Singapore vs Johor: Which Is Better for Property Investment in 2025?
The property markets of Singapore and Johor Bahru (JB) have always been neighbours, but in 2025, they’re no longer just neighbours. With the Johor-Singapore Special Economic Zone (JS-SEZ) launched and the Rapid Transit System (RTS) almost operational, the two cities are more interconnected than ever. But when it comes to real estate investment, which market offers the better opportunity?
Let’s compare these two Southeast Asian hubs across six key factors: affordability, rental yield, capital appreciation, liquidity, future growth and a crucial one often missed: foreign ownership restrictions.
1. Affordability: Johor wins by a wide margin
Singapore remains one of the world’s most expensive property markets. Even outside its city centre, prices can exceed S$2,000 per square foot. In core districts, that number easily climbs to S$3,000 and above.
By contrast, Johor’s high-end developments such as R&F Princess Cove, just 650 metres from the Singapore border, offer waterfront, city-view units from around RM1,100 to RM1,400 per square foot. That’s about S$300–400 psf.
For investors, that means you could potentially purchase two or three Johor units for the price of a single entry-level Singapore apartment.
2. Rental Yield: Johor leads on raw returns
In Singapore, gross rental yields tend to range between 2% and 3%, due to high purchase prices and strong capital preservation. In Johor, yields of 3.5% to 5% are common, especially in well-located projects near the RTS or JB CIQ.
Short-term rentals like Airbnb or co-living arrangements can enhance returns, though they require more active management. For those open to a more hands-on approach, Johor offers stronger income potential.
3. Capital Appreciation: Singapore is reliable, Johor is catching up
Singapore’s tightly managed land supply and robust regulatory framework mean long-term capital appreciation is steady and predictable. It’s the gold standard for institutional investors looking to preserve capital.
Johor has historically been more volatile facing oversupply issues in the past. But that’s changing. With the RTS set to slash commute times to Singapore, and the JS-SEZ drawing attention from global tech and data centre players like Microsoft and Nvidia, Johor is poised for its strongest growth wave yet.
In short: Singapore is still safer for long-term value, but Johor now offers more upside.
4. Liquidity: Singapore remains the stronger exit market
Singapore has deep demand, both local and foreign, which makes it easier to sell property when needed. Financing is accessible, and institutional buyers play a big role in market stability.
Johor’s market is still dominated by foreign and regional individual buyers. Resale cycles can be slower, and liquidity depends more on location, project reputation, and infrastructure access.
That said, interest is rising especially in RTS-linked areas like Bukit Chagar and the R&F district.
5. Foreign Buyer Restrictions: Singapore is heavily taxed
Here’s where Johor pulls significantly ahead.
In Singapore, foreign buyers must pay a jaw-dropping 60% Additional Buyer’s Stamp Duty (ABSD) on top of standard duties. That means a foreigner buying a S$2 million condo could pay S$1.2 million in taxes alone. Foreigners are also restricted from buying landed property and face quotas in certain developments.
Malaysia, by comparison, offers a much more open environment:
Foreigners can freely buy strata-titled properties (above RM600k–RM1m minimum, depending on the state).
Stamp duty is modest, 4% for foreigners and often absorbed by developers in projects like R&F Princess Cove.
No additional foreigner-specific taxes apply during purchase.
For global investors, this ease of access and lower cost makes Malaysia far more attractive from a regulatory perspective.
6. Future Potential: Johor is the growth story
Singapore is established, safe, and mature. But Johor is on the rise.
The RTS link, expected to launch in 2026, will connect Johor Bahru directly to Singapore’s MRT system in just five minutes. This will not only reduce traffic congestion but transform Johor into a viable extension of Singapore’s urban economy.
Add to that the JS-SEZ, special tax zones, infrastructure upgrades, and a growing data centre sector, Johor is becoming a serious player. If you’re looking to ride the next 5 to 10 years of regional growth, it’s one of Southeast Asia’s most interesting bets.
So, which is better for you?
If you’re a conservative investor focused on capital preservation and high liquidity, Singapore still leads. But if you’re yield-driven, looking for growth potential, or interested in a lifestyle/retirement home that doubles as an investment, Johor is unmatched in terms of value and upside.
And if you're targeting the sweet spot, close to Singapore, within the SEZ zone, and near major infrastructure, developments like R&F Princess Cove are hard to ignore in 2025.