Short answer: It can be, but not automatically. Reported gross rental yields are roughly 2% to 4% for typical units and up to about 5% for prime ones (NST, January 2026), while price growth has been described as low single digits in recent years. At the same time Johor has the highest number of unsold completed homes and unsold serviced apartments in Malaysia (Malay Mail, September 2026). Location, price paid, exit plan and currency matter more than the JB label.

Last verified: 7 October 2026. This is a planning guide, not legal, tax or financial advice, and not investment advice. Rules and prices change, so check the official sources.

What do investors hope to gain in Johor Bahru?

The case usually rests on three things: lower prices than Singapore, rental demand from people working across the border, and the RTS Link, now targeted for February 2027 (see RTS Link explained). The JS-SEZ framework adds an economic story, which we cover in the JS-SEZ buyers guide. None of these guarantees a return on a specific unit.

What rental yields are reported?

Sources give different ranges, so treat all of them as estimates:

Gross yield is before management fees, maintenance, vacancy, loan interest and tax. Use our rental yield guide to work out your own net number, and ask for actual achieved rents of the same building, not brochure projections.

What is happening with prices?

NST (January 2026) reports an average of about RM700 per sq ft in Johor Bahru and RM1,200 to RM1,300 per sq ft near CIQ and RTS stations, with new projects priced 40% to 50% higher than comparable resale units. It describes annual house price growth as “low single digits in recent years”. The gap between new and resale is a risk if you buy new and later have to compete with cheaper subsale stock. See new launch vs subsale and prices by area.

How much unsold stock is there?

Malay Mail (10 September 2026), citing the national valuation department’s H1 2026 report, says Johor has 4,222 unsold completed homes and 9,946 unsold completed serviced apartments, both the highest of any state. It also reports Johor had 6,697 new residential launches in the period, second to Selangor. The same report quotes the Finance Minister II saying the market remains steady given stable prices and transactions.

NST (January 2026) adds that at least 8 high-rise developments near the RTS corridor were planned or under construction, with over 14,000 apartment units expected to complete between 2029 and 2030. More supply near the same stations can cap rents and resale prices.

What are the main risks?

How do I decide whether a specific unit is worth it?

  1. Define the goal: own stay, rent, or resale gain. Each needs different locations.
  2. Compare the price per sq ft with subsale units in the same area, not just other new launches.
  3. Count competing supply within walking distance and in the next three years.
  4. Ask for actual rents and vacancy for the building.
  5. Run the numbers with a real loan quote and the full cost list.
  6. Check approval conditions, title and developer track record with our project due diligence guide.
  7. Plan the exit before you pay the booking fee.

For units near the checkpoint, read property near the RTS Link. Ask JOHOME on WhatsApp for the current price list and for comparable subsale examples.

Frequently asked questions

Is Johor Bahru property a good investment in 2026?

It depends on the unit. Yields are reported at roughly 2% to 4% typically, price growth has been low single digits, and unsold stock is high. Location, price and exit plan decide the result.

What rental yield can I expect in Johor Bahru?

NST (January 2026) quotes 2% to 4% gross for typical assets and up to 5% for prime ones. Some brokers quote higher figures for specific areas, which are estimates, not official data.

Is there oversupply in Johor Bahru?

Johor has the highest unsold completed homes (4,222) and serviced apartments (9,946) of any state, according to the H1 2026 report cited by Malay Mail. Supply near RTS stations is also growing.

Prices near stations have already risen in anticipation, with NST reporting RM1,200 to RM1,300 per sq ft near CIQ and RTS. Whether prices rise further is not guaranteed, and more supply is coming.

Can foreigners get a loan to buy investment property in Johor?

Yes, from Malaysian banks (commonly up to about 70%) or some Singapore lenders, but terms vary by lender. See Can Singaporeans use CPF or a Singapore loan?.

Is it better to buy new launch or subsale for investment?

Subsale can be cheaper per sq ft, while new launches offer payment schemes and newer facilities. Compare both against real rents before deciding.

Sources