Foreign investment and infrastructure development are driving up costs, leaving residents struggling to buy homes.

Property prices in Johor Bahru have surged dramatically, fuelled by foreign investments and the anticipated arrival of the Rapid Transit System (RTS) link to Singapore. This surge, particularly in areas near the RTS route, has raised alarms among local residents who worry they will be priced out of the property market.

Real estate experts reported a sharp increase in property transactions along the RTS corridor, boosted further by the creation of the Johor-Singapore Special Economic Zone. Last year, the volume of apartment sales in Johor Bahru rose by almost 25%, and sales of serviced apartments doubled.

Local resident Iza, interviewed by Channel 8 News, expressed frustration over the rising property costs. Initially aiming to purchase a landed property near Johor Bahru’s city centre, she has been forced to reconsider due to soaring prices. Now, she is considering smaller apartments in suburban areas or the possibility of renting.

“The influx of foreign buyers is driving up housing prices, especially near the Causeway,” Iza said. “It’s unacceptable that locals can no longer afford homes and are being pushed to rent from foreign landlords.”

Property consultants warn that this trend is likely to continue. Experts have pointed out that the cost of a single-storey house in the city has surpassed RM400,000, with lower-income residents facing tough decisions. “Housing prices will keep rising. People with lower incomes will have to move further out or settle for smaller homes,” one consultant explained.

In an effort to address these concerns, the Johor state government has announced measures to alleviate the housing pressure. Authorities have instructed developers to prioritise affordable housing for locals and are working to revitalise abandoned or incomplete projects in the city centre. The government aims to provide 60,000 affordable homes by 2026 to help mitigate the situation.

As the cost of housing continues to climb, Johor Bahru residents remain uncertain about their future prospects for homeownership. While government actions may ease some of the pressure, the impact of foreign investments and major infrastructure projects on the local housing market remains a major concern.