The contents of this article were contributed by Larry Leong, IQI Registered Estate Agent and Head of Team, and Connie Lee, IQI Registered Estate Agent.
Version: CN
On January 7, 2025, Malaysia and Singapore took a transformative step forward with the official signing of a Memorandum of Understanding (MOU) to develop the Johor-Singapore Special Economic Zone (JS-SEZ).
This bold, ground breaking move promises to reshape the economic landscape of both countries, including streamlining business operations, and fostering talent development.
By narrowing the wage gap with Singapore, Johor is poised to become a competitive powerhouse for skilled professionals, attracting a younger, high-income demographic.
As a result, the property market is expected to see a rise in demand for quality housing, especially near business areas like Johor Bahru and Iskandar Puteri.
It’s more than amazing news for investors looking at Johor Bahru city centre – seasoned real estate agents Larry Leong and Connie Lee agree.
Discover how Johor Bahru is transforming Malaysia’s economic landscape and how property buyers can gain from this growth.
Johor-Singapore Special Economic Zone (JS-SEZ): Golden Opportunity
1. Insights on Johor Property Market
In Johor Bahru’s city center, the average price per square foot currently ranges from RM950 to RM1000.
Prior to the state’s re-development, the property prices were around RM750 to RM800. This is an increase of almost 15% over the past six months.
This shows that the upcoming economic zones can bring in very promising growth for the Johor Bahru property scene. Even before, we can see a daily influx of Singaporeans into Johor Bahru for various activities.
Now with JS-SEZ come into focus, it’ll be easier and quicker to commute and do daily transaction between Johor and Singapore.
How Singaporeans Are Turning to Johor Bahru for Property Investment?
In Singapore, rental and property prices, especially for four-bedroom condominiums, are steep, with rents ranging from SGD$4000 to $5000.
When converted to Malaysian Ringgit, this translates to over RM15,000. So, it’s clear as a day that buying homes in Johor Bahru is a lot cheaper for Singaporeans.
They can rent out their Singapore property for additional income while enjoying passive income to cover installments in Malaysia. With higher demand and accessibility, Johor property prices will continually rise.
The JS-SEZ Key Areas
In line with the memorandum signing, nine key areas have been pinpointed within the JS-SEZ, including Johor Bahru City Center, Iskandar Puteri, Tanjung Pelepas, Pasir Gudang, Senai, Sedenak, Forest City, the Pengerang Integrated Petroleum Complex (PIPC), and Desaru.
Each of these zones is set to specialise in different economic activities.
For example, Iskandar Puteri being the largest urban integrated development in Southeast Asia that spans 24,000 acres is designed with families in mind, featuring a range of parks, educational schools, and modern facilities.
While, Forest City was envisioned as a green, smart city, utilising advanced technology to create a sustainable living environment.
Forest City is designed to eventually house up to 700,000 residents, making it a significant player in Johor-Singapore region.
The JS-SEZ Impacts on Money and Property
With the recent signing of the JS-SEZ, the agreement will profoundly impact real estate markets in both countries.
Additionally, if both nations fully commit to the project, Johor could see GDP growth of 0.5 to 0.9 per cent, contributing up to RM20 billion in the short term, and possibly exceeding RM30 to RM50 billion in the long term.
This economic growth aligns with the International Monetary Fund’s (IMF) prediction, which estimates Malaysia’s GDP in 2025 at RM2.245 trillion, mainly fueled by substantial foreign direct investment, especially from China and the United States.
As demand increases, Johor is likely to see a decrease in its residential property surplus, giving homeowners a chance for their property values to rise.
2. Earn in SGD: An Untapped Market
The hidden opportunity here is making Johor Bahru the centre of Singaporean business or industry operations.
What can be done is establishing a virtual office in Singapore, while setting up their main operations in Johor Bahru.
Consequently, business owners in Johor Bahru may adjust their pricing to capitalize on this demand. In some Johor families, the husband may be permanently employed in Singapore.
Some work as a driver in Singapore, where they earn around SGD$3,500 to $5,000. When converted to Malaysian Ringgit, this translates to more than RM10,000.
In such cases, the husband works in Singapore while the family resides in Johor, and they send money back regularly to sustain themselves.
And with the future of RTS in operation, and seamless transportation, the possibility arises for Johor locals to work together in Singapore, potentially earning a combined income of up to SGD7,000.
That translates to an approximate combined income of RM24,500.
With this much earning potential, it’s become more than feasible to to purchase property in the town city center.
Economic Centre and Tech-Boom
Singapore is also known as an international economic powerhouse.
As part of their strategic planning, Singapore aims to elevate its position further, offering benefits to neighbouring countries like Malaysia.
This presents a valuable opportunity to attract Singaporean industrial players to Johor Bahru.
This isn’t just speculation; it’s a reality. Singaporean industrial players are already expressing interest in purchasing land in Johor Bahru.
