Johor Bahru's condo rental market operates on different rules than KL or Penang. Proximity to Singapore drives demand in some areas. Oversupply crushes yields in others. The difference between a 5% gross yield and a 2% gross yield in JB often comes down to which side of a highway your condo sits on.
This guide breaks down actual rental prices by area, explains what tenants expect, and shows landlords how to position their JB condos for maximum occupancy and income.
Condo Rental Prices by Area
JB's rental market is hyper-local. A condo in Danga Bay commands double the rent of a similar-sized unit in Masai, despite being 20 minutes apart. Here are current market rates as of early 2026, based on listings on iProperty, PropertyGuru, and Mudah.
| Area | Furnished (RM/month) | Unfurnished (RM/month) | Typical Size (sq ft) | Tenant Profile |
|---|---|---|---|---|
| Medini Iskandar | 1,200–1,800 | 900–1,300 | 600–1,200 | Expats, Singaporeans, young professionals |
| Tebrau | 1,000–1,600 | 700–1,100 | 800–1,200 | Local professionals, families |
| Mount Austin | 800–1,400 | 600–1,000 | 700–1,100 | Students, young couples, local workers |
| Danga Bay | 1,500–2,500 | 1,100–1,800 | 900–1,500 | Expats, Singaporean commuters, professionals |
| Permas Jaya | 900–1,400 | 650–1,000 | 800–1,200 | Local families, teachers, mid-level professionals |
Medini Iskandar — RM1,200-1,800
Medini sits within the Iskandar Malaysia development zone. Projects like Encorp Strand, Afiniti Residences, and D'Pristine attract tenants working in the Medini business district or commuting to Singapore. The RTS Link station at Bukit Chagar (expected operational late 2026/2027) will cut Singapore commute times significantly, which is already influencing rental demand in the corridor.
The challenge: oversupply. Medini has thousands of completed units, many owned by investors who bought off-plan during the Iskandar hype of 2012-2016. Competition is fierce. To command RM1,500+/month, your unit needs to be fully furnished with quality fittings, not developer-standard basics.
Tebrau — RM1,000-1,600
Tebrau is JB's established commercial corridor. Condos along Jalan Tebrau and around AEON Tebrau City benefit from mature amenities — hospitals (Columbia Asia, KPJ Johor), shopping malls, and easy access to the North-South Expressway. Projects like The Astaka (luxury), Sky Suites, and Palazio command the higher end.
Rental demand is steady from local professionals. This is not an expat-heavy area — pricing power comes from convenience and accessibility rather than Singapore proximity.
Mount Austin — RM800-1,400
Mount Austin is JB's affordable condo belt. Projects like Parc Regency, D'Ambience, and Austin Heights condos serve a price-sensitive market. Tenants are typically students attending nearby institutions, young couples starting out, or single professionals on modest salaries.
At RM800-1,000/month for a furnished 2-bedroom, the absolute rental income is low. But purchase prices are also low — RM200K-350K for a 800-1,000 sq ft unit. This means gross yields of 4.5-5.5% are achievable, which is better than many "premium" JB condos selling at RM500K+ but renting for only RM1,500.
Danga Bay — RM1,500-2,500
Danga Bay is JB's waterfront premium segment. Country Garden's Danga Bay project dominates supply, alongside Bay Suites and other developments. Waterfront views, proximity to CIQ (the Malaysia-Singapore customs checkpoint), and lifestyle amenities justify the price premium.
The tenant base skews heavily towards Singaporeans and expats. A well-fitted 3-bedroom unit with sea views can command RM2,200-2,500/month. But vacancy risk is real — if the Singapore commuter market softens or if the RTS Link route doesn't pass nearby, these units can sit empty for months.
Permas Jaya — RM900-1,400
Permas Jaya is a mature township east of JB city centre. It has its own commercial centre, schools (including international schools like Fairview and R.E.A.L), and healthcare facilities. Condos like Permas Ville and Sri Permas attract local families who want a self-contained township lifestyle.
