New Reporter
10-08-23, 17:56
With Singapore rail link on the way, Johor Bahru properties in hot demand
Aug 08, 2023
[KUALA LUMPUR] The number of property transactions in Johor Bahru – the southernmost city in Malaysia – is on the rise, as buyers hunt for deals ahead of the opening of a new railway shuttle link with Singapore in three years’ time.
The Johor Bahru-Singapore rapid transit system (RTS), as the project is called, is a 4 km cross-border service that’s on track to be completed by the end of 2026, with as many as 10,000 commuters moving in both directions per hour.
In the first three months of this year, the state of Johor had 7,497 residential property transactions worth nearly RM3.2 billion (S$947 million) – the second-highest in terms of transaction volume and value after Selangor.
Among these deals, nearly 60 per cent – or 4,307 transactions with a total value of RM2.2 billion – were residential properties in Johor Bahru, the capital of Johor.
On the whole, the number of transactions in Johor in January to March was almost 12 per cent higher than in the same quarter in 2020, just before the Covid-19 pandemic struck.
“The RTS is the biggest catalyst now,” said Chia Zi Jin, the principal of CRA Valuers and Realty Consultants. “Property developers are tapping into the positive news of the RTS and are rolling out new projects.”
According to Chia, the selling price of several new launches in the Johor Bahru city centre is currently above RM1,000 per square foot (psf).
At The Coronade Residences, a development that’s located near the RTS customs, immigration and quarantine complex, the asking price ranges from RM1,068 to RM1,315 psf.
In a report on Jul 24, RHB Research Institute senior analyst Loong Kok Wen noted that there are 11 projects in the vicinity of the new RTS station at Bukit Chagar, with asking prices of between RM1,000 and RM1,300 psf.
Jonathan Lee, the group chief executive of international real estate company Keller Williams in Malaysia, said the higher rents and sale prices in Singapore have also helped fuel demand for homes across the Causeway.
“The implementation of a steeper stamp duty in April (by the Singapore government) has driven more Malaysians and expats working in Singapore to consider relocating to Johor Bahru,” he added.
Loong shared the same view, noting that rentals for condominiums in Singapore grew 32 per cent year on year in the first three months of 2023.
“This is on par with the average prices of condominiums in the Kuala Lumpur city centre area.” she added.
KGV International Property Consultants (Johor) executive director Samuel Tan said the areas near the Johor Bahru city centre and Iskandar Puteri are the most preferred locations for foreign buyers.
In the first quarter of this year, a total of 2,077 residential units were launched in Johor, with 62 per cent (or 1,288 units) in Johor Bahru.
“(The units at) most launches are priced between RM500,000 and RM700,000 each. There are also some luxury offerings targeting rich individuals or foreign buyers priced at RM1 million and above,” he said.
In Malaysia, foreigners are only allowed to purchase condos that are priced RM1 million and above in Johor. For landed homes, the price must be at least RM2 million.
On the outlook of Johor Bahru’s property market, consultants and analysts are optimistic that the growth momentum of transactions and prices will continue to trend upwards in the coming months.
Johor recently announced that it had secured RM70.6 billion worth of foreign direct investments in 2022 – the highest amount among all states in Malaysia.
Other than investments in the manufacturing sector, RHB’s Loong said that Johor is also seeing more investments in data centres. Local media reported that Johor will receive RM17 billion worth of new investments in data centres in 2024.
Tan from KGV said the improved connectivity within Johor Bahru – thanks to the RTS, the Gemas-Johor Bahru electrified double tracking project, and the upcoming Iskandar Malaysia bus rapid transit – will be an attractive selling point.
There is also the question mark of whether the High Speed Rail (HSR) link between Singapore and the Malaysian capital Kuala Lumpur could be revived at some point, which analysts say would be a boon for property prices in Johor Bahru and the surrounding areas.
In April this year, the Malaysian government expressed an interest to revive the multi-billion dollar HSR development. Last month, it sought proposals from private companies for the 350 km rail line that seeks to reduce travel time between Singapore and Kuala Lumpur to 90 minutes, compared to four to five hours by car.
A bilateral agreement for the HSR was axed in 2021 after both sides failed to reach a mutual agreement on several proposed changes.
