Johor Leads Malaysia’s Residential Price Growth in 3Q2025, Says JLL Malaysia

KUALA LUMPUR (Nov 7, 2025) — Johor has emerged as the top-performing state for residential property price growth in the third quarter of 2025 (3Q2025), surpassing Kuala Lumpur, Selangor, and Penang, according to JLL Malaysia’s latest market briefing.

JLL Malaysia managing director Jamie Tan revealed that the state’s property boom was largely fuelled by rising prices in both serviced apartments and landed homes, alongside strong development activity in the Johor-Singapore Special Economic Zone (JS-SEZ).

Serviced apartments in Johor saw an average price jump of 20.8%, increasing from RM549 psf in 2024 to RM711 psf in 3Q2025, driven by a wave of high-end project launches. Meanwhile, landed homes in Johor Bahru recorded a 10.2% increase, up from RM352 psf to RM388 psf during the same period.

The southern state’s residential market has shown remarkable resilience over the past few years. Between 2021 and 2025, transaction volumes climbed from approximately 6,000 units in 1Q2021 to a peak of 12,500 units in 3Q2024, while transaction values nearly doubled from RM2.5 billion to RM5.8 billion, before moderating slightly to RM4.8 billion in 2Q2025.

Tan attributed Johor’s continued upward momentum to large-scale infrastructure upgrades and growing investor confidence, particularly in industrial and data centre investments that continue to spill over into the housing market.

Kuala Lumpur’s Prime Residential Market Holds Steady, But Office Sector Remains Cautious

In Kuala Lumpur, demand for prime residential properties remains steady, supported by both domestic and international buyers. Government initiatives — such as doubling the Housing Credit Guarantee Scheme to RM20 billion and extending stamp duty exemptions — have provided additional support to maintain market stability.

However, the office market in KL continues to experience muted sentiment. According to JLL Malaysia’s head of office leasing advisory, Quiny Lee, the “flight to quality” trend persists as occupiers migrate to newer, Grade-A green-certified office spaces. This movement has led to a slight uptick in vacancy rates following the completion of new office towers.

Lee added that rental rates for green office buildings rose to RM10.47 psf in 3Q2025, compared to RM8.32 psf in 3Q2022, while non-green offices also saw growth from RM5.36 psf to RM6.05 psf over the same period.

These trends highlight that although the demand for commercial property in KL remains steady, corporate occupiers are becoming more selective, favouring sustainability and long-term cost efficiency.

Industrial Property Market Sees Temporary Slowdown

Meanwhile, the industrial property sector showed signs of moderation in 3Q2025. JLL Malaysia’s logistics and industrial senior manager Derek Yap attributed the softer demand to global trade uncertainties, including higher US tariffs and the expansion of Malaysia’s sales and service tax (SST).

“While we observed a 6.3% vacancy rate this quarter, new industrial supply entering the market continues to support overall market health,” Yap said.

Despite the short-term slowdown, Malaysia’s industrial land in Selangor, factory developments in Puchong, and industrial property in the Subang area continue to attract strategic investors — particularly in logistics, warehousing, and data centre operations.

Overall Outlook

According to JLL Malaysia, Malaysia’s property market remains resilient, with residential and industrial sectors driving steady activity despite external challenges. Johor’s performance underscores a broader recovery in buyer confidence, while commercial and office spaces in Kuala Lumpur continue to evolve in response to sustainability trends and post-pandemic workplace shifts.