KUALA LUMPUR: Johor is the standout property investment destination in Malaysia this year, offering investors a rare combination of the country’s fastest-rising house prices, strong rental yields, and several big infrastructure projects that will continue to drive growth, according to comments released by Kashif Ansari, co-founder and group CEO of Juwai IQI.
“When I look across Malaysia’s property markets, Johor stands alone right now,”
Ansari said, adding that house prices there rose 5.3% in the most recent annual figures from Napic, which is several times faster than the national average of 0.7% and more than any other state.
That sort of outperformance attracts buyers.
“The Forest City SEZ, the Johor-Singapore Special Economic Zone, the Rapid Transit System link, and a sustained wave of manufacturing investment have all contributed to creating buyer demand in the property market. This is a once-in-a-lifetime series of transformations that will permanently raise prices in the local market,” said Ansari.
He added that these projects make Johor a magnet and help explain its rapid population growth.
Johor is the destination for nearly three out of four Malaysians who move between states. And the number of people living in Johor is increasing by 12.5% per year. The population of the state will double in about six years.
“Johor also gets strong cross-border interest from Singapore, China, other parts of Asia, and Europe and Australia. In sum, Johor is a top destination in a way it simply was not five years ago,” Ansari noted.
He said gross rental yields in Johor Bahru run between 5% and 6.5%.
The mortgage interest rate on a typical 30-year home loan today is around 4.5%. That means, in most cases, the rental income your property generates will likely be higher than your financing costs. So, your tenant is effectively paying your mortgage.
“And prices are appreciating. If Johor continues growing at its current pace, the same RM400,000 property could be worth more than RM530,000 in five years. That is a substantial gain on a relatively small deposit,” said Ansari.
“Not all of Johor is the same,“ Ansari warned.
“The strongest performers are landed homes priced between RM400,000 and RM700,000, especially in growth corridors near new infrastructure and the Singapore border. Two-to-three-storey terrace houses are by far the most transacted property type.
“Some areas that appear to have the most investor interest are Iskandar Puteri, Tebrau, and the RTS corridor. These locations have good rental demand from professionals and cross-border workers. They also promise potential price appreciation. Every buyer should carefully research their acquisition, however.
“Johor is a market with genuine fundamentals that investors believe they can rely on for the medium to long term.”
“Malaysia’s economy is growing faster than expected, inflation is low, and interest rates are stable,” said Ansari.
“These tend to be ideal conditions for property investment. But within Malaysia, Johor offers the best combination of yield and growth right now. That is why I call it my top pick for 2026,” he added.