“If the HSR does eventually go ahead, it will be a great bonus,” said Tan.
https://www.businesstimes.com.sg/international/asean/singapore-rail-link-way-johor-bahru-properties-hot-demand
Aug 08, 2023
[KUALA LUMPUR] The number of property transactions in Johor Bahru – the southernmost city in Malaysia – is on the rise, as buyers hunt for deals ahead of the opening of a new railway shuttle link with Singapore in three years’ time.
The Johor Bahru-Singapore rapid transit system (RTS), as the project is called, is a 4 km cross-border service that’s on track to be completed by the end of 2026, with as many as 10,000 commuters moving in both directions per hour.
In the first three months of this year, the state of Johor had 7,497 residential property transactions worth nearly RM3.2 billion (S$947 million) – the second-highest in terms of transaction volume and value after Selangor.
Among these deals, nearly 60 per cent – or 4,307 transactions with a total value of RM2.2 billion – were residential properties in Johor Bahru, the capital of Johor.
On the whole, the number of transactions in Johor in January to March was almost 12 per cent higher than in the same quarter in 2020, just before the Covid-19 pandemic struck.
“The RTS is the biggest catalyst now,” said Chia Zi Jin, the principal of CRA Valuers and Realty Consultants. “Property developers are tapping into the positive news of the RTS and are rolling out new projects.”
According to Chia, the selling price of several new launches in the Johor Bahru city centre is currently above RM1,000 per square foot (psf).
At The Coronade Residences, a development that’s located near the RTS customs, immigration and quarantine complex, the asking price ranges from RM1,068 to RM1,315 psf.
In a report on Jul 24, RHB Research Institute senior analyst Loong Kok Wen noted that there are 11 projects in the vicinity of the new RTS station at Bukit Chagar, with asking prices of between RM1,000 and RM1,300 psf.
Jonathan Lee, the group chief executive of international real estate company Keller Williams in Malaysia, said the higher rents and sale prices in Singapore have also helped fuel demand for homes across the Causeway.
“The implementation of a steeper stamp duty in April (by the Singapore government) has driven more Malaysians and expats working in Singapore to consider relocating to Johor Bahru,” he added.
Loong shared the same view, noting that rentals for condominiums in Singapore grew 32 per cent year on year in the first three months of 2023.
“This is on par with the average prices of condominiums in the Kuala Lumpur city centre area.” she added.
KGV International Property Consultants (Johor) executive director Samuel Tan said the areas near the Johor Bahru city centre and Iskandar Puteri are the most preferred locations for foreign buyers.
In the first quarter of this year, a total of 2,077 residential units were launched in Johor, with 62 per cent (or 1,288 units) in Johor Bahru.
“(The units at) most launches are priced between RM500,000 and RM700,000 each. There are also some luxury offerings targeting rich individuals or foreign buyers priced at RM1 million and above,” he said.
In Malaysia, foreigners are only allowed to purchase condos that are priced RM1 million and above in Johor. For landed homes, the price must be at least RM2 million.
On the outlook of Johor Bahru’s property market, consultants and analysts are optimistic that the growth momentum of transactions and prices will continue to trend upwards in the coming months.
Johor recently announced that it had secured RM70.6 billion worth of foreign direct investments in 2022 – the highest amount among all states in Malaysia.
Other than investments in the manufacturing sector, RHB’s Loong said that Johor is also seeing more investments in data centres. Local media reported that Johor will receive RM17 billion worth of new investments in data centres in 2024.
Tan from KGV said the improved connectivity within Johor Bahru – thanks to the RTS, the Gemas-Johor Bahru electrified double tracking project, and the upcoming Iskandar Malaysia bus rapid transit – will be an attractive selling point.
There is also the question mark of whether the High Speed Rail (HSR) link between Singapore and the Malaysian capital Kuala Lumpur could be revived at some point, which analysts say would be a boon for property prices in Johor Bahru and the surrounding areas.
In April this year, the Malaysian government expressed an interest to revive the multi-billion dollar HSR development. Last month, it sought proposals from private companies for the 350 km rail line that seeks to reduce travel time between Singapore and Kuala Lumpur to 90 minutes, compared to four to five hours by car.
A bilateral agreement for the HSR was axed in 2021 after both sides failed to reach a mutual agreement on several proposed changes.
“If the HSR does eventually go ahead, it will be a great bonus,” said Tan.
https://www.businesstimes.com.sg/international/asean/singapore-rail-link-way-johor-bahru-properties-hot-demand