Property prices in Johor Bahru have skyrocketed, driven by burgeoning interest from Singaporean and Chinese buyers, leaving many locals feeling priced out of the housing market. The Johor state government has taken action against developers failing to comply with affordability regulations, as the city grapples with the rising demand for housing. Developers are mandated to allocate 40% of their units to the state's affordable housing scheme (RMMJ), with prices capped at RM300,000. However, foreign buyers continue to dominate the market, especially in prime areas near the city center.
The influx of foreign buyers, particularly from Singapore and China, has significantly impacted the demographic in developments like Princess Cove, where they constitute around 80% of the residents. This surge in demand has driven up property prices, making it difficult for locals to afford homes in central Johor Bahru. Many are forced to rent, relocate to smaller homes, or move to suburbs such as Kota Tinggi and Kulai, where transport infrastructure lags behind the city center.
“Today, even with a gross housing income of RM5,000 (taking into consideration family expenses), we simply cannot afford a mortgage for any landed property or apartments. The sharp increase in property prices in JB means that we are priced out of our dream home,” – Nana
The Johor state government is aware of the growing discontent among locals who believe that city center housing is increasingly reserved for wealthy foreigners. In response, the state government has launched the Johor Care Housing Programme, offering homes priced around RM55,000 through subsidies and infrastructural assistance. Despite these efforts, occupancy rates in the city center range from 80-100%, indicating a sustained demand from foreign buyers.
“The state government acknowledges the importance of housing as an agenda and strives to make the dream of every Johorean to own their own home a reality,” – Onn Hafiz Ghazi
The announcement of the 4km JB-Singapore RTS Link, expected to commence service by the end of 2026, aims to alleviate traffic congestion on the Causeway and has further fueled property interest near Johor Bahru. Foreign buyers see this as an opportunity for investment due to its proximity to Singapore and potential for property appreciation.
However, some Singaporean investors who previously bought properties in Johor have expressed regret due to an oversupply of homes, difficulties in renting out their units, and the weakening ringgit against the Singapore dollar.
“For one simple reason, the powerful Singapore dollar will appreciate against (most) of these currencies and over time you'll find that even if the house value has gone up, the appreciation is somewhat discounted by the Sing dollar strengthening,” – Loo Cheng Chuan
On the ground, locals express frustration at being outpriced in their homeland. The situation is exacerbated by foreign ownership thresholds set at RM1 million for most homes and RM2 million for landed houses within international zones.
“We, the Malaysians, are forced to rent from them (foreign owners). This is not an okay situation for me. We are the ones born here, yet they (foreign buyers) are the ones who afford to buy those houses,” – Izzah Masturah
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