Top 5 Johor Bahru Property Hotspots for the Best ROI (2025 Guide)

Johor Bahru has become one of the most popular places in Malaysia for property investment. The city has grown quickly over the last 10 years and today it offers strong rental demand, affordable entry prices, and long-term growth. Because of this, many investors see the Johor Bahru property market as a good place to get stable and reliable returns.

Based on recent reports from NAPIC and major real estate analysts, Johor continues to stay in the top three states in Malaysia for total property transactions. This shows that the Johor Bahru real estate market is active, improving, and supported by many different buyers including Malaysians, Singaporean commuters, and foreign workers.

The opening of the RTS Link between Johor Bahru and Singapore is also expected to boost the market. Many investors believe properties near the RTS station will experience higher demand and stronger price growth in the next few years. With this positive trend, choosing the right Johor Bahru property hotspot can help you get some of the best ROI in Johor Bahru.

Why Johor Bahru Property Is a Good Investment

1. RTS Link between Johor Bahru and Singapore

The RTS Link will shorten travel between Bukit Chagar (JB) and Woodlands North (Singapore) to around five minutes. Property experts estimate that properties within 1km to 3km of the RTS line may increase in value by 15% to 35% once the link opens. This is one of the biggest reasons why the area is becoming a major Johor Bahru property hotspot.

2. Strong cross-border demand

More than 300,000 Malaysians work in Singapore. Many prefer living in Johor Bahru because housing is cheaper and lifestyle is more comfortable. This creates strong rental demand for Johor Bahru investment property and supports a healthy rental market.

3. Growth of Iskandar Malaysia

Iskandar Malaysia continues to attract new development in sectors like education, health, finance, manufacturing, and logistics. As more companies open offices and factories in Johor Bahru, the need for homes and rentals also increases. This helps sustain demand in the Johor Bahru property market.

4. Active student market

Universities and colleges such as EduCity, UTM Skudai, Raffles University, and Southern University College provide steady student rental demand. Areas near these institutions remain strong Johor Bahru property hotspots for high rental yield.

5. Affordable compared to KL

The cost of buying a Johor Bahru investment property is cheaper than buying similar properties in Kuala Lumpur or Penang. But rental income can still be strong. This makes Johor Bahru attractive for first-time investors.

Top 5 Johor Bahru Property Hotspots for the Best ROI

1. Iskandar Puteri (Nusajaya)

Iskandar Puteri is one of the most modern and well-planned areas in Johor Bahru. It has international schools, universities, hospitals, entertainment venues, and lifestyle attractions, making it a strong Johor Bahru property hotspot.

Why Investors Like It

• Home to EduCity and many universities
• Large expat and student population
• Popular areas like Puteri Harbour, Eco Galleria and Sunway Big Box
• Medini area attracts foreign investment

ROI

• Rental yield: 4%–6%
• Stable demand from students and professionals
• Long-term growth expected

2. Johor Bahru City Centre (JBCC)

Johor Bahru City Centre is the main gateway to Singapore. With the RTS Link opening soon, this area is expected to become one of the busiest and most valuable parts of the Johor Bahru property market.

Why Investors Like It

• Next to the RTS Link Bukit Chagar Station
• Walking distance to City Square, JB Sentral and Komtar JBCC
• Popular with Singaporean commuters
• Part of the IIBD redevelopment

ROI

• Rental yield: 5%–7%
• Strong capital appreciation expected
• High rental demand due to cross-border workers

3. Tebrau / Mount Austin

Mount Austin is a lively area known for its café scene, restaurants, entertainment outlets, gyms and retail zones. It attracts young tenants, students, and working adults, making it a top Johor Bahru property hotspot for rental income.

Why Investors Like It

• Strong food and entertainment scene
• Close to IKEA Tebrau, Toppen Mall and AEON Tebrau
• Large number of students and young professionals
• High demand for small units and rooms

ROI

• Rental yield: 6%–8%
• One of the highest in the Johor Bahru property market
• Fast rental turnover

4. Bukit Indah / Horizon Hills / Skudai

This region is known for being clean, safe, peaceful and well-developed. It has good schools, shopping malls, parks and international communities. Many families prefer living here, making it a reliable option for JB property investment.

Why Investors Like It

• Mature neighbourhood
• Popular with family tenants
• Close to the Second Link Highway
• Stable demand for terrace houses and apartments

ROI

• Rental yield: 4%–5%
• Low vacancy rates
• Steady capital appreciation

5. Desa Tebrau / Setia Indah

Desa Tebrau and Setia Indah are affordable and fast-growing. The areas have strong accessibility and many daily facilities, which make them attractive for families and long-term tenants. This makes them good entry-level Johor Bahru property hotspots.

Why Investors Like It

• Affordable entry price
• Close to commercial areas and medical centres
• Easy access to Pasir Gudang Highway
• Good for family tenants

ROI

• Rental yield: 4%–6%
• Stable long-term demand
• Good appreciation over time

Johor Bahru Property Market Outlook 2025–2030

The outlook for the Johor Bahru property market remains positive. Key reasons include the RTS Link impact, continuous industrial expansion, increasing interest from Singaporeans, and a strong rental market in areas like Iskandar Puteri, Mount Austin and JB City Centre.

Which Johor Bahru Property Hotspot Should You Choose?

If you want the highest rental yield:

• Mount Austin
• Johor Bahru City Centre

If you want strong capital appreciation:

• Johor Bahru City Centre
• Iskandar Puteri

If you want stable long-term tenants:

• Bukit Indah / Skudai
• Desa Tebrau / Setia Indah

All five hotspots offer strong potential and are considered some of the best ROI Johor Bahru areas for both new and experienced property investors.