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How Johor RTS Development Shapes Real Estate in Johor and Singapore?

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Johor RTS Development Shapes Real Estate in Johor and Singapore

Source: MRT Corp

The Johor-Singapore Rapid Transit System (RTS) Link is not a tiny transportation project; it’s a catalyst for change.

Commuters plagued by hours-long congestion will soon enjoy seamless cross-border travel in under six minutes.

With connectivity improved, Johor's property market is poised for unprecedented growth, attracting investors eager for high returns.

But how will the RTS impact real estate on both sides of the border? Let’s explore!

How Johor RTS Development Shapes Real Estate in Johor and Singapore?

  1. Johor-Singapore RTS Development: Transforming Connectivity
  2. The RTS Effect: Impact on Johor’s Real Estate Market
  3. The RTS Effect: Impacts on Singapore’s Real Estate Market
  4. Johor-Singapore SEZ: Economic Integration and Real Estate Growth
  5. Investment Tips: Maximizing ROI in Johor Real Estate
  6. Opportunities for Investors: Why Now is the Time
  7. Challenges and Mitigation Strategies for Investors

FAQs About Johor-Singapore Real Estate

1. Johor-Singapore RTS Development: Transforming Connectivity

Johor-Singapore RTS Development

Source: MRT Corp

The Johor Bahru-Singapore Rapid Transit System (RTS) Link, a 4km rail project connecting Bukit Chagar in Johor Bahru to Woodlands North in Singapore, will be operational by December 2026.

With the capacity to transport up to 10,000 passengers per hour in each direction and reducing travel time to under 6 minutes, this development aims to ease one of the world’s busiest border crossings.

By alleviating Causeway congestion, streamlining daily commutes for over 350,000 travelers, and fostering economic integration, the RTS Link is expected to be a game-changer for real estate and cross-border connectivity.

a. Key Features of the RTS

Feature Impact
Travel Time  Reduces Johor-Singapore commute to under six minutes
Passenger Capacity Serves 10,000 passengers per hour per direction
Frequency 3.6-minute intervals during peak hours
Economic Integration Facilitates the Johor-Singapore SEZ, boosting bilateral trade and investments

2. The RTS Effect: Impact on Johor’s Real Estate Market

a. Rising Property Demand

Johor Rising Property Demand

Johor Bahru's property market is undergoing a renaissance, fueled by the announcement of the Johor Bahru-Singapore Rapid Transit System (RTS) Link and the Johor-Singapore Special Economic Zone (SEZ).

These developments have sparked significant interest from Singaporean buyers, drawn by Johor’s comparatively affordable property prices.

Since the commencement of RTS construction, demand for residential properties in Johor Bahru surged by 17% between April 2022 and 2023, with notable hotspots including Bukit Chagar, Iskandar Puteri, and Tebrau.

i. Johor Bahru Real Estate Trends (2022-2024)

Year Residential Overhang (Units) Median Property Price Growth (%) Demand Index Growth (%)
2022 5,258 6.2 +29%
2023 4,228 6.8 +17%
2024 (Projected) 3,900 7.5 +20%

Source: National Property Information Centre (NAPIC), projected data subject to change

Decreasing Overhang: Johor reduced its unsold property units from 5,258 in 2022 to 4,228 in 2023, signaling market recovery.

ii. Residential Property ROI: Johor vs. Singapore

Metric Johor Properties Singapore Properties
Average Price (2-Bedroom) RM794,400 (USD180,000) SGD2 million (USD 1.5million)
Average Rental Yield 6.25%  4.35%
Proximity to RTS Within 3km Within 3km

Source: Global Property Guide (Malaysia price) (Singapore price, Singapore Rental Yield), CNA

The price disparity and attractive rental yields highlight why Singaporeans increasingly turn to Johor for investment and retirement homes.

This trend is particularly evident in serviced residences, where smaller units (400–750 sq ft) have seen a 27% year-on-year price increase, driven by lower entry costs and rising rental demand.