Rental demand is consistent but not exciting. Yields hover around 4-5%. The area's strength is low vacancy — tenants tend to stay for 2-3 year tenancy cycles.
Furnished vs Unfurnished — The Rental Premium
In JB, the furnished premium is significant. Furnished units rent for 20-40% more than bare equivalents. But not all furnishing is equal.
Partially furnished (developer standard): Built-in kitchen cabinets, hob, hood, and possibly air conditioning in the master bedroom. This is the bare minimum tenants expect. Renting a truly unfurnished unit — no kitchen fittings, no aircon — is extremely difficult in JB's competitive market.
Fully furnished: All appliances (washer, fridge, microwave, water heater), air conditioning in all bedrooms, bed frames and mattresses, sofa set, dining table, curtains. This is what Singaporean and expat tenants expect. They are not shipping furniture across the Causeway.
Premium furnished: Everything above plus smart locks, high-quality mattresses, built-in wardrobe systems, TV, and internet router. This tier commands the top rents and attracts tenants willing to pay for convenience.
Cost to furnish a JB condo:
| Item | Budget (RM) | Mid-range (RM) |
|---|---|---|
| 3x aircon units (installed) | 3,500–4,500 | 5,000–7,000 |
| Washer | 800–1,200 | 1,500–2,500 |
| Fridge | 1,000–1,500 | 2,000–3,500 |
| Beds + mattresses (2-3 rooms) | 2,000–3,500 | 4,000–7,000 |
| Sofa set | 1,000–2,000 | 3,000–5,000 |
| Dining table + chairs | 500–1,000 | 1,500–3,000 |
| Curtains/blinds | 500–1,000 | 1,500–3,000 |
| Kitchen appliances | 500–1,000 | 1,000–2,000 |
| Total | 9,800–15,700 | 19,500–33,000 |
For a RM300K condo generating RM300/month more in furnished premium, the RM12,000-15,000 furnishing cost pays back in 3-4 years. That is a reasonable return on the furnishing investment.
What's Typically Included in Rent
Understanding what JB tenants expect as part of the rental package avoids disputes and vacancy.
Always included in rent:
- Use of all built-in fixtures and fittings
- Access to condo facilities (pool, gym, parking — usually 1 car park lot)
- Maintenance fee coverage (landlord's responsibility under most agreements)
- Sinking fund contributions (landlord's responsibility)
Never included in rent:
- Electricity (TNB bill — tenant pays directly)
- Water (SAJ bill — tenant pays directly)
- Internet/WiFi (tenant sets up their own Unifi, Maxis, or Celcom line)
- Astro/cable TV
Sometimes negotiable:
- Second car park lot (RM50-150/month in JB)
- Cleaning service (occasionally included in premium furnished units)
- Additional storage space
Maintenance fees in JB condos typically run RM150-400/month depending on the development. Older projects with fewer facilities charge RM150-250. Newer projects with full facilities (infinity pool, sky lounge, co-working space) charge RM300-400. This cost is borne by the landlord and significantly impacts net yield.
Use the cashflow calculator to model your net yield after maintenance fees, loan repayment, and other costs.
See which properties hit your cashflow target — pre-screened with real yield data.
Get the Property Directory →Deposit Structure — The 2+1 Rule
The standard deposit structure for residential tenancies in Malaysia — including JB — is 2+1:
- 2 months' security deposit: Refundable at the end of tenancy if the unit is returned in good condition (fair wear and tear excepted). Held by the landlord.
- 1 month's utility deposit: Covers final utility bills. Also refundable after settlement of outstanding TNB and SAJ bills.
Total upfront for a tenant: First month's rent + 2 months' security deposit + 1 month's utility deposit = 4 months' rent equivalent.
For a RM1,500/month unit, that is RM6,000 on day one.
