INTERACTIVE: Southern surge in housing demand
PETALING JAYA: Projects to strengthen economic and transport links between Johor and Singapore are fuelling a housing boom in parts of the southern state.

According to data from the National Property Information Centre (Napic), Johor Baru last year became Malaysia’s most popular location for home buyers, overtaking property hotspots in the Klang Valley.

There were 23,406 residential property transactions in Johor Baru in 2023, with Selangor’s Petaling district second at 15,963 and Kuala Lumpur third at 13,752.

Napic director Norhisham Shafie said the implementation of the Johor-Singapore Special Economic Zone and Financial Special Zone by the state government had helped boost the growth of the property market in Johor.

“This is a boost towards rapid economic growth in Johor in the next two years,” he said.

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The number of residential property transactions in Johor last year (23,406) grew by 8,688 compared with 2022, the highest growth among all districts in the country.

Two other Johor districts were second and third. Kota Tinggi recorded a growth of 1,477 transactions, followed by Kulai with 1,270.

Who are the buyers?

Real Estate Housing Developers Association (Rehda) Johor branch chairman Wong Boon Lang said the recent increase in property sales in the Johor districts was mainly from local buyers.

“Based on information from our members, more than half of the residential property in the area are taken up by locals as they see the rapid development underway such as the Johor-Singapore Special Economic Zone (JS-SEZ) and the Johor Baru-Singapore Rapid Transit System (RTS) Link project,” he said.

Wong said local buyers of residential properties mainly intend to inhabit them either as a first home or as an upgrade from their current residence.

In terms of price, Johor Baru was the most popular location nationwide for buyers looking to purchase homes in the RM300,000 to RM900,000 range.

It was also the second most popular location for affordable housing, after Kinta, Perak, at prices ranging between RM100,001 and RM300,000.

Most of the houses sold in Johor Baru were priced at RM500,000 and below, at 13,559 or 58% of transactions, while the rest were above RM500,000.

Wong from Rehda said Malaysian property buyers can benefit from their purchase due to rising property prices in Johor.

“Those who work in Singapore have a higher income and can afford a better home of a higher value.

“We also see that the property overhang in the area has improved by about 20% and this shows that people are taking up the opportunity to clear up old stock.

“If they buy houses from new projects, prices may be higher due to the rising costs of materials,” he said.

He said while the property prices in the Johor Bahru Central Business District (CBD) may have gone up, locals can also benefit from cheaper alternatives from property that are available in Kota Tinggi, Kulai and others.

Perak’s Kinta tops for lower priced properties

While Johor Baru is the overall leader in terms of residential property transactions, Perak’s Kinta district retained its position as the most popular location where buyers could find houses priced at RM300,000 and below, despite recording a drop in number of purchases in 2023.

For houses priced at RM300,000 and below, Kinta saw the greatest number of transactions both in 2022 and 2023.

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A real estate negotiator in Ipoh, Mohamad Daim Hafizy Ahmad, said the purchasing power of house buyers in the Kinta district, where Ipoh is located, had gone down last year compared with 2022.

He said some local prospects living in the area with reduced incomes found it difficult to secure loans.

“There is not enough economic activity that can boost incomes for the residents here.

“For applicants who work and live in Ipoh, many of the one I received had low savings and incomes.

“This makes it more difficult for them to own a home because they will need to make joint applications for loan approvals and find projects where developers offer rebates and other incentives to reduce upfront costs,” he said.

Mohamad Daim said based on his observations, most home buyers in Ipoh are those who work in other states such as Penang and the Klang Valley.

“This group is among the biggest contributors to the number of house purchases in Kinta based on my records,” he said.

He added that the mismatch between the demand and supply had also contributed to the lower house sales in the district in 2023.

“There is a lack of affordable housing in Ipoh. Many new projects here are priced at above RM300,000,” he said.

However, Mohamad Daim said Ipoh is popular for its tourist attractions and due to its strategic location, there will be continuous demand for houses in the area.

“Ipoh has also recently been recognised by Unesco as a City of Music.

“Visitors can also commute easily via the ETS, commuter or bus to get to reach the north or central region.”
housing,Johor
Price is important when buying a house, but location is key. We explore the most popular places in Malaysia where demand is surging for residential properties.