Rental growth is especially notable near the RTS Link, where studio apartments now command monthly rates of RM2,000–RM2,300—nearly double the rates during the pandemic.

b. Economic and Infrastructure Drivers

Johor RTS

Key developments enhancing Johor's property appeal include:

  1. RTS Proximity Benefits: Properties near Bukit Chagar RTS station have seen prices rise 18% in two years.
  2. Special Economic Zones: The Johor-Singapore Special Economic Zone (JS-SEZ) and Forest City's designation as a Special Financial Zone (SFZ) fuel foreign interest.
  3. Economic Growth: Johor’s economy outpaced Malaysia’s national average in 2023, growing by 4.1%.

3. The RTS Effect: Impacts on Singapore’s Real Estate Market

a. Spillover Effects

The RTS Effect Impacts on Singapore’s Real Estate Market

Singapore’s northern districts, particularly Woodlands, are attracting renewed interest from developers and homebuyers due to their proximity to the upcoming RTS Link.

Industry experts predict a surge in demand for residential units in these areas as cross-border connectivity improves.

At the same time, growing housing affordability concerns in Singapore are prompting more residents to consider Johor as a cost-effective alternative.

The narrowing median price gap between new non-landed units in Singapore and Johor further incentivizes cross-border property purchases.

i. Comparative Analysis of Property Prices (2024)

Property Type Singapore (SGD/psf) Johor Bahru (MYR/psf)
Suburban 900-1400 353
City Business District (CBD) 1,800-2,500 353

Source: Bamboo Routes & iProperty

b. Rental Market Shifts

Singapore Rental Market Shifts

Singapore’s high rental rates are pushing expatriates and Malaysians working in Singapore to seek accommodations in Johor.

Studio apartments near Bukit Chagar now command RM2,000–2,300 monthly, nearly double their pre-pandemic rates.

c. Retail and Commercial Trends

Retail and Commercial Trends: Causeway Point in Woodlands

Retail malls like Causeway Point in Woodlands could benefit from increased footfall due to the RTS.

However, some analysts caution that Johor’s competitive retail market, bolstered by lower prices, may divert spending across the border.

4. Johor-Singapore SEZ: Economic Integration and Real Estate Growth

The Johor-Singapore SEZ complements the RTS by fostering bilateral economic activities.

According to Rehda Johor, the SEZ has spurred property demand, with developers reporting higher take-up rates for new launches near SEZ areas.

i. Key SEZ Features

Feature Benefit
Tax Incentives Attracts foreign investors and boosts local economic activity
Employment Growth Job creation in logistics, manufacturing, and retail sectors
Infrastructure Support Enhanced connectivity via RTS and Desaru Expressway expansions

5. Investment Tips: Maximizing ROI in Johor Real Estate

a. Top Locations Near the RTS

Top Locations Near the RTS

Source: MRT Corp

  1. Bukit Chagar: Proximity to the RTS station attracts high rental yields.
  2. Iskandar Puteri: Emerging SEZ projects offer potential for long-term appreciation.
  3. Forest City: Special Financial Zone designation boosts its allure among foreign investors.

b. Key Property Types

Investment Property Types

Property Type Reason to Invest
Serviced Apartments Lower entry costs and high rental demand
Townhouses Cater to families, growing popularity in suburban areas like Iskandar Puteri
Mixed-Use Developments Integrated living spaces drive capital appreciation

6. Opportunities for Investors: Why Now is the Time

a. ROI and Rental Yields

ROI and Rental Yields

Johor properties boast an average gross rental yield of 6.25%, surpassing Malaysia’s national average of 5.16%.

For example, investing in a 750 sq ft service residence near RTS at RM700,000 can yield monthly rentals of RM3,000–3,500, translating into a 6.1% return.

b. Transit-Oriented Development (TOD) Potential

Transit-Oriented Development (TOD) Potential

Source: MRT Corp

The RTS Link exemplifies TOD, with integrated developments blending residential, retail, and office spaces.

