Johor: Residential property transaction trends in 2021
Transaction volume in the state of Johor fell by 21% in 2020 amid the first wave of the pandemic, but rose last year by 28% to slightly surpass 2019 figures.
Median transacted prices fell in 2020 to RM340,000 from RM350,000 pre-pandemic, but increased to RM380,000 last year.
62% of the residential property transactions in the state were made by first-home buyers while the remaining 38% were made by investors.
Investors are categorised as those who own more than one property however the data is unable to decipher the intentions behind their property purchase, be it for own-stay or investment.
78% of recorded residential transactions were in the secondary market while 22% were new developments.
As part of Johor’s southwest growth corridor, Skudai is the once again leads the list of Johor’s most transacted areas. The developments of Tanjung Pelepas Port and Iskander Puteri likely contribute to the town’s consistent top ranking.
The volume of transactions for residential properties in Skudai suffered a decline of 28.67% in 2020, but median house prices fell by only 2.33% compared with 2019.
Last year, however, transaction volume picked up by 17.66% and median transacted prices grew 10.72% to RM431,820 compared with 2020’s figures.
Coming in second, is the prime location of Tebrau which benefits from close proximity to the Johor Bahru Customs, Immigration and Quarantine Complex.
The area has various upcoming developments and shopping complexes but is most known for tourist attractions such as Legoland and Hello Kitty Town.
Tebrau edged out over Johor Bahru to claim the second spot in 2021 as the volume of transactions grew by a whopping 45.83% – the biggest growth among the state’s top five areas.
This is despite the city having recorded a fall in transaction volume by 32.12% in 2020 when the pandemic hit local shores.
Nevertheless, median transacted prices only grew marginally from RM520,000 in 2020 to RM530,000 last year.
Despite Johor Bahru being the central business district and capital city of the state, it fell last year in the list to third spot.
Johor Bahru’s direct land link to Singapore through the causeway is the main economic driver for the city and is also strategically adjacent to the administrative capital of Iskandar Puteri, as well as Pasir Gudang.
The first wave of the pandemic had a negative impact on properties here, as sales dropped 28.47% compared with 2019.
However, transaction volume grew last year by 28.94%, recording the biggest change after Tebrau. Median transacted prices grew marginally from RM370,000 in 2020 to RM380,000 in 2021 – still short of the RM400,000 reached in 2019.
Next on the list is Kulai, the capital of the Kulaijaya district, with palm oil plantations and rubber estates dotting the landscape alongside factories and housing estates.
It is also growing as a town for construction, education and business, all of which have resulted in more job opportunities.
Median prices have increased by 12.43% to RM380,000 last year, while transaction volume grew 22.27%.
In 2020, transaction volume only fell by 13.87% compared with the year prior, while a decline in median house prices was negligible at 3.43%.
Last but not least, Pasir Gudang claims the fifth spot for most residential transactions last year. Pasir Gudang is the main hub for logistics, shipbuilding, and petrochemical activities in the state.
It was the only area among Johor’s top transacted areas to record positive growth (7.25%) in transaction volume during the first wave of the pandemic in 2020, while other areas recorded double-digit reductions.
This was likely attributed to a booming logistics industry amid the movement control order.
However, this growth appears to have reversed as transactions in Pasir Gudang recorded negative trends (-5.8%) last year when compared to the year before.
Nevertheless, median transacted prices increased by 11.11% to RM300,000 compared with the year before.
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