Singapore investors have been buying Johor property for over a decade. Most lost money — or at best broke even after years of holding through oversupply, weak rental demand, and unfavorable currency swings. But two infrastructure developments are structurally changing the Johor-Singapore corridor in ways that previous catalysts (Iskandar Malaysia, Forest City) never delivered.
The RTS Link and the Johor-Singapore Special Economic Zone are not speculative announcements. Both have committed timelines, signed agreements, and visible construction progress. The question for SGD-earning investors is no longer will Johor improve but which parts of Johor, at what entry price, with what cashflow profile.
RTS Link & JS-SEZ — What Changes for Property Investors?
RTS Link (Rapid Transit System Link) connects Bukit Chagar in Johor Bahru to Woodlands North in Singapore. It's a 4km shuttle rail with an expected completion window of 2026–2027. When operational, the cross-border commute drops to approximately 5 minutes station-to-station — compared to the current 1–3 hour bus/car ordeal during peak hours.
A 5-minute rail crossing fundamentally changes the calculus. Johor stops being "another country" for daily commuters and becomes a viable residential base for Singapore-based workers. That's a structural demand shift, not a marketing gimmick.
JS-SEZ (Johor-Singapore Special Economic Zone) was jointly announced in December 2024 by both governments. The zone covers a significant portion of Johor, with tax incentives to attract businesses and streamline cross-border movement. Details are still being finalized, but the framework includes corporate tax incentives, simplified work permits, and facilitated goods movement.
What this means for property investors:
- Rental demand expansion. The RTS Link creates a new tenant class: Singaporeans and PRs who work in Singapore but live in Johor. These tenants earn in SGD and pay rent in MYR — strong tenants for landlords.
- Commercial spillover. JS-SEZ incentives will attract companies to set up offices in Johor, creating local employment demand that supports rental markets beyond the cross-border commuter segment.
- Price floor effect. Properties within walking distance of the Bukit Chagar RTS station will likely develop a price premium similar to what MRT-adjacent properties command in the Klang Valley.
Neither development is priced in yet at cashflow-positive levels across Johor. The market has priced in some capital appreciation expectation — but rental yields in many JB developments remain weak. That creates both opportunity and risk.
Johor Cashflow Data — Which Areas Are Positive?
Johor's rental market is thinner than KL's. Fewer expats, fewer multinational headquarters, and a smaller tenant pool above RM 2,500/month. The RTS and JS-SEZ will take time to shift this.
Areas closer to CIQ (the current immigration checkpoint) and the future RTS station at Bukit Chagar show stronger rental demand than developments further south in Iskandar Puteri. Established JB city center neighborhoods — near schools, hospitals, and transport links — attract more consistent tenants than newer developments built for a future that hasn't fully arrived.
General patterns we observe:
- JB city center (within 3km of CIQ): Higher occupancy rates, more rental comparables, more predictable tenant turnover. Entry prices are moderate.
- Medini/Iskandar Puteri: Mixed. Some developments have reasonable occupancy; others remain significantly under-tenanted. The distance from Singapore's entry points and limited surrounding amenities keep rental demand patchy.
- Permas Jaya / Masai corridor: Lower entry prices, but also lower absolute rents. Can work for cashflow if the purchase price is right, but fewer rental comparables make yield estimates less reliable.
The single biggest risk in Johor property is buying a unit that looks cashflow-positive on paper but sits vacant for 3–6 months because the rental pool in that specific development is too shallow. Verify rental demand with actual comparables before committing. Our framework for evaluating this is covered in the 5 signs of a cashflow-positive property.
Medini vs Danga Bay vs Iskandar Puteri — Where the Data Points
These three areas attract the most attention from Singaporean buyers. They have meaningfully different investment profiles.
Medini holds a unique regulatory position: foreign buyers can purchase new strata-titled properties here with no minimum price threshold. That's a significant advantage — most other Johor areas impose a RM 1 million minimum for foreigners. However, this accessibility has drawn speculative supply. Many developments were sold heavily to foreign buyers during 2013–2016, and rental absorption has been slow. Some have occupancy rates well below 50%. If buying in Medini, focus on developments at least 5 years mature with verifiable tenancy records — not new or near-empty towers.
Danga Bay is more established — closer to JB city center, better surrounding amenities (malls, F&B, transport), and a longer rental track record. Yields tend to be moderate rather than spectacular, but the demand base is more reliable. Many JB-based professionals and Singaporean PRs rent here.
Iskandar Puteri (broader area) covers a large geography with enormous variation. Some pockets, particularly around Edu City and Puteri Harbour, have specific demand drivers (students, marina users). Others are still waiting for population density to catch up to the built environment. Treat Iskandar Puteri as 15 different micro-markets, not one.
Bottom line: For cashflow-focused Singapore investors, Danga Bay and JB city center offer more predictable rental income today. Medini and Iskandar Puteri may offer better upside if RTS and JS-SEZ deliver — but the cashflow risk during the holding period is higher.
The Stamp Duty Math for Singaporeans
Foreign buyers in Malaysia pay a stamp duty structure that adds significantly to upfront costs. Here's the breakdown on an RM 800,000 Johor condominium.