Like Shenzhen's transformation post-Hong Kong metro integration, Johor Bahru is expected to witness significant property appreciation.

7. Challenges and Mitigation Strategies for Investors

Challenges and Mitigation Strategies for Investors

Source: MRT Corp

a. Challenges

  1. Oversupply Risks: Johor has historically faced property overhang issues, particularly for high-rise units.
  2. Policy Changes: Uncertainty regarding foreign ownership regulations can deter investors.
  3. Infrastructure Delays: While RTS progress is on track, previous project cancellations (e.g., HSR) highlight potential risks.

b. Mitigation Strategies

  1. Focus on properties with proven rental demand near transit hubs.
  2. Diversify investment portfolios with smaller, high-yield units and larger family homes.
  3. Monitor government updates on SEZ developments and investment incentives.

FAQs About Johor-Singapore Real Estate

a. What is the Johor RTS Link, and why is it important?

The RTS is a rapid transit system connecting Johor Bahru to Singapore, reducing travel time to under six minutes and improving cross-border connectivity.

b. How will the RTS Link affect Johor property prices?

Properties near RTS stations have already experienced an 18% price increase, with further growth anticipated. Post-completion, prices in these areas are projected to rise by 5–6% annually, fueled by improved cross-border connectivity and demand.

c. Is it better to invest in Johor or Singapore properties?

Johor offers higher rental yields (6.25%) and lower entry prices, making it ideal for investors seeking affordability and ROI.

d. What areas near the RTS are best for investment?

Bukit Chagar, Iskandar Puteri, Tebrau, and Forest City stand out for their proximity to the RTS, connectivity, integrated developments, and economic potential.

e. Why are Singaporeans investing in Johor properties?

Affordable housing, a strong Singapore dollar, proximity, lower property prices, high rental yields, and seamless cross-border commuting enabled by the RTS are vital factors driving Singaporean's interest in Johor's property market.

f. Is there a risk of oversupply in Johor’s property market?

While oversupply has been a concern, reduced overhang (down 20% from 2022) signals improved market balance.

g. What property types offer the best ROI near the RTS?

Serviced apartments and mixed-use developments near the RTS are in high demand, driven by a robust rental market and integrated amenities. These properties yield 6–7% gross returns, outperforming the national average.

h. Are there affordable housing options near the RTS?

Yes, service residences starting at RM300,000–RM500,000 offer affordable entry points for investors.

i. When will the RTS Link become operational?

The RTS Link, slated to begin operations in December 2026, is expected to transform cross-border travel, boost Johor’s economy, and drive up property values.

Johor RTS Development

Source: MRT Corp

The Johor-Singapore RTS Link marks a turning point for regional connectivity and property investment.

By enabling swift cross-border commutes, it is set to elevate Johor's real estate appeal and redefine economic integration with Singapore.

The time to act for investors is now—seize the opportunities before prices rise further.


Ready to capitalize on the booming Johor real estate market? Invest now and take advantage of the game-changing RTS development. Hold the high ROI and cross-border opportunities today. Contact us now to find your dream house in Johor!

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Reference and Information Related to Johor RTS

1. iProperty

Is the RTS Link Project Affecting Property Demand in Johor Bahru?

2. New Straits Times

Johor real estate showing signs of steady growth.

3. CNA

Singaporeans snap up residential units near RTS station in Johor Bahru.

4. The Edge Malaysia

Johor finalising local transport network to support RTS integration, says MB.

5. Property Guru for Business

Seizing the Opportunity: Unlocking Johor’s Real Estate Potential with the JB-SG Rapid Transit Link.

Will the Completion of the RTS Link Impact the Retail Market in Northern Singapore?

6. The Straits Times

Private home prices drop 0.7% in Q3 as buyers opt for cheaper resale, new suburban condos.

Johor-Singapore SEZ spurs interest in Johor properties.

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