In 2018, hopeful investors from Singapore seized the opportunity to invest in homes in the neighbouring state of Johor. Investors ranged from rental property investors to planned retirement homes. The introductory cost paired with the outstanding view of Johor in the foreground coupled with Singapore resting gently in the background made it a no-brainer for investors looking at a peaceful retirement home by the sea.
Singapore and Johor’s property market has had a steadily positive symbiotic relationship since 2017. COVID-19 hit hard on these hopeful investors. The properties were left unoccupied and renting these properties did not bear any fruit. This was further escalated by the hit on Singapore’s economy. Some investors were looking for a way to liquify assets to keep them afloat.
With vaccines now in play and the reintroduction of the Home Ownership Campaign (HOC) 2020 - 2021, investors can begin to look forward to a hopeful turnaround. Other factors to consider are:
1. Current low interest rates have brought down the cost of home financing.
2. New policies to encourage foreign investors.
3. The opening of borders between Singapore - Johor.
4. Terrace houses remain in demand.
5. Promotions and rebates from developers.
Despite the effects of COVID-19, foreign investors are still interested in the Johor property market. According to EdgeMarkets, Johor is expected to draw RM5.52b this year. The outlook of 2022 coupled with the effort to boost the market has enough grounds for investors to plan their strategies. Sultan Ibrahim Ibni Almarhum Sultan Iskandar himself expressed his wishes to personally drive investments (The Star, 2021). Are you excited yet?
Check out amazing properties in Johor HERE.
The pandemic has given birth to a quicker transition to digital not just in Malaysia but on a global scale. This includes accessibility and information for new investors to begin their respective investment journeys. Developers have also created innovative marketing campaigns and strategies to welcome new investors. We can look forward to a fresh and innovative experience in the world of property.
With more people jumping on digitally and innovation leading a new era in property, exciting times are coming to PropSocial as we introduce new features in 2022. We aim to make it easier for investors to understand the community they will be investing in. We have also noticed a boost in interest for properties in Johor since August 2021. It has remained in the top 5 most searched properties since. Which boils down to the question: Is investing in Johor’s Property Market still worth it?
The answer depends on each individual investor’s unique strategy. However, we can agree with the fact that there is a new generation of investors in the market and that it’s only a matter of time before Singapore opens up its borders. With that said, we wish all investors the very best to capitalise on the renewed interest in Johor’s property market. If you are interested in investing in Johor, you can post your requirements with us HERE.
(Written by Christian Palencia, 8th November 2021)
