RTS Link and JS-SEZ, but willing to conduct thorough market research
What to watch next
Announcement of RTS Link fares and confirmed operational date
• Further policy details and investment inflows for the Johor-Singapore Special Economic Zone (JS-SEZ)
• Updated NAPIC data on Johor's overhang figures for 2H2026
Buyer follow-up message
Given the high supply of high-rise units in JB, would you be open to considering completed subsale units where we can assess real rents and transaction prices? Or are you primarily interested in landed properties?
FAQ
Why does Johor Bahru have such a high overhang of unsold homes?
According to the 2026-10-17 report, Johor Bahru had 4222 unsold completed homes in 1H2026, the highest in Malaysia, with serviced apartments alone accounting for 9972 unsold units in 1Q2026. This is primarily due to a large volume of new supply entering the market, particularly in the high-rise segment.
What is the impact of the RTS Link and JS-SEZ on the JB property market?
The report indicates that the RTS Link (expected to start service in February 2027) and the Johor-Singapore Special Economic Zone (JS-SEZ, signed on 2025-01-07) are key drivers of demand in Johor Bahru. They are expected to improve connectivity and attract investment, potentially boosting property values near transport hubs. However, agents should remind buyers that these are long-term positives, and the market still faces challenges from high overhang in the short term.
An agent’s follow-up message
Hi! The latest report on the JB property market shows steady sales and price growth in 2025, but a high overhang of unsold homes, especially serviced apartments, in 1H2026. What type of property are you looking for? What's your budget, and is this for own stay or investment? This helps me tailor my advice.