Some landlords in JB — particularly for premium Danga Bay and Medini units — charge 2.5+1 or even 3+1 for foreign tenants. This is negotiable. The Contracts Act 1950 does not cap security deposits for residential tenancies, though excessive deposits may deter tenants in a competitive market.
Stamp duty on tenancy agreements:
The tenant typically pays stamp duty on the tenancy agreement. Rates under the Stamp Act 1949:
| Tenancy Period | Stamp Duty Rate |
|---|---|
| Up to 1 year | RM1 per RM250 of annual rent |
| 1-3 years | RM2 per RM250 of annual rent |
| Above 3 years | RM4 per RM250 of annual rent |
For a 1-year tenancy at RM1,500/month (RM18,000 annual rent): stamp duty = RM18,000 ÷ 250 × 1 = RM72.
Read more about stamp duty on tenancy agreements for full calculations.
The Tenancy Agreement Process
Here is the standard process for renting out a JB condo, step by step.
Step 1: Set the Right Price
Check comparable listings on PropertyGuru, iProperty, and Mudah for your specific project and unit type. Do not rely on your agent's optimistic valuation. Filter for recently rented transactions, not asking prices.
Step 2: Prepare the Unit
Ensure all fixtures work. Fix leaks, replace broken switches, service air conditioning units. For furnished units, deep clean everything. First impressions determine whether a viewing converts to an offer.
Step 3: List and Market
List on PropertyGuru, iProperty, Mudah, and Facebook Marketplace (JB property groups are very active). Include floor plan, actual photos (not renders), and state the furnishing level clearly. If your unit has a good view, photograph it.
Step 4: Screen Tenants
Request IC/passport copy, employment letter, and latest 3 months' payslips. A good rule: monthly rent should not exceed 1/3 of the tenant's gross monthly income. For Singaporean tenants, request recent CPF statements or employment pass details.
Learn more about tenant screening best practices.
Step 5: Draft the Tenancy Agreement
Engage a lawyer or use a standard tenancy agreement template. Key clauses:
- Tenancy period: Typically 1 year with option to renew
- Rental amount and payment date: Specify bank account for transfer (most tenants pay via Maybank, CIMB, or Public Bank online transfer)
- Deposit terms: Amount, conditions for refund, timeline for return (typically 30 days after tenancy ends and unit inspection)
- Maintenance and repair responsibilities: Minor repairs under RM150 — tenant. Major repairs — landlord.
- Permitted use: Residential only. Prohibit subletting unless agreed.
- Termination clause: Standard is 2 months' written notice from either party after the initial fixed term.
Step 6: Stamp the Agreement
Both parties sign. The tenant (or agreed party) takes the agreement to LHDN for e-stamping. An unstamped tenancy agreement is not admissible as evidence in Malaysian courts.
Step 7: Hand Over
Conduct a joint inventory check. Photograph every room, every appliance, every existing mark on walls. Both parties sign the inventory list. Hand over keys, access cards, and remote controls. Provide utility account numbers for the tenant to register.
Tips for Landlords — Maximizing Rental Income in JB
1. Target the Singapore Commuter Market
Singaporeans working in Singapore but living in JB represent the highest-paying tenant segment. They want:
- Furnished units (they are not moving furniture across the border)
- Proximity to CIQ or the upcoming RTS Link station
- Reliable internet (Unifi 300Mbps minimum)
- Security features (gated, guarded, CCTV)
Price your unit for this market, and you command 15-25% premium over local tenant rates.
2. Install Smart Locks
A RM300-500 smart lock (Samsung, Yale, or Igloohome) eliminates key management headaches. For landlords managing units remotely — especially from Singapore — the ability to generate temporary access codes for viewings and maintenance without physically being at the unit is invaluable.
3. Offer Flexible Lease Terms
In JB's competitive market, offering a 6-month initial term (with renewal option) instead of insisting on 12 months attracts tenants who are uncertain about their JB stay duration. Some income for 6 months beats zero income for 3 months while you wait for a 12-month tenant.
