‘It’s unacceptable’ — Surging property prices in Johor Bahru spark concerns among local residents

MALAYSIA: The property market in Johor Bahru has seen a significant price surge, largely driven by foreign investors and the upcoming Rapid Transit System (RTS) link to Singapore. The rising demand, particularly in areas near the RTS corridor, has sparked concerns among local residents who fear being priced out of homeownership.

According to real estate analysts who spoke to Channel 8, the strong interest in properties along the RTS route, combined with the development of the Johor-Singapore Special Economic Zone, has accelerated property transactions. In the first nine months of last year, the volume of apartment sales in Johor Bahru jumped by nearly 25%, while serviced apartment transactions doubled.

Iza, a Malaysian resident interviewed by Channel 8 News, shared her frustration over the escalating costs of homeownership. She initially hoped to buy a landed property near Johor Bahru’s city center but has had to reconsider her plans due to the skyrocketing prices. Instead, she is now looking at smaller apartments in suburban areas or renting a home.

“The influx of foreign buyers has driven up housing prices, especially near the Causeway,” Iza said, “It’s unacceptable that locals can no longer afford to buy homes and are being forced to rent from foreign landlords.”

Property consultants caution that the trend is likely to continue. One property management consultant noted that the starting price for a single-storey house in the city has now exceeded RM400,000. Another industry professional highlighted the tough choices faced by lower-income residents.

“House prices will rise significantly. People with lower incomes will have to relocate,” the expert told Channel 8, “Now they have only two choices—either buy a smaller unit within their budget or move farther from the city center to maintain their current living space.”

In response to growing public concern, the Johor state government has introduced measures to ease the housing burden on residents. Authorities have ordered developers to allocate more affordable housing options for locals and are also working to redevelop abandoned or unfinished projects in central Johor Bahru. The government aims to deliver 60,000 affordable homes by 2026 to help mitigate the crisis.

As housing prices continue their upward trend, many Johor Bahru residents remain uncertain about their prospects for homeownership. While government interventions may provide some relief, the broader impact of foreign investment and large-scale infrastructure projects on the local property market remains a pressing issue.