Standard stamp duty on property transfers:
- First RM 100,000: 1%
- RM 100,001 – RM 500,000: 2%
- RM 500,001 – RM 1,000,000: 3%
Additional foreign buyer levy: Malaysian states can impose additional duties on foreign purchasers. As of 2026, Johor applies an additional charge that brings total stamp duty for foreigners to approximately 8% on the transfer value.
| Cost Item | Amount (RM) |
|---|---|
| Standard stamp duty (tiered) | 18,000 |
| Foreign buyer additional levy | ~46,000 |
| Total stamp duty | ~64,000 |
| Legal fees (SPA + loan agreement) | ~15,000 |
| Valuation fee | ~3,000 |
| Loan stamp duty (0.5% on loan) | ~2,800 |
| Agent fee (if applicable) | ~16,000 |
| Total upfront costs | ~100,800 |
That's roughly RM 100,800 — or about SGD 29,600 at the current exchange rate of ~3.4. On top of your down payment.
If you're financing 70% (the typical maximum for foreign buyers), your down payment is RM 240,000 plus RM 100,800 in transaction costs — total outlay of approximately RM 340,800 (SGD ~100,000) before collecting a single ringgit of rent.
At a gross yield of 5.5%, it takes roughly 4.5 years of net-positive cashflow just to recover transaction costs. Factor this into your holding period expectations.
Financing from Singapore — Banks, LTV, Islamic Options
Malaysian branches of Singapore-headquartered banks tend to offer the smoothest cross-border financing process.
Key parameters:
- LTV (Loan-to-Value): 60–70% for foreign buyers. Some banks cap at 60% for Johor specifically.
- Tenure: Up to 35 years, subject to age limit at maturity (typically 65–70).
- Currency: Loans are denominated in MYR. You earn in SGD and repay in MYR — currency movement affects your effective cost of carry.
Common cross-border lenders:
- HSBC Malaysia: Active in cross-border lending. Competitive rates for Singapore-sourced income borrowers.
- UOB Malaysia: Leverages UOB Singapore relationship. Documentation process tends to be streamlined for existing UOB SG customers.
- OCBC Malaysia (Al-Amin): Offers Islamic financing (Takaful-based). Useful for locking in a fixed profit rate.
- Maybank Islamic: Largest Islamic bank in Malaysia. Strong presence in Johor.
Islamic financing advantage for SGD earners: Islamic home financing in Malaysia typically uses a fixed profit rate for at least part of the tenure. A fixed Islamic rate provides payment certainty — and when your income is in SGD, locking your MYR repayment amount removes one variable from the equation.
For a full guide on the cross-border purchase process, see our walkthrough on buying Malaysian property from Singapore.
Johor vs KL for SGD Cashflow
Many Singaporean investors default to Johor for proximity. But KL deserves serious consideration on a pure cashflow basis.
| Factor | Johor | Kuala Lumpur |
|---|---|---|
| Entry price (typical condo) | RM 400K–800K | RM 500K–1.2M |
| Gross rental yield | 4.5–6.5% | 5.0–7.0% |
| Rental market depth | Thin — fewer comparables, longer vacancy | Deep — large expat pool, corporate tenants |
| Foreign minimum price | RM 1M (Medini exempted) | RM 1M (RM 2M for some areas) |
| Average vacancy | 1.5–3 months/year | 0.5–1.5 months/year |
| Proximity to Singapore | 5 mins (RTS) / 1–3 hrs (current) | 1-hour flight |
| Tenant profile | Local workers, some SG commuters | Expats, MNCs, embassies, students |
| Management ease | Driveable from SG for inspections | Requires remote management or agent |
| Capital appreciation history | Flat to negative (2015–2024) | Mixed, stronger in transit-adjacent |
For proximity and personal use: Johor wins. If you plan to use the property on weekends, retire there eventually, or want to physically manage it, the geographic advantage is real — especially post-RTS.
For pure rental cashflow: KL has the deeper market. More tenants, shorter vacancies, better rental infrastructure, and more comparables for reliable yield estimates. Our rent vs mortgage analysis across Malaysian states shows the variance clearly.
For currency play: Both are MYR-denominated. The SGD/MYR rate (~3.4) benefits Singapore buyers equally in either market. KL's higher absolute rents provide more buffer against currency fluctuation eating into your net position.
The Honest Assessment
Johor property is entering a genuinely different phase. The RTS Link and JS-SEZ are funded, under construction, and backed by bilateral government agreements. The structural case for Johor rental demand growth over the next 3–5 years is the strongest since Iskandar Malaysia was announced in 2006.
But infrastructure doesn't fix bad cashflow math. An overpriced unit in an oversupplied development next to an RTS station is still a bad investment. The fundamentals still apply: verify gross yield, check maintenance costs, confirm rental demand with actual comparables, and model your full cost stack including the 8% foreign stamp duty.
Singapore investors who approach Johor with cashflow discipline — rather than buying on proximity and hope — are the ones who will benefit most from what's coming.
All figures in this post are based on publicly available information as of February 2026. Stamp duty rates, financing terms, and tax structures are subject to change. Consult a qualified Malaysian property lawyer and tax advisor before making any investment decision.