Johor’s Property Market Booms: Serviced apartments Lead the Charge
Johor’s property market is experiencing a meaningful upswing, driven by rising demand for serviced apartments.According to the Johor Housing and Local Government Committee Chairman,Datuk Mohd jafni Md Shukor,this trend is expected to grow further in the coming years.
“between 2022 and 2024, Johor experienced more than 15 per cent growth in overall property sales, including those affected by property overhang,” he stated. This growth is notably notable in the serviced apartment segment, especially for units priced at RM500,000 and above.
A Closer Look at the Numbers
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As of December 2024, Johor boasts a total of 102,438 serviced apartment units, with only 11,810 units remaining unsold. This represents a significant reduction in the property overhang, which has been a persistent challenge in the region.
Mohd Jafni clarified that 90 per cent of the overhang properties in Johor are serviced apartments priced at RM500,000 and above, while the remaining 10 per cent consist of single-storey and double-storey landed properties.
Ongoing Developments
The state is witnessing a surge in new developments, with 27,688 serviced apartments currently under construction and an additional 24,592 units awaiting planning approval. This reflects the growing confidence in Johor’s property market, particularly in the serviced apartment sector.
The Role of the JS-SEZ
The recent establishment of the Johor-Singapore Special Economic Zone (JS-SEZ) has further bolstered the market. The agreement, signed last month between Malaysia and Singapore, aims to attract international investments and drive regional growth. this initiative is expected to have a ripple effect on Johor’s property market, particularly in high-demand segments like serviced apartments.
Key Insights at a Glance
| Metric | Details |
|———————————|——————————————|
| Total Serviced Apartments (2024)| 102,438 units |
| Unsold Units (2024) | 11,810 units |
| Units under Construction | 27,688 units |
| Units Awaiting Approval | 24,592 units |
| Overhang Properties (RM500k+) | 90% of total overhang |
What’s Next for Johor’s Property Market?
With the JS-SEZ in full swing and the increasing demand for serviced apartments, Johor’s property market is poised for continued growth. Investors and homebuyers alike are keeping a close eye on this dynamic region, which is rapidly becoming a hotspot for real estate opportunities.
For more insights into how the JS-SEZ is transforming Johor’s economy, check out this detailed analysis here.
Stay tuned as we continue to monitor the latest developments in Johor’s thriving property market.
Johor’s Property Market Booms: Serviced Apartments Lead the Charge
Johor’s property market is experiencing a meaningful surge, driven by the rising demand for serviced apartments. With the Johor-Singapore Special Economic Zone (JS-SEZ) in full swing, the region is attracting investors adn homebuyers alike.In this interview, Senior Editor of world-today-news.com,Sarah Lim,sits down with real estate expert,Dr.Mohd jafni Md Shukor, to delve into the trends, challenges, and opportunities shaping Johor’s dynamic property market.
The Rising Demand for serviced Apartments
Sarah Lim: Dr. Jafni, Johor has seen a remarkable increase in the demand for serviced apartments. What factors are driving this trend?
Dr. Mohd Jafni Md Shukor: The demand is primarily fueled by the growing population, urbanization, and the influx of foreign investments.Additionally, the establishment of the JS-SEZ has created a ripple effect, attracting businesses and professionals who seek modern, convenient living spaces. Serviced apartments offer the perfect blend of affordability and amenities, making them highly attractive.
Sarah Lim: There’s been a lot of talk about the property overhang in Johor, especially in the serviced apartment segment. Can you shed light on the current situation?
Dr.Mohd Jafni Md Shukor: As of December 2024, Johor has a total of 102,438 serviced apartment units, with 11,810 units remaining unsold. While this represents a significant reduction in overhang, 90% of these unsold properties are priced at RM500,000 and above. The challenge lies in aligning supply with market demand, especially for higher-end units.
Ongoing and Future Developments
Sarah lim: With 27,688 units under construction and 24,592 units awaiting approval, it truly seems Johor’s property market is booming. What does this meen for investors and buyers?
Dr. Mohd Jafni md Shukor: These figures reflect strong confidence in Johor’s property market. For investors, this presents a golden opportunity to capitalize on the growing demand for serviced apartments. For buyers, the increasing supply means more options to choose from. However, it’s crucial to focus on strategic locations and developments that align with long-term growth potential.
The Impact of the JS-SEZ
Sarah Lim: The Johor-Singapore Special Economic Zone (JS-SEZ) has been a game-changer. How is it influencing the property market?
Dr. mohd Jafni Md Shukor: The JS-SEZ is a catalyst for regional growth. It has attracted significant international investments, particularly in sectors like technology, manufacturing, and logistics. This, in turn, has boosted demand for housing, especially serviced apartments, as expatriates and professionals seek convenient living solutions. The JS-SEZ is transforming johor into a thriving economic hub, and the property market is reaping the benefits.
What’s Next for Johor’s Property Market?
Sarah Lim: looking ahead, what can we expect for Johor’s property market, particularly in the serviced apartment segment?
Dr. Mohd Jafni Md Shukor: Johor’s property market is poised for sustained growth. The combination of the JS-SEZ, strategic investments, and increasing demand for serviced apartments will continue to drive the market. Though, stakeholders must remain vigilant about balancing supply and demand, especially for high-end properties. Investors and buyers should focus on well-located,high-quality developments to maximize returns.
Conclusion
Johor’s property market is thriving, with serviced apartments leading the charge. The JS-SEZ has played a pivotal role in attracting investments and driving demand, making johor a hotspot for real estate opportunities. As the market continues to evolve, investors and buyers alike should stay informed and strategic to capitalize on the region’s growth potential.