4. Maintain Air Conditioning Religiously
JB is hot. A tenant whose aircon breaks in April (peak heat) will not renew. Service all aircon units every 6 months. Budget RM60-80 per unit per service. Three units = RM360-480/year. This is the single cheapest investment in tenant retention.
5. Price Below Market for First Tenancy
If your unit is newly completed and has zero rental track record, price 5-10% below comparable furnished units to fill it quickly. A RM1,400 unit priced at RM1,300 for the first year costs you RM1,200 in annual income but avoids 2-3 months of vacancy (RM2,800-4,200 in lost rent). After the first year, raise to market rate at renewal.
6. Use a Property Management Company
If you live outside JB — especially if you are in Singapore, KL, or overseas — a property management company handles tenant sourcing, rent collection, maintenance coordination, and unit inspections. Fees are typically 6-8% of monthly rent in JB. For a RM1,500/month unit, that is RM90-120/month for hands-free management.
7. Know Your Tax Obligations
Rental income from your JB condo is taxable. Malaysian tax residents pay progressive rates from 0-30%. Non-residents pay a flat 30%. But you can deduct expenses: mortgage interest, maintenance fees, assessment tax, quit rent, insurance, repairs, and property management fees.
Read the full breakdown in our rental income tax guide and tax deductions for rental property.
The Oversupply Reality
JB has a well-documented oversupply problem, particularly in Iskandar Malaysia. NAPIC data shows Johor consistently leads states in unsold residential units. This is not a secret — it is the defining feature of the JB market.
What this means for landlords:
- Pricing power is limited. Tenants have options. If your unit is overpriced by RM200/month, they will rent the identical unit two floors down.
- Furnishing quality matters more. When supply exceeds demand, differentiation comes from unit condition and furnishing, not location (since there are competing units in every area).
- Vacancy costs are real. Budget for 1-2 months vacancy per year in your cashflow projections. If you model zero vacancy in JB, your projections are fiction.
Despite oversupply, specific micro-markets within JB perform well. Units near established commercial centres (Tebrau City, Mount Austin), near the CIQ, or in mature townships with schools and healthcare facilities maintain occupancy rates above 85%.
JB Rental Yield — What to Realistically Expect
Based on current purchase prices and rental rates:
| Area | Purchase Price (RM) | Monthly Rent (RM) | Gross Yield |
|---|---|---|---|
| Medini | 280K–450K | 1,200–1,800 | 4.0–5.1% |
| Tebrau | 300K–500K | 1,000–1,600 | 3.8–4.8% |
| Mount Austin | 200K–350K | 800–1,400 | 4.8–5.6% |
| Danga Bay | 400K–700K | 1,500–2,500 | 4.3–5.0% |
| Permas Jaya | 250K–400K | 900–1,400 | 4.2–5.0% |
Mount Austin delivers the best gross yields because entry prices are lowest. Danga Bay offers the highest absolute rental but the capital outlay is also the highest. For cashflow-focused investors, the average rental yield by state data shows Johor sitting in the middle of the national range — not the best, not the worst.
To convert gross yield to net cashflow, deduct: mortgage repayment (if financed), maintenance fees, sinking fund, assessment tax, quit rent, insurance, vacancy allowance, and income tax. Most JB condos financed at 70-80% LTV with current rates (BLR-linked at ~4.0-4.5%) will be cashflow-neutral to slightly positive at gross yields above 5%.
Run your specific numbers through the cashflow calculator to see whether a JB condo makes sense for your situation.
Bottom Line
JB's condo rental market rewards discipline over optimism. Choose the right area, furnish to a standard that justifies the rent you want, price competitively from day one, and budget for vacancy. The Singapore proximity factor is real but not a guarantee — it benefits specific locations (CIQ corridor, RTS Link-adjacent) far more than others.
For landlords willing to manage the oversupply reality, JB still offers yields that beat fixed deposit rates and provide exposure to the Singapore-JB economic corridor that will only strengthen as the RTS Link comes online.