Significant drop in Johor property overhang

The introduction of the Johor-Singapore Special Economic Zone (JS-SEZ) has helped reduce property overhang in the state, says Datuk Mohd Jafni Md Shukor.

The state housing and local government committee chairman said that demand for serviced apartments is on the rise and expected to continue growing.

He said there are 27,688 such apartments under development in Johor, with another 24,592 units awaiting planning permission from local councils.

“Between 2022 and 2024, Johor recorded over 15% growth in overall property sales, including those affected by property overhang. This includes serviced apartments priced at RM500,000 and above.“As of last December, there are 102,438 serviced apartment units in the state, with only 11,810 remaining unsold.

“The number of unsold properties in Johor has continued to decline following the launch of JS-SEZ by Prime Minister Datuk Seri Anwar Ibrahim and his Singapore counterpart Lawrence Wong last month,” he added.

Mohd Jafni, who is also the Bukit Permai assemblyman, said this after officiating the back-to-school aid programme at Dewan Raya Putra in Bandar Putra here yesterday.

He said 90% of the overhang properties in Johor involve serviced apartments priced at RM500,000 and above, while the other 10% consist of single-storey and double-storey landed properties, including strata and bungalow units that have already been sold.

“Some 90% of serviced apartments priced at RM500,000 and below have been sold, while demand for those priced above this threshold is also increasing,” he revealed.