Additionally, there’s the exciting development of a data center in collaboration with our government’s economic initiatives.
Located in Sedenak within Johor Bahru, this data centre presents opportunities for Singaporean players in AI and data-related industries to establish a presence, further enhancing job prospects in the region.
Hidden Opportunities: JB’s Open Secret
There are other hidden opportunities that many overlook, particularly in the third or fourth layer, including agricultural land.
This presents a chance to attract international players, industries, or factories to Johor Bahru.
For instance, cultivating agricultural land could supply vegetables to Singapore, offering a lucrative business opportunity where you can earn in Singapore dollars while operating in Malaysia.
3. What sets Johor apart from other states?
Currently, property prices range from RM900 to RM1500 per square foot.
There’s a significant gap between these prices, and it’s because of the comparison between Johor Bahru and other cities like KL or Penang.
Unlike these cities, Johor town center lacks five-star hotels and entertainment options, with only a few shopping malls available.
However, there’s vast undeveloped land in JB, making it ripe for development, especially with the influx of population expected with the RTS.
With this in mind, there’s a great opportunity for the development of high-end properties in the Johor town.
Opportunities For Commercial Development
In Johor Bahru, particularly in the town city center area, commercial listings are relatively scarce.
Currently, there are only three shopping malls serving the area, primarily catering to Malaysian workers commuting to and from Singapore.
This high traffic flow contributes to the demand for commercial space.
However, despite the demand, leasing prices remain reasonable, with retail spaces averaging around RM23 per square foot per month.
Looking ahead, with the impending completion of the RTS, developers have a prime opportunity to capitalize on this demand by introducing more commercial spaces in the city center, especially those tailored to entertainment purposes.
Higher Salary Compared to Other States
In a bold and strategic move, Johor has set new salary benchmarks to attract top talent and boost its competitiveness in the regional job market.
By offering attractive minimum salary standards, the state aims to position itself as an appealing destination for skilled professionals, especially compared to other states in Malaysia.
• RM4,000 minimum for diploma holders
• RM5,000 minimum for degree holders
Shorter Workweek
Starting January 2025, Johor will shift its weekend rest days back to Saturday and Sunday.
This may sound simple, but for businesses, it’s a game changer. Aligning with the rest of Malaysia, and globally recognised rest days, will improve collaboration for Johor-based businesses, especially those with regional and international partners.
In addition, Johor is also taking a progressive approach by considering a 4.5-day workweek for civil servants.
• Monday to Thursday: 7:30 AM – 3:30 PM
• Friday: 7:30 AM – 12:00 PM
This shorter workweek, combined with flexible and remote working options, is aimed at improving productivity and work-life balance.
While currently focused on the public sector, its successful implementation could inspire private companies to adopt similar practices, making Johor an attractive destination for professionals seeking flexibility.
4. Where to invest in property in Johor
Investors are keen on the RTS in Johor Bahru’s town center, which is already a hotspot.
Prices have surged, reaching up to RM1100 or even RM1500 per square foot. However, these properties come with comprehensive management services, which match the high price point.
So experts advice investors to prioritise Johor Bahru.
Here, prices range from RM900 to RM1000 per square foot, making it a prime investment opportunity.
Properties below RM800 per square foot are rare but worth buying if you come across them.
For the next option, consider the second layer, including areas like Danga Bay, Taman Pelangi, Taman Sentosa, Tebrau and Permas Jaya.
While many prefer the city center due to its proximity to Singapore, the second layer offers greater convenience and quality of life.
Despite heavy traffic, these areas are more livable, with fewer congestion issues.
5. Will Johor be the next KL?
We believe that Johor Bahru is attracting significant interest from investors across Malaysia, not just Kuala Lumpur, especially after hearing the JS-SEZ news.
Its strategic location next to Singapore, coupled with developments like the Johor-Singapore SEZ and booming tech infrastructure, position Johor as the next big opportunity for property investors.
This means higher demand for residential properties (for workers and professionals)
If you’re looking for a market that blends affordability, growth, and demand, Johor offers all three. The transformation is happening now—and those who act early could see some of the biggest gains.
The contents of this article were contributed by Larry Leong and Connie Lee.
Larry is the Founder of Dreammakerz Team with Juwai IQI, with 12 years of experience in real estate. Larry has created a team all over Malaysia, assisting other IQI Warriors to achieve 6-digit income. He is committed to creating gross development value in his team.
Connie is a registered estate agent from IQI Dreammakerz, with 8 years of experience. She specializes in the Johor Bahru and Kuala Lumpur markets, and is the recipient of several awards such as the StarProperty Regional award, IQI Champion and more.
IQI has real estate experts all over Malaysia! If you need help to invest in Johor or Malaysian property, leave us your details and we’ll connect you to a professional soonest possible.
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