The nearing completion of the Johor Bahru-Singapore Rapid Transit System (RTS) Link has ignited interest among Singaporeans in investing in Johor Bahru’s property market. Factors such as the favorable exchange rate, lower cost of living, and strong rental demand have made Johor Bahru an attractive destination for property investment.
Key Points:
- The Johor Bahru-Singapore RTS Link is set to commence operations by early 2027, serving 10,000 passengers per hour and enhancing connectivity between the two regions.
- Singaporeans are increasingly considering Johor Bahru as a viable option for property investment, drawn by the affordability, favorable exchange rate, and the prospect of future price appreciation.
- Completed projects near the upcoming RTS station, such as Setia Sky 88, have gained attention from Singaporean buyers, offering well-maintained facilities and competitive prices.
- Robust rental demand from Malaysians working in Singapore, expatriates, students, and short-stay operators has contributed to higher rental rates in Johor Bahru.
- The lower cost of living in Johor Bahru, coupled with improved infrastructure projects, special economic zones, and financial incentives, adds to its appeal as a pragmatic choice for property investors.
What Singaporeans Should Be Aware Of:
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- Foreign individuals or companies must obtain prior approval from the relevant State Authority in Malaysia to purchase property.
- Minimum purchase prices for foreigners vary depending on the property type and location.
- Malaysia’s Premium Visa Programme (PVIP) offers long-term residency visas for foreign investors and entrepreneurs, facilitating property ownership.
- Taxes, levies, and real property gains tax (RPGT) apply to property transactions by foreigners.
- Budget 2024 introduces changes to stamp duty rates, taxation of foreign-sourced income, and more.
- Mortgages and borrowing limits depend on individual circumstances, with different financing margins for Malaysia My Second Home (MM2H) participants and non-participants.
As the completion of the RTS Link approaches, Johor Bahru’s property market is poised to attract more Singaporean investors seeking favorable opportunities and a higher quality of life.
