Johor Bahru, Malaysia

MALAYSIA: With Johor Bahru’s RTS link expected to start passenger services by the end of 2026, many Singaporeans are flocking to JB’s property market as it complements Singapore’s high housing prices.

Channel News Asia reported in January of analysts pointing out that the anticipation of the RTS link’s completion has driven up demand for properties near the Bukit Chagar RTS station, with its promise of shorter travel times between Singapore and Johor Bahru. 

Industry players, however, noted how the increased demand has pushed prices of properties within walking distance of the Malaysia terminus to increase by about 18% in the last two years. A two-bedroom condominium now costs about S$240,000 (US$180,000).

Dr Lee Nai Jia, head of real estate intelligence and digital and software solutions at the PropertyGuru Group, said that the increase is expected to continue as the RTS progressively gets completed. When the RTS is fully functional, there is an anticipated increase of 5 to 6% more before the prices stabilise.

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Rental prices have gone up as well. Apartments near the border now demand almost twice the rental compared to the pandemic period.

Although this may be a “no” for some, others find this to be a potential earning opportunity.

James Lim, a 55-year-old who owns properties in Genting and Kuala Lumpur purchased a two-bedder condominium at a freehold mega project in December.

He said, “When the RTS opens in two years, this property price will definitely go up. The rental price will also definitely be quite attractive as compared to other places.”

With many willing to commute to JB for lower rental prices, the Singapore Dollar at a higher rate to the Malaysian Ringgit, and Malaysia ranking 8th in the best places to retire list, is investing in JB a good idea?

What to Consider Before Investing Near JB’s RTS Link

Here are some key factors to ponder before diving into property investment in Johor Bahru, according to KCC Holdings:

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1. Evaluate the location

Assess the location thoroughly. If you’re investing for real estate property business, properties in bustling areas often yield higher returns. Look for proximity to essential amenities like supermarkets and malls to ensure convenience for potential tenants or buyers.

2. Partner with reliable property developers

Work with trusted real estate agents to avoid scams and misjudgements. Ensure they’re listed under The Malaysian Institute of Estate Agents’s legitimate realtors to safeguard your investment.

3. Opt for landed property

Consider investing in landed property, especially if you’re new to real estate. It’s easier to manage and comes with distinct ownership rights, offering a straightforward investment process.

4. Choose under-development properties

Prefer under-development properties for a potentially higher ROI. Developers often provide incentives like free legal fees and rebates, making it an attractive option for investors seeking value.

5. Meet the minimum purchase price requirements

Ensure you meet the minimum purchase price requirement, which is at least RM1 million (S$283,699.40) for foreign investors. This ensures compliance with Malaysian property laws and eligibility for ownership.

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6. Match your property investment to your finances

Invest within your financial means to weather any downturns. Ensure you have adequate resources to sustain your investment, even during challenging economic conditions.

Although the overall outlook for Johor’s property market remains positive, with demand expected to continue on an uptrend, according to Mr Keith Ooi, group managing director of real estate agency Knight Frank Malaysia, these considerations are important for successful property investment in Johor Bahru.

Knowing these can lead to a rewarding return on investment.

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