Why Singapore Capital Is Crossing the Causeway

Cooling measures at home, a strong currency and a five-minute train on the horizon: the conditions pushing Singapore-based buyers into Johor are structural, not cyclical.

By the Stone Group Development advisory desk · 3 July 2026 · 4 min read

Three forces, one direction

The first force is policy. Since April 2023, Singapore citizens pay 20% Additional Buyer's Stamp Duty on a second residential property and 30% on a third; for foreigners buying in Singapore the levy is higher still. Capital that would once have bought a second Singapore condominium now looks outward. The second force is the exchange rate: a strong Singapore dollar against the ringgit means Singapore-based earners buy Malaysian property at a persistent discount. The third is connectivity — the RTS Link, targeted to carry passengers in 2027, converts Johor from 'another country' into a commutable district of a twin-city economy.

The evidence on the ground

The shift is visible in transaction records. Media reporting on a flagship development beside the future Bukit Chagar station found around 40% of its buyers were Singaporean, and its developer logged roughly five times as many transactions in April–September 2023 as in the same period a year earlier — immediately following the ABSD increase. Analysts are split on where the next wave lands: some expect Malaysians working in Singapore to dominate, others point to Singaporean retirees and investors seeking vacation or yield properties in established zones like Iskandar Puteri. Both readings agree on the direction of travel: cross-border ownership is normalising.

A practical playbook for Singapore-based buyers

Executing well matters more than timing. Malaysian banks typically finance non-residents up to about 70% of value. Budget the true costs: a flat 8% stamp duty on residential purchases from January 2026, roughly 1–1.5% in legal and processing fees, RPGT of 30% if you sell within five years (10% from year six), and about 30% tax on net rental income. Choose the zone deliberately — Medini's exemption from Johor's RM1 million foreign minimum keeps entry capital light — and treat rental management as part of the purchase decision, not an afterthought. For those planning longer stays, qualifying property purchases can anchor an MM2H residency application, and much of the process can be handled remotely through a Malaysian lawyer with power of attorney.

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*Published 3 July 2026. Tax rates, ABSD tiers and financing terms are as published by the relevant authorities and lenders as at the dates cited and can change; exchange-rate advantages can reverse. Verify your position with licensed advisers in both jurisdictions. General information only — not investment, legal or tax advice.