Johor is currently the most attractive property investment destination in Malaysia, offering investors a compelling mix of strong price appreciation, favourable rental returns and transformative infrastructure projects, said Kashif Ansari, Co-Founder and Group Chief Executive Officer of Juwai IQI.
Ansari said Johor’s residential property prices rose 5.3% in the latest annual data released by the National Property Information Centre (NAPIC), significantly outpacing the national average growth of 0.7%.
“This level of outperformance is attracting buyers and positioning Johor as a top destination for property investment in 2026,” he said.
Several large-scale developments are underpinning demand in the state’s property market, including the Forest City Special Economic Zone, the Johor-Singapore Special Economic Zone and the cross-border Rapid Transit System (RTS) link connecting Johor Bahru with Singapore.
These projects, combined with continued manufacturing investments, are expected to boost population growth and economic activity in the southern state. Ansari noted that Johor has become a key destination for interstate migration, with strong interest also coming from foreign buyers in Singapore, China and other regional markets.
Johor Bahru currently offers gross rental yields ranging between 5% and 6.5%, compared with mortgage rates of about 4.5% for a typical 30-year housing loan. This suggests that rental income could potentially cover financing costs in many cases, improving investment returns for property buyers
If current growth trends persist, a RM400,000 property could appreciate to more than RM530,000 within five years, reflecting significant capital gain potential, Ansari added.
Investor interest is strongest for landed residential properties priced between RM400,000 and RM700,000, particularly two- and three-storey terrace houses located near key infrastructure corridors and close to the Singapore border.
Areas such as Iskandar Puteri and Tebrau have attracted heightened attention due to strong rental demand from professionals and cross-border workers, as well as prospects for long-term price appreciation.
Ansari said Malaysia’s stronger-than-expected economic growth, relatively low inflation and stable interest rate environment are supportive factors for the property sector.
“Within the broader Malaysian market, Johor offers the best combination of yield and growth at present,” he said, describing the state as his top property investment pick for the year.
Juwai IQI said it transacted more than 48,000 properties globally in 2024 and continues to see rising engagement from investors seeking opportunities in high-growth regional markets.
