Rental Returns in Johor Bahru: Which Areas Are Performing Best?

Rental Returns in Johor Bahru: Which Areas Are Performing Best?

πŸ“˜ Introduction

Johor Bahru (JB) has become a magnet for property investors, especially with its proximity to Singapore, cost-effective living, and infrastructure growth like the RTS Link.

But which areas in JB offer the highest rental returns?
Whether you're a local investor, a foreigner under MM2H, or a Singaporean seeking ROI, this guide highlights where your money can work hardest for you.


🏒 1. Medini Iskandar – The Investment Darling

Medini, located within the Iskandar Puteri zone, is fast becoming a top rental hotspot due to:

  • 🎒 Proximity to Legoland, Gleneagles Hospital, EduCity

  • 🏒 Modern condos with dual-key and Airbnb-friendly layouts

  • πŸͺͺ No RPGT and no minimum price threshold for foreigners

πŸ“Š Rental ROI Range: 5.5% – 8.5%
πŸ’‘ Popular among: MM2H retirees, weekend home seekers, parents with kids in international schools

πŸ–ΌοΈ Image Suggestion: Aerial view of Medini skyline with Legoland and skyscrapers
Alt text: “Medini Iskandar modern development near Legoland”


πŸŒ† 2. Johor Bahru City Center (CIQ) – For Singaporean Tenants

This zone, especially around R&F Princess Cove, Danga Bay, and Stulang Laut, draws cross-border tenants due to:

  • πŸš‡ RTS Link (under construction), JB Sentral, City Square Mall

  • 🏬 Walking distance to SG customs

  • πŸŒ‡ Sea-facing units with luxury appeal

πŸ“Š Rental ROI Range: 5.0% – 7.5%
πŸ’‘ Best for: High-income tenants working in Singapore but living in JB

πŸ–ΌοΈ Image Suggestion: Night view of R&F and Johor Bahru skyline from across the Causeway
Alt text: “CIQ Johor Bahru condo skyline facing Singapore”


πŸ™οΈ 3. Mount Austin – The Young Working Crowd’s Choice

Mount Austin is one of JB’s most vibrant areas, famous for:

  • πŸ›οΈ Lifestyle: Cafes, bars, Austin Heights Waterpark

  • 🏫 Austin Heights schools

  • 🏑 Affordable 2–3 bedroom units for long-term stay

πŸ“Š Rental ROI Range: 4.8% – 6.5%
πŸ’‘ Ideal for: Local professionals, small families, students

πŸ–ΌοΈ Image Suggestion: Street shot of Mount Austin’s food strip or park area
Alt text: “Mount Austin lifestyle district for young tenants”


🌿 4. Taman Molek & Permas Jaya – The Quiet Stability

These mature neighborhoods may not be flashy but are known for:

  • 🏦 Proximity to banks, offices, and golf courses

  • πŸ§‘‍πŸ’Ό Corporate expats and long-stay tenants

  • 🏘️ Balanced supply and demand

πŸ“Š Rental ROI Range: 4.2% – 5.5%
πŸ’‘ Attracts: Long-term tenants who value convenience and peace

πŸ–ΌοΈ Image Suggestion: Calm neighborhood shot with tree-lined streets and low-rise condos
Alt text: “Permas Jaya & Molek mature residential areas”


πŸ“ 5. Tebrau & Desa Tebrau – Affordable with Volume

If you're seeking volume-based rental strategy:

  • πŸ›’ Near AEON Tebrau, IKEA, and Toppen Mall

  • 🚌 Good highway access and public transport

  • 🏠 Mix of landed and high-rise units

πŸ“Š Rental ROI Range: 4.5% – 6.0%
πŸ’‘ Great for: Entry-level investors, young couples

πŸ–ΌοΈ Image Suggestion: Toppen Mall aerial shot or inside AEON Tebrau
Alt text: “Desa Tebrau near shopping and highway access”


πŸ“Š 6. Rental ROI Quick Comparison Table

Area Type of Tenants Average Monthly Rent Average Price (RM) ROI Range
Medini Expats, Families, MM2H RM2,000 – RM3,800 RM400k – RM700k 5.5% – 8.5%
CIQ/Danga Bay SG Commuters, Investors RM2,800 – RM4,500 RM600k – RM1mil 5.0% – 7.5%
Mount Austin Young locals, students RM1,500 – RM2,500 RM300k – RM500k 4.8% – 6.5%
Taman Molek/Permas Corporate expats RM1,800 – RM2,800 RM400k – RM600k 4.2% – 5.5%
Tebrau/Desa Tebrau Budget tenants RM1,200 – RM2,000 RM300k – RM450k 4.5% – 6.0%

🧠 Conclusion: Diversify with Strategy

Johor Bahru offers diverse rental markets that suit various investment profiles. Whether you're seeking:

  • πŸ” High turnover, short-stay Airbnb in Medini

  • 🏒 Premium long-stay rental in CIQ

  • 🏑 Budget-friendly long-term tenants in Mount Austin or Tebrau

...JB has an option for you.

 

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