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

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

📘 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

  • 🪪 No RPGT and no minimum price threshold for foreigners

📊 Rental ROI Range: 5.5% – 8.5%
💡 Popular among: MM2H retirees, weekend home seekers, parents with kids in international schools

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


🌆 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:

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

  • 🏬 Walking distance to SG customs

  • 🌇 Sea-facing units with luxury appeal

📊 Rental ROI Range: 5.0% – 7.5%
💡 Best for: High-income tenants working in Singapore but living in JB

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


🏙️ 3. Mount Austin – The Young Working Crowd’s Choice

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

  • 🛍️ Lifestyle: Cafes, bars, Austin Heights Waterpark

  • 🏫 Austin Heights schools

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

📊 Rental ROI Range: 4.8% – 6.5%
💡 Ideal for: Local professionals, small families, students

🖼️ 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

  • 🧑‍💼 Corporate expats and long-stay tenants

  • 🏘️ Balanced supply and demand

📊 Rental ROI Range: 4.2% – 5.5%
💡 Attracts: Long-term tenants who value convenience and peace

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


📍 5. Tebrau & Desa Tebrau – Affordable with Volume

If you're seeking volume-based rental strategy:

  • 🛒 Near AEON Tebrau, IKEA, and Toppen Mall

  • 🚌 Good highway access and public transport

  • 🏠 Mix of landed and high-rise units

📊 Rental ROI Range: 4.5% – 6.0%
💡 Great for: Entry-level investors, young couples

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


📊 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:

  • 🔁 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.