Exploring the Future of Cross-Border Property Investment: Singapore and Johor Bahru
The property markets in Johor Bahru (JB) and Singapore have always been intertwined, mainly in cross-border living, investment, and opportunities. While Singapore's real estate market remains one of the most stable and sought-after in the world, Johor Bahru has emerged as an attractive alternative.
Current Status of Johor & Singapore Property Landscape
Johor’s property market is experiencing a revival, attracting local and international investors with new developments, improved infrastructure, and government initiatives. Demand is growing for affordable residential properties near the city center and integrated townships, offering accessibility and value.
Meanwhile, Singapore’s real estate market remains strong, driven by high demand and investment returns. However, rising prices and cooling measures have led some investors to explore Johor Bahru for more affordable options close to Singapore’s economic hub.
Some of the key factors behind the robust cross-border property transactions has been due to these developments
1. RTS Link
The Rapid Transit System (RTS) Link, scheduled for completion in 2026, is a game-changer. Connecting Johor Bahru to Singapore in just 5 minutes, this modern rail link reduces the hassle of daily commutes and creates seamless access to Singapore’s central business districts. It connects Johor via Woodlands crossing the Strait of Johor and consists of stations at Bukit Chagar station and Singapore terminal at Woodlands.
For property investors, the RTS Link translates to higher rental yields and demand for residential near the stations. It also opens the door for more Singaporeans to consider moving to Johor as a viable living option, allowing them to enjoy more spacious
2. Johor Singapore Economic Zone (JSEZ)
The Johor Singapore Economic Zone (JSEZ) aims to foster greater economic collaboration between the two regions. By encouraging joint ventures, trade, and industrial growth, the JSEZ is expected to create a ripple effect on Johor’s property market.
As businesses expand within the zone, the demand for commercial spaces, offices, and housing for professionals will grow, making JB an attractive destination for real estate developers and investors alike.
4. Forest City to thrive: Supportive Government Policy
Despite Forest City with its initial challenges, the project will expect a turnaround with the recent tax incentives offered by the government, announced this year.
On 20 September 2024, the Government elevated Forest City to Duty-Free Island status. and new tax incentives and investment schemes, underscores Malaysia’s commitment to attracting foreign investments, driving economic growth, and creating jobs.
As part of the Forest City Special Financial Zone (FCSFZ), it is set to become Malaysia’s first location offering a 0% tax rate for Single Family Offices (SFOs) on income from eligible investments—including financial assets, private equity, and real estate—for up to 20 years.
This move will see not only Singaporeans but more from other countries enquiring on this soon in 2025
5. Attractive Currency Exchange Rates
The favorable exchange rate between the Singapore Dollar (SGD) and Malaysian Ringgit (MYR) of 1 SGD = MYR 3.4, it continues to draw Singaporeans to Johor, not just for food and groceries but increasingly for property investments. Singaporeans enjoy significant purchasing power, making premium properties in Johor far more affordable than similar ones in Singapore.
Johor’s cost of living is also about 60% lower than Singapore’s. For example, a basic meal with a drink costs RM13 compared to SGD13.60, and a fast food combo is RM20 versus SGD10. This affordability makes Johor’s property market an attractive option for both residential and commercial buyers.
The Future
As Johor Bahru continues to develop its infrastructure, economic zones, and sustainable living initiatives, its property market is set to flourish. Combined with Singapore’s strategic position as a financial hub, the synergy between the two regions creates endless possibilities for property investors.
From the rapid connectivity of the RTS Link to the promising opportunities in Forest City, and the supportive policies that encourage cross-border investments, the Johor-Singapore property connection is evolving into a thriving ecosystem.
For investors, the question is no longer "Why Johor?", but rather, "When should I invest?" With all signs pointing toward sustained growth and innovation, the answer is simple: The time is now.
