Shifting housing demand from Singapore to Johor could offer room to ease ABSD rates

MANY observers pick Johor’s property market as a clear winner from two major initiatives that will strengthen ties between Malaysia’s Johor state and neighbouring Singapore, namely the development of the Johor-Singapore Special Economic Zone (JS-SEZ) and the building of the Johor Bahru-Singapore Rapid Transit (RTS) Link.

Think of rising demand for office, warehouse, industrial and hotel space in Johor from businesses investing in the JS-SEZ or higher demand for homes and revenue for malls and hotels from Singapore residents flocking to live and play in Johor’s capital Johor Bahru. Travel time between Bukit Chagar in Johor Bahru and Woodlands North in Singapore will be about five minutes on the RTS Link. The link is targeted to commence passenger service by late 2026.

Subject to effective implementation, the JS-SEZ and RTS Link could yield net benefits to both Malaysia and Singapore. Indeed, closer ties among neighbours might help mitigate rising protectionism globally.