Rental Returns in Johor Bahru: Which Areas Are Performing Best?

Introduction

Johor Bahru (JB) has become a magnet for property investors, especially with its proximity to Singapore, cost-effective living, and infrastructure growth like the RTS Link.

But which areas in JB offer the highest rental returns?
Whether you're a local investor, a foreigner under MM2H, or a Singaporean seeking ROI, this guide highlights where your money can work hardest for you.

1. Medini Iskandar – The Investment Darling

Medini, located within the Iskandar Puteri zone, is fast becoming a top rental hotspot due to:

• Proximity to Legoland, Gleneagles Hospital, EduCity

• Modern condos with dual-key and Airbnb-friendly layouts

• No RPGT and no minimum price threshold for foreigners

Rental ROI Range: 5.5% – 8.5%
Popular among: MM2H retirees, weekend home seekers, parents with kids in international schools

 Image Suggestion: Aerial view of Medini skyline with Legoland and skyscrapers
Alt text: “Medini Iskandar modern development near Legoland”

2. Johor Bahru City Center (CIQ) – For Singaporean Tenants

This zone, especially around R&F Princess Cove, Danga Bay, and Stulang Laut, draws cross-border tenants due to:

• RTS Link (under construction), JB Sentral, City Square Mall

• Walking distance to SG customs

• Sea-facing units with luxury appeal

Rental ROI Range: 5.0% – 7.5%
Best for: High-income tenants working in Singapore but living in JB

 Image Suggestion: Night view of R&F and Johor Bahru skyline from across the Causeway
Alt text: “CIQ Johor Bahru condo skyline facing Singapore”

 3. Mount Austin – The Young Working Crowd’s Choice

Mount Austin is one of JB’s most vibrant areas, famous for:

•  Lifestyle: Cafes, bars, Austin Heights Waterpark

• Austin Heights schools

• Affordable 2–3 bedroom units for long-term stay

Rental ROI Range: 4.8% – 6.5%
Ideal for: Local professionals, small families, students

 Image Suggestion: Street shot of Mount Austin’s food strip or park area
Alt text: “Mount Austin lifestyle district for young tenants”

4. Taman Molek & Permas Jaya – The Quiet Stability

These mature neighborhoods may not be flashy but are known for:

• Proximity to banks, offices, and golf courses

• ‍ Corporate expats and long-stay tenants

•  Balanced supply and demand

Rental ROI Range: 4.2% – 5.5%
Attracts: Long-term tenants who value convenience and peace

 Image Suggestion: Calm neighborhood shot with tree-lined streets and low-rise condos
Alt text: “Permas Jaya & Molek mature residential areas”

5. Tebrau & Desa Tebrau – Affordable with Volume

If you're seeking volume-based rental strategy:

• Near AEON Tebrau, IKEA, and Toppen Mall

• Good highway access and public transport

• Mix of landed and high-rise units

Rental ROI Range: 4.5% – 6.0%
Great for: Entry-level investors, young couples

 Image Suggestion: Toppen Mall aerial shot or inside AEON Tebrau
Alt text: “Desa Tebrau near shopping and highway access”

6. Rental ROI Quick Comparison Table

Conclusion: Diversify with Strategy

Johor Bahru offers diverse rental markets that suit various investment profiles. Whether you're seeking:

• High turnover, short-stay Airbnb in Medini

• Premium long-stay rental in CIQ

• Budget-friendly long-term tenants in Mount Austin or Tebrau

...JB has an option for you.