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
The RTS Link is (almost) here! If you have plans to travel to Singapore from Malaysia, it’s much easier once the RTS Link is ready!
But it’s not just great for traveling – the RTS Link can bring lots of potential earning opportunities (perhaps even in Singapore dollars).
It’s more than amazing news for investors looking at Johor Bahru city centre – seasoned real estate agents Larry Leong and Connie Lee agree.
Continue reading to find out why investing in JB is the way to go!
Johor-Singapore RTS Link: Investors’ Golden Opportunity
1. What is the RTS Link?
The Johor Bahru–Singapore Rapid Transit System Link is an international cross-border rapid transit system that will connect Malaysia‘s second largest city, Johor Bahru and Woodlands, Singapore, crossing the Strait of Johor.
The government has been taking steps to improve the immigration system and infrastructure in the Johor town area.
The RTS, which is currently 65% finished and expected to start running in 2026, will make it much easier for people to travel between the two areas, boosting economic activity.
2. Insights on the current property market in Johor
In Johor Bahru’s city center, the average price per square foot currently ranges from RM950 to RM1000.
Before hearing about the upcoming RTS, prices were around RM750 to RM800. This is an increase of almost 15% over the past six months.
This shows that the upcoming RTS can bring in very promising growth for the Johor Bahru property scene.
Even before the RTS is completed, we can see a daily influx of Singaporeans into Johor Bahru for various activities.
With the RTS in place, it’ll be easier and quicker to commute between Singapore and Malaysia.
Singaporeans will want to purchase property in Johor Bahru
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.
It’s clear 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.
3. Increased opportunities for earning: 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.
This way, levies fees or costs can be reduced for Singaporean investors, plus more job opportunities for those seeking to earn in SGD while still staying in cost-effective Malaysia.
Johor-Singapore Special Economic Zone (JS-SEZ)
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 neighboring 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.
Attractive currency exchange rates
Moreover, for Malaysians seeking employment in Singapore, the favorable exchange rate of 1 to 3.5 makes working across the border appealing.
The purchasing power in Johor Bahru can sometimes be higher than in Kuala Lumpur.
Take, for example, the cost of a haircut.
In Singapore, a standard haircut may cost around $SGD50.
In Johor Bahru, the cost for a similar haircut is around RM50.
Johor Bahru is considered affordable for Singaporeans, making it an attractive market for such services.
Many Singaporeans visit Johor Bahru, particularly on weekends, for various activities such as shopping, entertainment, and family outings.
As a result, the demand for services like haircutting, medical services, and entertainment in Johor Bahru is high, sometimes even surpassing that of Kuala Lumpur.
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.
However, envision a future with the RTS in operation.
With seamless transportation, the possibility arises for both spouses 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.
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.
4. 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.
5. 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.
My advice to investors is to prioritize 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.
6. 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 RTS news.
We’re seeing an increase in outstation customers visiting Johor Bahru to assess its potential, including its HR landscape and opportunities over the next five years.
While Kuala Lumpur remains our main city, Johor Bahru is emerging as the next significant city, offering comparable opportunities and entertainment options.
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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