JB Property Guide 2025: Where to Invest in Johor Bahru

This article discusses factors to consider when purchasing property in Johor Bahru (JB) in 2025, given the increased interest in real estate there. It shares a property agent's perspective and investment theory, outlining key preferences and considerations.

Preference #1: Proximity to the RTS Station

The primary recommendation is to prioritize properties near the Rapid Transit System (RTS) station.

• Similar to Singapore and other countries, properties near transportation hubs are highly desirable.

• The JB RTS station is particularly important as a key link for travel to Singapore.

• The ideal scenario is a property within walking distance of the RTS station.

• Projects within a 1-kilometer radius of the RTS station are considered "S tier" or "super tier" investments, representing the best locations. However, walkability must be safe and practical, considering factors like pedestrian pathways and shelter from the elements.

Preference #2: Mixed Development Condos

The second preference is for condominiums within mixed developments that include retail components.

• The larger the retail component, ideally a shopping mall or larger, the better.

• This preference stems from the convenience of having amenities like supermarkets and food options readily accessible, a common feature in Singapore and Kuala Lumpur (KL).

• Many existing JB condos are standalone, lacking this convenient retail integration.

• This makes mixed-use developments particularly appealing.

Limited Options Meeting Both Criteria

Currently, only a few condos in JB meet both the criteria of being near the RTS station and part of a mixed development.

• RF Princess Cove.

• The XIM project near the CIQ (launching soon).

• The Sunway project on top of the RTS station (launching end of 2026).

• These three options are considered the best based on these preferences.

Addressing Objections

Objection #1: High Price

Condos near the RTS station can be more expensive (RM1,000+ per square foot).

• Buying good property often comes with a higher price.

• If budget is a concern, city fringe locations (5-10 km from the RTS) offer more options at potentially lower prices (RM700-800 psf).

• These grade "A" properties include locations like Danga Bay and Lakington, and even potentially, Sibong Cove.

• However, the supply in these areas is also high.

• Consider prioritizing the "S tier" RTS-proximate properties, even at a higher cost.

Grade B and C Locations

• If considering cheaper options, explore grade "B" locations like Austin, Taman Sutera, or Medini in Puteri Harbour (foreigner eligible).

• Grade "C" locations such as Pasir Gudang or Gelang Patah are even further away and generally not recommended unless there are compelling reasons like family ties or familiarity with the area.

Objection #2: Preference for Landed Property

Landed property prices in JB have increased, with decent houses starting at RM1 million or higher.

• Cheaper landed properties (around RM700,000) often lack security, are older (20-50 years), or are located further away in areas like Kulai or Pasir Gudang.

• Limited land availability in JB town means fewer landed developments and increased prices.

• Opportunities to find cheaper landed properties may exist through bargain hunting for resale units in the RM800,000 - RM900,000 range.

Importance of Personal Situation and Lifestyle

Property purchase decisions should consider individual circumstances and lifestyle requirements.

• Retirees: Might prefer smaller, manageable properties in convenient locations.

• Smaller Families: May opt for condos near town for easy access to work and amenities.

• Larger Families: Could benefit from landed properties with more space.

• Consider whether the property is suitable for your specific needs. Don't buy landed when a condo would better suit a couple. Similarly, a condo might not work well for a big family.

Investment vs. Own Use

Consider the purpose of the property: investment or own use.

• Investment properties typically require good rental yield to cover loan installments.

• Avoid overly focusing on investment properties with very small units (studios or one-plus-one dual-key) that can lead to a building dominated by investors and tenants, potentially impacting the building's overall appeal.

• A healthy development has a high proportion of owner-occupiers or long-term tenants.

• Properties in buildings with more owner-occupiers tend to have better long-term capital appreciation.

Final Thoughts

Before buying, clarify your needs and consider your own scenario rather than solely relying on others' opinions. Understanding your individual requirements will help narrow down the options and ensure you make the right decision.