Why Singaporeans Are Buying Properties in Johor Bahru

Mar 24, 2025

—

Singaporeans have long been attracted to the idea of owning property in Johor Bahru (JB), Malaysia, and recent trends indicate a significant uptick in this interest. With rising property prices in Singapore and improved connectivity between the two cities, many Singaporeans see JB as a viable alternative for investment, retirement, or even daily commuting. Below, we explore the key reasons behind this growing trend.

1. Affordability and Value for Money

The escalating property prices in Singapore have made homeownership a challenge for many. In contrast, JB offers a more affordable market. For instance, in 2024, approximately 40% of residential property transactions in Johor were for properties priced below RM500,000 (about SGD 150,000), highlighting the availability of budget-friendly options. This price disparity allows Singaporeans to acquire larger homes or invest in properties without the financial strain experienced in Singapore.

2. Proximity and Improved Connectivity

JB’s close proximity to Singapore makes it an attractive option for those considering cross-border living or investment. The upcoming Johor Bahru-Singapore Rapid Transit System (RTS) Link, set to be operational in 2026, is anticipated to significantly ease commuting between the two cities. This development has already spurred interest among Singaporean buyers, with properties near the RTS stations, such as the Princess Cove condominium, witnessing substantial demand.

3. Lifestyle and Space

Many Singaporeans are drawn to JB for its more relaxed lifestyle and spacious living environments. The availability of larger homes, often within gated communities, offers a contrast to the high-density living in Singapore. This appeal is particularly strong among retirees and families seeking a balance between urban convenience and suburban tranquility.

4. Investment Potential

The property market in JB has shown promising growth. In the third quarter of 2024, residential transactions increased by 8.7% compared to the same period in 2023, with the total transaction value rising by 14.4% to MYR 10.26 billion (approximately SGD 3.07 billion). Ongoing developments, such as the Iskandar Puteri project, continue to attract both domestic and international investors, enhancing the region’s economic prospects.

5. Lower Cost of Living

Beyond affordable housing, the overall cost of living in JB remains lower than in Singapore. Expenses related to groceries, dining, entertainment, and services are generally more budget-friendly, allowing Singaporeans to enjoy a comfortable lifestyle without the high costs associated with living in Singapore.

6. Education and Healthcare Facilities

JB has seen improvements in its educational and healthcare infrastructure. The presence of reputable international schools and private institutions offers quality education options at a fraction of the cost in Singapore. Additionally, private hospitals in JB provide medical services that are both accessible and affordable, further enhancing the city’s appeal to families and retirees.

Potential Risks and Challenges

While the benefits are compelling, it’s essential to consider potential challenges. Foreign property ownership laws in Malaysia, currency exchange fluctuations, and concerns over security are factors that require careful evaluation. Conducting thorough research and due diligence is crucial to navigate these aspects effectively.

References: