Singapore house prices and rents are speculated high, and private housing prices are also very high, causing many Singaporeans and permanent residents can't afford to buy. Due to these reasons and also the high exchange rate gap, they are buying properties in Malaysia.
Many people refer to Johor Bahru as the “backyard” of Singapore. Since it is only separated by a border, many Singaporeans will travel to Malaysia every weekend. Some people simply buy property in Johor Bahru as a weekend vacation home. In recent years, many Singaporeans have been attracted to the area due to the rapid development of the Iskandar area.
Reason Of Buying Properties In Malaysia
The reason for the high property prices is because many wealthy foreigners have migrated to Singapore in recent years and bought property there. Although the Singapore government has implemented property tax and other measures to cool down the market, many foreigners still choose to buy property in Singapore, and it is the most popular country for investment and relocation for wealthy businessmen from Asian countries.
The threshold for foreigners to buy property in Malaysia is RM1 million, and the Johor government has introduced various measures to promote the property market. These include allowing developers to apply to sell condominium units priced between RM500,000 and RM1 million to foreigners. There is no restriction if you are a Malaysian citizen but a permanent resident of Singapore.
