Johor Bahru Urbanization and Demographic

Over the last two decades, Malaysia had experienced a steady economic growth. The rapid growth in Malaysia economy has been a mainly driving force from a rapid increase in many economy activities and industries such as in manufacturing, finance, communication and so on which in turn has influenced the increasing of family income. Part of the growth also was also supported by the results of the many projects proposed by the government which has give positive impact on construction and trade activities, in spite of the moderate growth of the development environment. A demographic trend is one of the factors that contribute in building the better economy life for the country development and improve the social needs for the people. According to the total demographic estimated of Malaysia and Johor Bahru in various years, it shows the increasing number of employment, population, household income and size, education level and age structure. This will lead to increasing of the potential demand to the place of living.

Referring to Malaysian young age profile where 60% of the total population is below the age of 30, while the average household size is still large compared to 4.3 persons per household; it shows a good potential of housing growth in the near future. However, fertility rates in Malaysia have reduced from 6.9 births per woman in the late 1950’s to approximately 2.6 today, and has been forecasted to continue falling. This suggests that Malaysia will experience an ageing population trend, notwithstanding at a later stage than other countries like Western European region. Ageing population trend would give a long term effect to the real estate product and this implications of population ageing need a seek country specific solutions to address the rapidly graying population. As the population matures, it could drive increasing in household formation towards leading to the strong property demand growth especially in urban area. Moreover, with the continued population growth, expanding urban areas, growth in household income and declining household sizes will also factors that contributing to housing demand in the short to medium term in Malaysia.

Malaysia’s urban population has expanded significantly in the last fifty years, from 20.4% in 1950 to more than 63% in 2006. The United Nations anticipates that this trend will continue and by the year of 2030, 77% of Malaysia’s population will live in urban areas. The high population and density of urban areas in Malaysia are the Federal Territory of Kuala Lumpur, Selangor, Penang and Johor Bahru. It is very important to study the demographic trend in Johor Bahru due to fast growing in socio demographic as well as its economy activities with development of corridor in south region. With improvements in the modern communication and provision of infrastructure, it is very likely many more localities in the southern corridor will also develop into centers of employment and industrialization in the years ahead.

Higher levels of urbanizations and the rapid pace of industrialization in Johor Bahru generally will give rise demand of housing and indirectly raise problems of affordable housing needs.  By providing better facilities and accommodation to society, hopefully will influencing the prospects buyers to the region development. In addition, with the relocation of federal government administrative functions to IDR (Iskandar Development Region), it will enhance the quality of living within vicinity and encourage better investment to the residential property in Johor Bahru.