Generally, housings within the same area tend to share similar structural and locational characteristics as well as having the same homebuyers’ preferences. This information provides insight on the existence of housing submarkets. Thus, this study aims to identify the existence of housing submarkets in Johor Bahru and Kulai, Malaysia through the principal component analysis and cluster analysis. A total of 29 housing attributes were involved in this study. The results from the principal component analysis have successfully identified four principal components that represent the basic facility, main infrastructure, less common facility and housing quality characteristics. On the other hand, the cluster analysis managed to identify the existence of four housing submarkets in Johor Bahru and Kulai, where three submarkets showed the characteristics of housing quality, whereas one submarket appeared to have the main infrastructure characteristics. The findings of this study provide valuable information on the existence of four housing submarkets in Johor Bahru and Kulai areas, which will benefit the city governments, real estate developers, mortgage lenders, non-profit organizations, as well as individual homeowners, in making critical choices and developing market-appropriate strategies.