BY NURUL ASMUI MD AZMI

Johor is linked to Singapore by causeway.

Johor, a Malaysian state that is linked to Singapore by causeway, is fast becoming one of the preferred destinations for international as well local property investors. Situated in the southern part of Peninsular Malaysia, Johor consists of a diverse type of properties spread across 10 districts, namely Johor Baru, Kota Tinggi, Pontian, Kluang, Mersing, Batu Pahat, Muar, Segamat, Kulaijaya and Ledang.

It is always best to know which area and what property is highly preferred based on reliable property sources as well as what experts say before making that important decision of ‘to buy or not to buy’.

Popular property types in Johor
All 10 districts in Johor offer more or less the same type of properties, but might differ in terms of layouts, concepts and architecture as some districts adopt a more modernised approach compared to others.

The graph below (Figure 1) illustrates the number of transacted property according to its sub sectors in Johor for the first quarter of 2015. The graph incorporates three main types of properties; residential, commercial and industrial, transacted at any price range.

Figure 1.

Either for investment, or for own stay, residential property is the most preferred transaction in Johor. As shown in Figure 1, the most popular property type in Johor is residential with a total number 7,719 property transacted, compared to 1,364 commercial and 390 industrial.

Residential property is then divided into many sub-categories, with terrace, semi-detached, detached (i.e. bungalow), condominium/apartment and flat as its main sub-categories.

The graph below (Figure 2) shows the number of residential property transacted according to type and district. The “terrace” category includes 1- to 2.5-storey terrace units, and the “semi-detached” category includes 1- to 2.5-storey semi-detached units.

Figure 2.

Among the different types of residential properties, concentration is largely on 1- to 2.5-storey terrace houses. Each district in Johor shows a high transaction value for terrace units for the first quarter of 2015.

The preference of terrace house could be due to the economical value of landed houses in Johor compared to other states that also has a high property transaction in Malaysia, such as Kuala Lumpur, Selangor and Penang.

Hotspot location in Johor
According to the property sales data obtained from NAPIC, the hotspot area for residential property is Johor Baru with 3,205 units, followed by Kluang with 823 units and Batu Pahat and Kulaijaya with 561 units. (As shown in Figure 3).

Figure 3.

Johor Baru might be the hotspot for property hunters because of its strategic connectivity to Singapore. It is also a main shopping attraction for tourists, especially those from Indonesia and Singapore.

Some people who are working in Singapore might buy a property in Johor Baru because of the cheaper property value compared to Singapore, and some might buy for rental investment.

Rental investment can either be for short term or long term. Short term rental is usually for tourists who might be looking for accommodations while visiting Johor Baru, whereas long term rental could be for those who are not seeking to stay in Johor Baru permanently, or those who can't afford to own a property yet.

The key of buying or investing in a property is always location, location, location. Based on the graphs of the transacted properties in Johor, it is best to say that Johor Baru is an ideal location to purchase a property, especially a landed residential property.

Stay updated!
To find out more about recent property developments in Johor, visit the StarProperty.my Fair that is happening in Johor Bahru City Square, Johor Baru this weekend.

Visitors to the fair can participate in a quick survey at the StarProperty.my booth for a chance to win a Samsung Galaxy Tab 3 Lite or a one-year subscription of The Star e-paper worth RM350. Those who purchase a property at the fair can submit their sales order form to StarProperty.my booth to participate in a lucky draw and stand a chance to win Senheng cash vouchers worth RM888, RM2,888 or RM5,888.

The StarProperty.my Fair will take place from Aug 21 to Aug 23, 10am to 10pm.

Admission is free. For more information, visit fair.starproperty.my