Johor Bahru Property Boom

However, while these foreign buyers reap the benefits of Johor’s booming property market, local residents are increasingly sidelined. The influx of foreign capital has drastically inflated property prices, pushing them far beyond the reach of most Malaysians. Over the past decade, median household incomes in Johor have not kept pace with the sharp increase in property prices. According to recent data, the average household income in Johor is approximately RM7,410 per month (2022), which is far below the income levels required to comfortably afford properties now priced at RM500,000 and above. Meanwhile, Singaporeans earning in SGD are able to outbid locals easily, further exacerbating the problem.

The most glaring example of foreign dominance is Forest City, a $100 billion mega-development originally aimed at foreign buyers, particularly Chinese nationals. Although Forest City promised to be a futuristic metropolis, the reality has fallen short. The project has become a ghost town, with vast stretches of empty high-rises and a significant disconnect between the development's grandiose vision and the needs of local Malaysians. Despite its struggles, Forest City highlights a trend where developments are increasingly designed to cater to foreign buyers rather than the people who live and work in Johor.

This housing crisis is more than just an issue of affordability; it is one of displacement. Many locals, especially young families, have been forced to move to rural areas further away from the city center, where prices are marginally lower. This relocation often comes at the cost of longer commutes, limited access to amenities, and fewer job opportunities. It creates a divide where urban areas like Johor Bahru become playgrounds for the wealthy, while the less fortunate are pushed to the periphery.

Additionally, as foreign investors purchase properties as investments or vacation homes, many units remain unoccupied. This phenomenon, commonly referred to as “property hoarding,” reduces the housing supply for locals even further. A recent report highlighted that over 50% of luxury condominiums in developments like Country Garden Danga Bay are unoccupied. These empty units are a stark reminder that the property boom has done little to improve the housing situation for everyday Malaysians.

However, the benefits of these projects are unevenly distributed. While foreign buyers and affluent Malaysians stand to gain from rising property values, the working-class residents of Johor may find themselves priced out of their own neighborhoods. The RTS is being marketed as a selling point for high-end developments, effectively sidelining the needs of locals who rely on affordable and accessible housing.

Furthermore, the RTS may exacerbate income inequality in Johor Bahru. As Singaporeans move in and bring their higher purchasing power with them, local businesses and services may adjust their prices to cater to this wealthier demographic. This could lead to higher costs of living for locals, compounding the financial pressures they already face due to rising property prices.

Additionally, the lack of affordable housing initiatives has left many Johoreans without viable alternatives. Government-subsidized housing schemes are often plagued by bureaucratic inefficiencies, leaving those who need assistance most struggling to secure homes. Even when affordable housing is available, its location is often far from urban centers, making it a less attractive option for working families.

Moreover, the prioritization of foreign investment over local needs undermines the long-term sustainability of Johor Bahru’s growth. A city that caters primarily to foreigners risks losing its identity and alienating its residents. This could have serious consequences for Johor’s social fabric, as discontent among locals grows in response to their diminishing access to housing and economic opportunities.

Affordable housing initiatives must also be expanded and improved. The government should invest in building more subsidized housing in urban areas, ensuring that working-class families have access to the amenities and opportunities they need. Furthermore, local authorities must enforce policies that require developers to allocate a certain percentage of their projects for affordable housing.

Johor Bahru’s property boom is a glaring example of how unchecked foreign investment can exacerbate inequality and displace local communities. While economic growth is important, it must not come at the expense of the very people who call Johor Bahru home. The government and developers must shift their focus toward creating a city that is inclusive, equitable, and sustainable—one that prioritizes the well-being of its residents over the profits of foreign investors.