From Underrated to Unmissable: Johor Emerges as Investment Magnet

By: Velorine

KUALA LUMPUR: Malaysia’s Asean chairmanship in 2025 is poised to deepen regional economic integration, attract increased foreign investment, and spur real estate demand particularly in Johor.

With strategic developments accelerating across Johor Bahru and the Iskandar Malaysia region, the state is set to benefit from growth in the residential, commercial, and industrial sectors, according to Henry Butcher Malaysia.

Catalytic infrastructure improvements, along with heightened tourism appeal, are expected to drive this momentum further.

While geopolitical uncertainties remain a concern globally potentially impacting investment flows and supply chain stability they also create openings for emerging logistics hubs. Johor, with its strategic location and evolving infrastructure, is well-positioned to capitalise on such shifts, offering itself as a regional trade and logistics centre and a safe-haven destination for property investments.

Johor’s strengthening economic ties with Singapore bolstered by the upcoming Rapid Transit System (RTS) Link, the Johor-Singapore Special Economic Zone (JS-SEZ), and the Special Financial Zone (SFZ) are reinforcing its attractiveness to investors.

Combined with the twin-city synergy between Johor Bahru and Singapore, these developments are supporting strong and growing demand in key urban areas.

Outlook for 2025

● Johor’s property market is expected to perform better.

● Johor’s residential property market is set for steady growth.

● The commercial property market in Johor is anticipated to see moderate growth.

● Johor’s retail property market is expected to thrive.

● The hospitality market in Johor is looking to remain stable.

● Johor’s serviced apartments sub-sector is anticipated to sustain growth.

● Johor’s industrial property market is expected to remain positive and grow.

Factors to Watch in 2025

● Rapid Transit System (RTS) Link, connecting Singapore to Johor Bahru.

● Special Financial Zone (SFZ) status designated for Forest City and Medini City in Iskandar Puteri.

● Attention from data centre players.

● The Johor-Singapore Special Economic Zone (JS-SEZ).

● Kuala Lumpur-Singapore High-Speed Rail (KL-SG HSR).

● Geopolitical risks and global economic uncertainties, causing currency and regional trade fluctuations.

● Cross-border business dynamics, especially from Singapore.

Bright Spots in 2025

● Proximity to Singapore boosting trade and investment opportunities.

● Economic integration between Malaysia and Singapore drives growth in real estate and industrial and commercial sectors.

● JS-SEZ in Iskandar Malaysia and the Pengerang area and the SFZ in Forest City.

● Johor’s affordability attracts regional and global investors.

● Johor Bahru city centre and the RTS Link’s surrounding areas.

● Projects like the RTS Link, highways and port upgrades will enhance connectivity.

● The Gemas Johor Bahru Electrified Double Track Project (Gemas-JB EDTP) is expected to be fully completed by April 2025.

● Johor Bahru has experienced a notable increase in high-rise developments (serviced apartments/apartments), encompassing newly completed, ongoing and planned developments.

● Johor Bahru city centre, areas within new development projects and sea-fronting areas.

● Iskandar Puteri region and Kulai areas.

● Hotel Sheraton Johor Bahru, scheduled to open in 2025.

With infrastructure milestones on the horizon, favourable policies in place, and continued interest from regional investors, Johor’s property market is expected to see steady and sustained growth throughout 2025.