Johor bahru: Residential property prices in Johor Bahru have surged in the second quarter of 2025, driven by stronger investor confidence for high-end properties following the launch of the Johor-Singapore Special Economic Zone (JS-SEZ).

According to BERNAMA News Agency, real estate consultancy JLL Malaysia’s managing director, Jamie Tan, reported that average transaction prices for serviced apartments surged by 20.4 percent compared to the annual average in 2024. Meanwhile, double-storey terrace houses saw an increase of about 8.6 percent over the same period. Tan attributed the price growth to renewed interest from both local and regional buyers, ongoing infrastructure improvements, and the spillover effect of the JS-SEZ.

Tan highlighted critical infrastructure improvements underpinning the zone’s development, such as the Rapid Transit System (RTS) Link connecting Johor Bahru and Singapore. This four-kilometre rail link, scheduled to operate by December 2026, will offer an alternative mode of cross-border commute. It is capable of transporting a maximum of 10,000 passengers per hour in each direction, reducing cross-border travel time to just six minutes.

The launch of the JS-SEZ coincided with a period of escalating business costs in Singapore, while Malaysia was strengthening its position as a stable, attractive investment destination and an emerging digital hub. These factors have created a strong pull for many manufacturing and service industries to relocate or establish ‘twin’ facilities in Johor, allowing them to optimize costs while maintaining proximity to Singapore’s market and connectivity.

Officially launched on January 8, 2025, the JS-SEZ spans 3,288 square kilometres across nine flagship areas in Iskandar Malaysia and Pengerang, making it nearly five times the size of Singapore.