Is it worth buying a RM1mil condo in Johor Bahru for investment?

Newly launched condominiums in Johor Bahru near RTS are selling beyong RM 1k psf. It is better to go for the leftover units launched 5-7 years ago as their quality is likely better and psf are lower. Generally, freehold landed properties are a more defensive buy in Johor compared to condominiums as local demand is high for the former.

Foreginers vs local pricing which can be half priced. 1million minimum and usually in undeveloped areas, 99 years leasehold, rather high interest rate and down payment. 'encouraged' to buy condo over landed. poor workmanship and lack of maintainence. local price maybe just ok buy cut carrot price of foreigners is simply throwing money into the sea regardless of rts or hsr completion.

If is for investment, i will say No. if is for retirement, then Yes, but no need pay 1 million for condo.

DISCLAIMER: Not property investment advice, DYODD

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Dear RS,

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Back in 2019, many singaporeans (myself and my friends included) were thinking of investing in JB properties. However, today, JB is met with an oversupply of properties and I thanked myself and my friends for not going ahead with it.

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Today, as a property agent, I now understand why Singaporeans tend to be staying away from JB property market.

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1. Property transactions - Property transactions have been known to not be fully transparent in Malaysia. Data may be incomplete and you may be missing out on important data such as last transacted price near your area etc
2. Agents in JB - I heard (can't confirm) that most property agents in JB are salesperson for the developer. Hence, when they advice you, they tend to be biased towards that particular developer rather than other products that may be better and not disclosed.
3. Currency risk - Today, RM has hit 3.44 (source: B-point money changer). Just 6 months back, RM was 3.33. Will it hit an all-time high again? I can't say, but you should know it yourself.
4. Misc risk - safety, burglary, government future plans, taxes etc

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To conclude, there's a reason why many foreigners are saying that Singapore is a 'property investment haven'. Do look at your own area and consider strongly first before looking elsewhere. Singapore has an excellent land registration system, strong property laws that protect the consumer (or investor). Yes, taxes are higher, but it is due to government interventiosn that property market in Singapore are less likely to crash in comparison to other countries.

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All the best!

Larry Mah