Earn in SGD with your property: Benefits of RTS Link and the Johor-Singapore Special Economic Zone

• The RTS, which is currently 65% finished and expected to start running in 2026, will make it much easier for people to travel between the two areas, boosting economic activity.

The RTS (Rapid Transit System) Link is (almost) here! If you have plans to travel to Singapore from Malaysia, it’s much easier once the RTS Link is ready!

But it’s not just great for travelling, the RTS Link can bring lots of potential earning opportunities (perhaps even in Singapore dollars).

It’s more than amazing news for investors looking at Johor Bahru (JB) city centre, seasoned real estate agents Larry Leong and Connie Lee agree.

Continue reading to find out why investing in JB is the way to go!

1. What is the RTS Link?

The JB-Singapore RTS Link is an international cross-border rapid transit system that will connect Malaysia‘s second largest city, JB, and Woodlands, Singapore, crossing the Strait of Johor.

The government has been taking steps to improve the immigration system and infrastructure in the Johor town area.

The RTS, which is currently 65% finished and expected to start running in 2026, will make it much easier for people to travel between the two areas, boosting economic activity.

2. Insights on the current property market in Johor

In JB’s city centre, the average price psf currently ranges from RM950 to RM1,000. Before hearing about the upcoming RTS, prices were around RM750 to RM800 psf. This is an increase of almost 15% over the past six months.

This shows that the upcoming RTS can bring in very promising growth for the JB property scene.

Even before the RTS is completed, we can see a daily influx of Singaporeans into JB for various activities. With the RTS in place, it’ll be easier and quicker to commute between Singapore and Malaysia.

Singaporeans will want to purchase properties in JB

In Singapore, rental and property prices, especially for four-bedroom condominiums, are steep, with rents ranging from SG$4,000 to SG$5,000 per month. When converted to Malaysian Ringgit, this translates to over RM15,000!

It’s clear that buying homes in JB is a lot cheaper for Singaporeans! They can rent out their Singapore properties for additional income while enjoying passive income to cover instalments in Malaysia.

With higher demand and accessibility, Johor property prices will continually rise.

3. Increased opportunities for earning: an untapped market

The hidden opportunities here are making JB the centre of Singaporean businesses or industry operations.

What can be done is establishing a virtual office in Singapore, while setting up their main operations in JB.

This way, levy fees or costs can be reduced for Singaporean investors, while there are more job opportunities for those seeking to earn in SGD while still staying in cost-effective Malaysia.

Johor-Singapore Special Economic Zone (JS-SEZ)

Singapore is also known as an international economic powerhouse.

As part of its strategic planning, Singapore aims to elevate its position further, offering benefits to neighbouring countries like Malaysia.

This presents a valuable opportunity to attract Singaporean industrial players to JB.

This isn’t just a speculation, but a reality. Singaporean industrial players are already expressing interest in purchasing land in JB.

Additionally, there’s the exciting development of a data centre in collaboration with our government’s economic initiatives. Located in Sedenak within JB, this data centre presents opportunities for Singaporean players in AI and data-related industries to establish a presence, further enhancing job prospects in the region.

Attractive currency exchange rates

Moreover, for Malaysians seeking employment in Singapore, the favourable exchange rate of 1 to 3.5 makes working across the border appealing.

The purchasing power in JB can sometimes be higher than in Kuala Lumpur. Take, for example, the cost of a haircut. In Singapore, a standard haircut may cost around SG$50. In JB, the cost for a similar haircut is around RM50.

Hence, JB is considered affordable for Singaporeans, making it an attractive market for such services. Many Singaporeans visit JB, particularly on weekends, for various activities such as shopping, entertainment and family outings.

As a result, the demand for services like haircutting, medical services and entertainment in JB is high, sometimes even surpassing that of KL. Consequently, business owners in JB may adjust their pricing to capitalise on this demand.

In some Johor families, the husband may be permanently employed in Singapore. Some work as a driver in Singapore, where they earn around SG$3,500 to SG$5,000. When converted to Malaysian Ringgit, this translates to more than RM10,000!

In such cases, the husband works in Singapore while the family resides in Johor, and they send money back regularly to sustain themselves.

However, envision a future with the RTS in operation. With seamless transportation, the possibility arises for both spouses to work together in Singapore, potentially earning a combined income of up to SG$7,000. That translates to an approximate combined income of RM24,500!

With this much earning potential, it’s become more than feasible to purchase properties in the city centre.

Hidden opportunities: JB’s open secret

There are other hidden opportunities that many overlook, particularly in the third or fourth layer, including agricultural land. This presents a chance to attract international players, industries, or factories to JB.

For instance, cultivating agricultural land could supply vegetables to Singapore, offering a lucrative business opportunity where you can earn in Singapore dollars while operating in Malaysia.

4. What sets Johor apart from other states?

Currently, property prices range from RM900 to RM1,500 psf.

There’s a significant gap between these prices, and it’s because of the comparison between JB and other cities like KL or Penang. Unlike these cities, Johor city centre lacks five-star hotels and entertainment options, with only a few shopping malls available.

However, there’s vast undeveloped land in JB, making it ripe for development, especially with the influx of population expected with the RTS.

With this in mind, there’s a great opportunity for the development of high-end properties in the Johor town.

Opportunities for commercial development

In JB, particularly in the city centre area, commercial listings are relatively scarce.

Currently, there are only three shopping malls serving the area, primarily catering to Malaysian workers commuting to and from Singapore. This high traffic flow contributes to the demand for commercial space.

However, despite the demand, leasing prices remain reasonable, with retail spaces averaging around RM23 psf.

Looking ahead, with the impending completion of the RTS Link, developers have prime opportunities to capitalise on this demand by introducing more commercial spaces in the city centre, especially those tailored to entertainment purposes.

5. Where to invest in property in Johor

Investors are keen on the RTS area in JB’s town centre, which is already a hot spot. Prices have surged, reaching up to RM1,100 or even RM1,500 psf. However, these properties come with comprehensive management services, which match the high price points.

My advice to investors is to prioritise JB. Here, prices range from RM900 to RM1,000 psf, making it a prime investment opportunity. Properties below RM800 psf are rare but worth buying if you come across them.

For the next option, consider the second layer, including areas like Danga Bay, Taman Pelangi, Taman Sentosa, Tebrau and Permas Jaya. While many prefer the city centre because of its proximity to Singapore, the second layer offers greater convenience and quality of life. Despite heavy traffic, these areas are more liveable, with fewer congestion issues.

6. Will Johor be the next KL?

We believe that JB is attracting significant interest from investors across Malaysia, not just KL, especially after hearing the RTS news.

We’re seeing an increase in outstation clients visiting JB to assess its potential, including its human resource landscape and opportunities over the next five years.

While KL will remain our main city, JB is emerging as the next significant city, offering comparable opportunities and entertainment options.

The contents of this article were contributed by IQI registered estate agent and head of team Larry Leong and IQI registered estate agent Connie Lee.

Leong is the Founder of Dreammakerz Team with Juwai IQI, with 12 years of experience in real estate. He has created a team covering the whole of Malaysia, assisting other IQI Warriors to achieve six-digit incomes. He is committed to creating value in his team.

Lee is a registered estate agent from IQI Dreammakerz, with eight years of experience. She specialises in the JB and KL markets, and is the recipient of several awards including the IQI Champion and more.

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