Johor property demand increases among Singapore citizens

As demand from Singaporeans for Johor properties surges, real estate agents foresee an overall positive outlook for Johor’s property market.

Singaporeans are increasingly investing in properties near the upcoming Rapid Transit System (RTS) Link in Johor Bahru, anticipating enhanced cross-border access upon project completion. Home prices, especially around the Bukit Chagar RTS station, have surged in recent years, driven by the prospect of shorter travel times between Singapore and Johor Bahru, as the RTS is set to transport up to 10,000 passengers each way per hour, alleviating congestion on the Causeway, one of the world’s busiest border crossings.

Analysts highlight the transformative potential of the RTS, describing it as a “game-changer” and an integral part of the broader plan to foster closer economic integration between Johor and Singapore. Dr Timothy Wong, a senior lecturer at the National University of Singapore, emphasizes its role in facilitating movement across the border and contributing to the Johor-Singapore Special Economic Zone (SEZ).

The appeal of the light rail transport has enticed Singaporeans to invest in properties near the RTS Link. One buyer, Daniel Ong, purchased two units near Bukit Chagar station, citing the convenience of public transport and lower living costs compared to Singapore. Ong plans to rent one unit and use the other for retirement or vacation purposes.

Observations indicate a notable increase in interest in older properties in the vicinity, with increased demand pushing prices up by approximately 18% over the last two years. Industry players predict a continued price increase as the RTS nears completion, with a potential additional rise of 5 to 6% upon full operation.

Rental prices near the border have almost doubled since the pandemic period, with the potential for further increases as the RTS becomes operational. This surge is attributed to a majority of tenants being Malaysians working in Singapore, drawn by lower rental prices despite the daily commute across the border.

Singaporean buyers are capitalizing on the potential for increased property values and attractive rental income once the RTS opens. The strategic location and connectivity offered by the RTS set to commence passenger service by December 2026, make properties in the area an appealing investment.

As demand from Singaporeans for Johor properties surges, real estate agents foresee an overall positive outlook for Johor’s property market. The upcoming completion of the RTS project is also expected to drive demand for homes near Woodlands North on the Singaporean side, indicating a potential expansion of residential units in the area.