Impact of Higher Education Institutions (HEIS) as neighbourhood factor on housing price in Johor Bahru, Johor, Malaysia

Higher Education Institutions (HEIs) play a crucial role in shaping urban development and economic growth. This study examines the impact of public and private HEIs—namely, Universiti Teknologi Malaysia (UTM) and Southern University College (SUC)—on housing prices in Johor Bahru, Malaysia. Utilizing Geographic Information System (GIS) for spatial analysis and Multiple Regression Analysis (MRA) via SPSS, the research investigates the relationship between HEIs and housing prices, considering factors such as demographic trends, infrastructure, and proximity to HEIs. Using a dataset of 171 housing transactions, the study reveals that proximity to the SUC hub significantly influences housing prices. The mean transaction price is RM630,994.15 (SD = RM323,527.82), with an average distance of 2.43 km to the SUC hub. The analysis shows that as the distance from SUC increases, transaction prices decrease, with an R-value of 0.875 and an R-square of 76.60%, indicating that distance explains a substantial portion of price variation. On average, each additional kilometer from the SUC hub results in a price reduction of RM49,773.80. Conversely, UTM’s impact on surrounding housing prices is weaker, with an R-square value of only 0.20%. This difference is attributed to UTM’s extensive on-campus student accommodation, which reduces demand for nearby private housing. In contrast, SUC’s limited student housing creates higher rental demand in its vicinity, driving up property prices and investment interest. These findings provide valuable insights for urban planners and real estate stakeholders, highlighting the varying effects of public and private HEIs on local housing markets. The study underscores the importance of accommodation policies, infrastructure, and market dynamics in shaping real estate trends near educational institutions.