Investment Property In Johor: Top 2 Areas With Price Appreciation

Like all forms of investment, it is difficult to map out an accurate projection of the returns of a property investment.

The property market is heavily dependant on the economy, so a huge shake up like a pandemic is bound to leave its mark.

While the common perception is that asking prices are now lower than usual, and is thus a bad time to sell, Property Advisor’s database reveals that the median transaction prices actually vary from area to area.

Some investors and homeowners have been pleasantly surprised to find that the value of their properties have increased since the pandemic began, allowing them to benefit from the equity gain.

Interested? Then read on to find out 2 of the top areas in Johor which saw a positive growth in the 2020 median prices of property transactions!

Home to both the Pasir Gudang Industrial Park and Tanjung Langat Heavy Industrial Estate, Pasir Gudang is well-known as an industrial area.

With a focus on heavy industries such as transportation, logistics, shipbuilding and petrochemicals, this area has a constant demand in its rental market for its factory workers.

This makes it a good area to invest in, for those who are looking to make money by renting out their properties.

Breaking down the transactions according to buyer segment, it was revealed that sales in Pasir Gudang in 2020 were hugely dominated by investors, coming in at 92% of the overall transactions.

In fact, investor transactions in 2020 saw an increase of double the numbers from 2019, rising by 50.9%, as well as a significant increase in the median price of investor transactions by 25%.

First-time homebuyer (FTHB) transactions on the other hand, nosedived by 90.36%, while the median price fell by 9.12%.

Overall, the total transactions in Pasir Gudang dropped by 30.5%, while the median price increased by 11.11%.

Mersing is best known as the interchange point to the surrounding islands due to its passenger boat jetty.

Being close to the sea, it is also a good place to escape from life’s daily grind with a calming walk along the beach, ending with a good seafood meal.

Therefore, it is no surprise that the median price of transactions increased by 53.13% in 2020 compared to 2019 despite an overall transaction drop of 27.27%.

Investors remained confident in Mersing’s potential as it serves as a good place for a homestay or vacation home, with a small dip of 7.14% compared to the previous year.

They were also willing to spend more, which is reflected in the median price increase of 53.49% for investors.

FTHB transactions, on the other hand, decreased by 42.11%, while the median price fell by 35.71%. At closer inspection, investor transactions made up 54.17% of the total transactions carried out in 2020.

If you own a property in any of these areas, it could be good time to carry out a cash out refinancing if you are need of extra cash flow, whether it is for investing in more properties, or simply as emergency funds for rainy days.

It offers the same benefits as a standard refinancing option, including lower interest rates if applicable, with the cash out amount deposited directly into your bank account, leaving you free to use the funds as you wish!

You can get a free estimate by going to Property Advisor’s Refinance Calculator. Lastly, don’t forget to seek advice from your financial advisor before carrying out a refinancing!

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