How have median asking prices for Johor Baru service residences changed?

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Median Asking Prices for Johor Baru Service Residences Have Increased Significantly

Johor Baru's service residences have experienced a substantial year-on-year increase in median asking prices, with an overall growth of 20 per cent. This upward trend is particularly pronounced in smaller unit sizes, indicating a shift in market preference driven by factors such as improved connectivity and accessibility.
Smaller Units Show Strong Price Appreciation

The data highlights robust price growth across various smaller unit categories. Specifically, service residences measuring between 501 and 750 square feet (sq ft) saw the most significant price jump, recording a 27 per cent increase. Units sized between 751 and 1,000 sq ft also demonstrated strong performance with an 18 per cent price growth, followed by units between 1,001 and 1,250 sq ft, which experienced a 15 per cent price increase.
Connectivity as a Driving Factor

This notable appreciation in smaller units suggests that the enhanced connectivity offered by infrastructure projects, such as the Rapid Transit System (RTS) Link, is a key driver of property value. The advantage of seamless travel and proximity to transportation hubs appears to be outweighing the desire for larger living spaces for many buyers. This trend could be attributed to a lower entry cost for smaller units and their strategic location relative to major transport modes.
Overall Market Improvement and Rental Yields

The positive movement in median asking prices for service residences is part of a broader revitalisation of Johor's property market. This growth is supported by a decrease in unsold property units in Johor, which fell by 20 per cent from 5,258 in 2022 to 4,228 units by 2023. Furthermore, Johor's average gross rental yield stands at 6.25 per cent, surpassing the national average of 5.16 per cent as of the first quarter of 2024, indicating strong returns for property investors in the region.

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How have median asking prices for Johor Baru service residences changed?

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