“So far staying here has triggered good vibes, I get a nice sea view and it’s very comfortable,” said Ong, who also owns a private condominium unit on Singapore’s Farrer Road.
“I think there is a possibility we get returns – from both capital appreciation and rental yield – but I’m not too stressed about that,” he added.
However, buying Johor property is not without its challenges for Singaporean buyers.
Some buyers are currently in a legal dispute with a Johor condominium developer over their ownership status, while others are suing Chinese developer Country Garden for fraud and misrepresentation.
Some Singapore investors who bought Johor properties earlier have previously also spoken about their regrets, saying that they did not achieve capital gains for various reasons, such as an oversupply of homes, difficulty in renting out their units and the continuing weakening of the ringgit against the Singapore dollar.
Meanwhile, financial influencer Loo Cheng Chuan, a Singaporean who recently purchased a RM2 million semi-detached home in Mount Austin, has a different take on the issue.
The former chief executive of Singtel Digital Media is of the view that Singaporeans who wish to buy property across the Causeway should be wary of treating the purchase as an investment and that they must be ready to write off capital depreciation from the property value.
“For one simple reason, the powerful Singapore dollar will appreciate against (most) of these currencies and over time you’ll find that even if the house value has gone up, the appreciation is somewhat discounted by the Sing dollar strengthening,” said Loo.
On the other hand, he sees value being derived from improving “quality of life”. Living in JB has allowed him to purchase a landed property of a significant size for him, his wife and his three children to enjoy as a weekend home.
The property analyst Tan outlined that the high housing costs in Singapore have become a push factor for some to purchase homes across the Causeway.
“In Singapore, the (monthly) rental for a (two-room) HDB flat could cost (more than) S$1,000 (US$732). This is equivalent to about RM3,500. For RM3,500 they can easily afford (a monthly mortgage) for a landed residential house in Johor and they will have a more leisurely lifestyle, larger space,” said Tan.
Ong added that a key reason why he has chosen to buy property in JB is because of cost of living pressures in Singapore.
He explained that he cannot afford to buy a retirement home given Singapore’s “significantly higher” property prices and he even buys his groceries in JB.
Loo echoed similar sentiments, pointing out that the tide of rising asset prices is a global phenomenon, and that both Singaporeans and Johoreans should do their best to adapt.
