High rental rates in Singapore drive demand for properties in Johor
NOR AZURA MD AMIN
ISKANDAR PUTERI - The state government is confident that the demand for property purchases, especially those valued at RM1 million, will continue to be strong among buyers, given the high rental rates in Singapore, which are reported to be among the highest in Asia.
State Housing and Local Government exco Datuk Mohd Jafni Md Shukor said that developers with unsold units are starting to receive positive feedback from buyers in Singapore.
However, he stressed that the state government has ensured that local buyers are protected through the Johor people's housing policy, which restricts the sale of properties worth RM1 million and above to foreigners, including those from Singapore.
"We are seeing a positive response to the unsold houses in the state, and some developers have already started selling these properties. This indirectly helps reduce the number of unsold houses in the state.
"According to our records, 80% of the unsold residential properties in the state are service apartments, particularly in Johor Bahru and Iskandar Puteri. Among them, there are 11,512 units valued between RM500,000 and RM1 million," he added.
He said this at the Open Voting Ceremony of Johor Nation Transit House Taman Kempas Utama at the Iskandar Puteri City Council Hall in Skudai on Tuesday.
Mohd Jafni further noted that the state government will implement various measures to address the issue of unsold homes, such as organising the Johor Housing Expo in July.
"The government will organise Johor Housing Expo and this involves 50 developers who have expressed their willingness to participate in the expo that will take place at Plaza Angsana for four days starting July 27," he said.
On May 30, the Urban Land Institute reported that Singapore's private house prices have surpassed those of Hong Kong, making it the most expensive in the Asia Pacific (APAC) region in 2023.
Rental rates in Singapore are also the highest in the region.
According to the APAC Home Affordability Index 2023 by the institute, the median price for a home in Singapore is US$1.2 million (RM5.54 million), compared to US$1.16 million (RM5.34 million) in Hong Kong, where prices fell by 15% last year.
Sydney ranked third with houses priced at US$980,000 (RM4.51 million).
Singapore's property market has shown exceptional strength, with prices increasing by 8.6% last year and 10.6% in 2021, leading authorities to introduce new measures to mitigate the situation.
