Assessing the potential rental yield is crucial when considering investing in a condo. Rental yield refers to the annual rental income as a percentage of the property’s purchase price. In Singapore, condo rental yields can vary greatly depending on factors such as location, property condition, and market demand. Generally, areas with high rental demand, such as those near business districts or educational institutions, tend to offer better rental yields. To gain a better understanding of a particular condo’s rental potential, conducting thorough market research and seeking guidance from real estate agents are valuable steps to take. Looking into reputable sources like Singapore Condo can also provide valuable insights.
Singapore’s proposed Johor-Singapore Special Economic Zone (JS-SEZ) is set to benefit industries such as data centres, electronics, and renewable energy, according to DBS research. The JS-SEZ aims to facilitate cross-border economic activities between the two states and was first announced last October during the 10th Singapore-Malaysia Leaders’ Retreat. A memorandum of understanding was signed in January to work on a full-fledged agreement for the zone by December. Located in Malaysia’s Iskandar region, the state government has proposed the zone to cover six districts with a total area of 3,505 sq km.
Initiatives currently being explored for the zone include special tax arrangements, training incentives, passport-free clearance, and joint promotion events. The zone is expected to benefit the data centre sector, which will, in turn, benefit firms in technology services. Johor is the fastest-growing data centre in Southeast Asia according to DC Byte’s 2024 Global Data Centre Index. Johor’s data centres have grown from a baseline of less than 10MW of live supply to over 1.6GW in the last three years, bolstered by Singapore’s moratorium on data centres since 2019.
The state’s electrical and electronics sector, identified as one of the 16 priority industries in the Progress Johor 2030 economic master plan, is also anticipated to benefit from the JS-SEZ. Johor’s electronics manufacturing sector is the third largest in Malaysia, trailing behind Penang and Selangor. Renewable energy has been identified as a key area of cooperation and establishing the zone could deepen collaborations already in place, such as the two-year electricity import trial between Singapore and Malaysia.
As activity in these different sectors picks up, the JS-SEZ will likely stimulate more demand for industrial properties in Johor. With the completion of the Johor Bahru-Singapore Rapid Transit System (RTS) at the end of 2026, connectivity between Johor and Singapore will get a significant boost. The RTS will cut travel time between the two cities to as little as 15 minutes, paving the way for faster and more efficient travel.
The JS-SEZ offers the opportunity to leverage the strengths of both Singapore and Johor. One of Johor’s strengths is space, with the proposed zone being four times the size of Singapore and roughly equivalent to the combined area of China’s Shenzhen and Hong Kong. Additionally, Johor also has favourable demographics with a faster-growing population and a more affordable labour force compared to Singapore.
The success of the JS-SEZ will also depend on its ability to tackle issues currently faced by Singaporean businesses operating in Johor. Businesses highlighted manpower problems, challenges in the movement of goods between Singapore and Johor, and fragmented investment processes in Malaysia. To improve cross-border movements, businesses suggested special immigration lanes, automated clearance using biometrics, and the high-speed rail to KL. Johor has taken steps to address fragmented investment processes by establishing the Invest Malaysia Facilitation Centre, a one-stop centre for investment-related matters. Businesses have also suggested a joint investment promotion agency and a business platform to facilitate collaboration and networking opportunities for companies entering Johor.