Petaling Jaya: Johor is currently experiencing a surge in property demand from foreigners, with Singaporean buyers leading the way. According to DataSense real estate intelligence head Dr. Lee Nai Jia, Johor is seeing the strongest demand from foreign buyers, and this momentum is expected to continue in the coming years. The Property Market Outlook Report 2024 highlights Iskandar Puteri in Johor as the area with the highest percentage of foreign demand, primarily from Singaporeans and permanent residents.
One of the key factors driving this increased interest from Singaporean buyers is the announcement of the Special Economic Zone and the ongoing completion of the Johor Bahru-Singapore Rapid Transit System (RTS) Link. These developments have boosted demand from Singaporeans looking to invest in properties in Johor. Additionally, the high property prices in Singapore have led many buyers to explore more affordable options in Johor, with a focus on properties priced below RM1 million.
Dr. Lee noted that Singaporeans are particularly attracted to Malaysia’s My Second Home (MM2H) program, which offers incentives for foreigners looking to invest in Malaysian properties. While some potential buyers are still analyzing their options, there is a growing interest among Malaysian citizens living in Singapore who are considering purchasing properties in Johor.
The first group showing interest in Johor properties are Singapore-based Malaysians who commute between the two countries due to high rental prices in Singapore. The second group consists of potential buyers from Singapore who are drawn to Johor by the government’s economic development initiatives. Projects like the R&F Princess Cove @ Tanjung Puteri have garnered attention from buyers, although price appreciation levels may not see significant increases in the near future.
Amy Wong, executive director at Knight Frank Malaysia, emphasized the importance of connectivity in driving property demand. The completion of the RTS will provide a much-needed link between Malaysia and Singapore, easing congestion at existing border crossings. Wong also highlighted the high rental prices and limited office space in Singapore as factors pushing buyers to consider living in Johor.
The rise of hybrid work environments in Singapore, where employees only need to be in the office a few times a week, has further encouraged interest in Johor properties. With the convenience of the RTS and the affordability of properties in Johor, more Singaporeans are considering investing in properties across the border.
In conclusion, the property market in Johor is experiencing a significant uptick in demand from Singaporean buyers, driven by factors such as affordability, government initiatives, and improved connectivity. As the momentum continues, Johor is poised to become a hotspot for foreign property investment in the coming years.