Are Johor Houses Worth Investing In?
Source: NAPIC
According to the latest Property Market Report 1H 2019 published by the National Property Information Centre (NAPIC) the state of Johor recorded the highest residential overhang at 6,195 units or 18.89% of nationwide numbers. At the same time, it also noted that the overhang growth is slowing down, owing to less aggressive launches and moderate buying.
The question that remains on house buyers’ minds is whether new houses for sale in Johor Bahru are worth investing?
Well if you look at some of the news you will see that there are still buying interest in Peninsular Malaysia’s southern-most state. A South China Morning Post article published in June 2019 stated that Hong Kong investors were looking at Malaysian property as a second home for retirement.
Real estate research and investment consultancy firm Alpha Marketing has written about the growing communities of expatriate populations from China, South Korea and Japan residing in properties in Iskandar Malaysia along with key suburbs such as Mount Austin, Taman Molek, Bukit Indah, Nusa Bestari, and Puteri Harbour seeing strong expatriate population growth from these Asian countries. It continues that these expatriates looking to “capitalize on the lower cost of living, clean environment, close proximity to Singapore, and quality education choices through international schools for their children.”
Furthermore, average residential housing prices in the state are amongst the least costly when compared with other states like Kuala Lumpur, Selangor and Penang. Residential transactions are also among the highest in Johor (6,793), second to Selangor (11,160).
Source: NAPIC
All these points to the fact that there are still purchasing demand for new houses for sale in the state and its capital Johor Bahru. The trick is then to choose a property wisely, ensuring that it is built by an established developer and to focus on meeting the needs of the growing expat community who will spur demand.
Photo by wxshutterbug
Sources:
http://napic.jpph.gov.my/portal
https://alphamarketingsg.com/good-bye-or-good-buy-iskandar-malaysias-property-market-in-2019/
