28-1-2024 (SINGAPORE) Johor Bahru, the border city connecting Singapore and Malaysia, once notorious for its high crime rates, is now becoming a sought-after destination for Singaporean citizens looking to escape soaring rents and the increasing cost of living. While Singapore has consistently ranked among the world’s most expensive cities, with Hong Kong trailing at fifth place last year, Johor Bahru remains absent from the list. Situated on the opposite end of the Johor-Singapore Causeway, a narrow 1km strait separates the two cities.
As the capital of the Malaysian state of Johor, Johor Bahru has experienced a construction boom, including the development of high-rise condominiums within walking distance of the border checkpoint and a new rail station that connects directly to Singapore’s extensive mass rapid transit line. Gregory Low, a property agent who identifies himself as “half from Singapore, half from JB” (a colloquial term for Johor Bahru), has witnessed a surge in Singaporeans opting to relocate to Malaysia due to skyrocketing rental prices in Singapore.
Low stated, “There is a spike in Singaporeans investing and moving to JB because of the rental spike in Singapore.” Since Low moved to Johor Bahru in 2012, rent prices in Singapore have more than doubled. According to Singapore’s Urban Redevelopment Authority, rent for private residential properties increased by 29.7% between 2021 and 2022 alone. The recent increase in Singapore’s Goods and Services Tax, from 7% to 9%, at the beginning of the year, as well as rising electricity costs, have further compounded the financial strain.
Sharmila Devi, a Malaysian banker, experienced the harsh reality of Singapore’s exorbitant housing costs when she accepted a job offer in the city-state. Accustomed to the privacy of living alone in a cozy Kuala Lumpur apartment, Sharmila now finds herself sharing a room with strangers, paying a staggering US$2,000 per month. She expressed her dilemma, saying, “I have had to reconsider my needs and wants. Do I want to spend 20% of my salary and share a unit with five to six strangers, or do I want my own space at the cost of half my salary?”
The shift in work culture and the rise of remote work opportunities following the pandemic have made it easier for people to consider relocating from Singapore to Johor Bahru. Harjinder Singh, a Singaporean logistics manager in Tuas, now works in the office only once a week, allowing him to spend most of his time in Horizon Hills, a new township just outside Johor Bahru, where he rents a landed terrace house. Harjinder explained, “I’ve always wanted a landed property for my dogs to run around.”
The township is conveniently located between the Johor-Singapore Causeway and the Second Link Bridge, the only other land connection between the two countries. Harjinder added, “Tuas is just across, and the bridge is less congested than the Causeway. If work needs me, I can be in Singapore in under an hour.” The strength of the Singapore dollar and the depreciating Malaysian ringgit have further incentivized the move, with the dollar’s value now more than 3.5 times higher than the ringgit.
Singaporeans, taking advantage of their strong currency and the affordable options available, are not seeking large properties in Johor Bahru. Instead, they are looking for modest upgrades from their 1,000 sq ft public housing flats in Singapore. Property agent Low explained, “Many prefer linked houses or apartments that are around 1,400 sq ft.”
Connectivity plays a crucial role in the decision-making process. One notable property is Guangzhou-brd R&F Group’s Princess Cove complex, a sprawling development of apartments and commercial buildings that includes an opera house. It is attracting Singaporean buyers as it claims to be “only 1,056 meters away from Singapore.” Overlooking the causeway, the property is also highly sought after because it will eventually connect to the Johor Bahru-Singapore Rapid Transit System Link (RTS Link), scheduled to begin operating by the end of 2026.
Situated east of the congested Causeway, the 4km RTS Link can accommodate over 10,000 people per hour during rush hour, utilizing a single border check for both countries and the use of QR codes for faster movement instead of passports. Its introduction is eagerly anticipated on both sides of the border, as over 350,000 people rely on the century-old causeway daily, making it one of the busiest land border crossings worldwide.
Malaysian Prime Minister Anwar Ibrahim and his Singaporean counterpart Lee Hsien Loong recently visited the project, which is 65% complete. Lee described it as a testament to “both countries charting new areas of cooperation, including in trade and investment, tourism, innovation, and the digital andtechnology sectors.” The RTS Link is expected to further enhance the connectivity between Singapore and Johor Bahru, making it even more appealing for Singaporeans seeking affordable housing options.
However, the influx of Singaporeans into Johor Bahru has not been without its challenges. Some locals have expressed concerns about rising property prices and the impact on the local community. There have also been instances of cultural clashes and differing expectations between Singaporeans and Malaysians. Efforts are being made to address these concerns and promote better integration between the two communities.
Overall, the affordability of housing and the proximity to Singapore have made Johor Bahru an attractive option for Singaporeans looking to escape the high cost of living. The availability of modern amenities, improved infrastructure, and upcoming projects like the RTS Link have further bolstered its appeal. As more Singaporeans consider relocating to Johor Bahru, it remains to be seen how this trend will shape the dynamics between the two cities in the long run.
