New Reporter
24-01-24, 09:53
Johor Bahru-Singapore RTS Link will not be value-destructive for Singapore property
Leslie Yee
Jan 24, 2024
LURED by cheaper costs of goods and services, many Singapore residents head across the Causeway to visit Johor Bahru, the capital of Johor state, and other parts of Malaysia.
Many Malaysians who work here also commute to and fro by land frequently. Unsurprisingly, there are often massive jams at both the Woodlands and Tuas Checkpoints.
However, a game changer is on the horizon, namely the Johor Bahru-Singapore Rapid Transit System (RTS) Link.
The four-carriage RTS Link – a 4-km cross-border rail shuttle service – which connects the Woodlands North MRT station in Singapore and the Bukit Chagar station in Johor Bahru reached 65 per cent completion as at end-2023. It is expected to begin operations by December 2026.
The RTS Link can serve 10,000 people per hour per direction. The train journey time is estimated at about five minutes.
As the immigration facilities of Singapore and Malaysia will be co-located at both stations, passengers only need to clear the immigration authorities at departure.
In short, commuting between Singapore and Johor Bahru could become much easier in the future.
If travel via the RTS Link is a breeze, could Singapore property suffer from many people choosing to live, work and play in Johor Bahru instead of Singapore?
Enormous savings for Singapore-based businesses and/or individuals can be reaped from using real estate in Johor for office premises, warehouses, industrial facilities, homes and healthcare facilities, among others.
Possibly, I am an optimist on Singapore real estate. I do not believe that demand for and value of Singapore real estate will be adversely affected by the RTS Link shifting demand for Singapore real estate to Johor.
https://www.youtube.com/watch?v=OwN9aqA69pM
Impact on businesses
First, better transport connectivity between Singapore and Johor Bahru can help draw new businesses to set up shop in Singapore and businesses who are here to expand.
A business may welcome housing staff in both Singapore and Johor Bahru. The office space in Singapore, with its much higher rent, allows a business to locate staff in the heart of a major international business and financial centre.
The Singapore operations can be complemented by nearby cheaper office space in Johor Bahru, which is easily accessible from Singapore. The Johor Bahru space can possibly house some support and training functions or serve as a back-up office for disaster recovery.
With warehouses and industrial facilities, businesses may like to locate facilities in Singapore for the easy access to Singapore’s busy port and airport as well as Johor where costs are lower and land is abundant.
The strength of a combined Singapore and Johor offering to businesses will be further enhanced should the Johor-Singapore Special Economic Zone (JS-SEZ) become reality soon. A JS-SEZ can pave the way for improved cross-border flows of goods and people, as well as increased investment.
Second, easy connectivity between Singapore and Johor Bahru could benefit the tourism and the meetings, incentives, conferences and exhibitions (Mice) sectors here.
https://i.imgur.com/nZQYyxq.png
Some tourists who may skip Singapore because of high hotel room rates can stay in Johor Bahru and make day trips to Singapore using the RTS Link. Such day-trippers might patronise Singapore malls.
Crucially, selling Singapore and Johor Bahru as a package can strengthen Singapore’s draw to tourists in general as well as the Mice sector.
Tourists may have more reasons to visit and stay longer, with things to do in both Singapore and Johor Bahru. Visitors can choose to mix and match the types of accommodation available in Singapore and Johor Bahru based on preferences and budgets.
Ditto for Mice activities – the wider choice of venues and range of accommodation when Singapore and Johor Bahru work together can better attract such events against global competition.
In short, hospitality operators here can potentially serve more visitors due to the combined pull of Singapore and Johor Bahru.
Singaporeans living in Johor
Third, the economic benefits of closer Singapore-Johor Bahru connectivity may outweigh any losses to Singapore homes from Singapore residents staying in Johor Bahru to enjoy the lower cost of living there.
Living in Johor Bahru can be a more viable option for many Singapore residents once the RTS Link is operational. Children may find it easy enough to attend schools in Singapore while living in Johor Bahru. People who split their time between working remotely and at a physical office here may find living in Johor Bahru to be sufficiently convenient.
In particular, Singaporean retirees may be happy living in Johor Bahru. One could rent out one’s Singapore home and live across the Causeway, while enjoying easy access to Singapore for medical appointments, meeting family and friends, as well as running errands.
However, Singapore’s economy could get more dynamic due to closer connectivity with Johor Bahru. High business costs, which might undermine Singapore’s economic growth prospects, can be mitigated through closer Singapore-Johor cooperation.
Offering wider housing choices of living in Singapore or Johor Bahru can be a plus for drawing knowledge workers to work here. And many such workers may be happy to live in Singapore despite higher costs because Singapore is vibrant, cosmopolitan and has good public spaces.
Home price movements are not directly correlated with economic growth. Still, with a fast ageing population here, economic competitiveness matters in driving income growth and drawing talent.
Ultimately, if Singaporeans get richer because Singapore works well together with Johor in tackling a tougher global environment, the housing sector here likely benefits.
Singaporeans can choose from a range of housing options here. High quality and affordable public housing is available. This helps in building a cohesive society.
Sure, buying a landed home in land-scarce Singapore is not easily affordable to many Singaporeans. Owning landed housing that is easily reachable from Singapore can be achieved in Johor Bahru for some Singaporeans. One may get a sizeable landed home in Johor Bahru for less than the cost of a Housing and Development Board resale flat.
Perhaps, having even wider housing choices for Singapore’s population, including homes in Johor Bahru, can further strengthen social cohesion here. And a socially cohesive Singapore is attractive to long-term focused investors.
Count on Singapore’s value proposition as a premier live, work and play city receiving a boost from the success of the RTS Link.
https://www.businesstimes.com.sg/opinion-features/johor-bahru-singapore-rts-link-will-not-be-value-destructive-singapore-property
Leslie Yee
Jan 24, 2024
LURED by cheaper costs of goods and services, many Singapore residents head across the Causeway to visit Johor Bahru, the capital of Johor state, and other parts of Malaysia.
Many Malaysians who work here also commute to and fro by land frequently. Unsurprisingly, there are often massive jams at both the Woodlands and Tuas Checkpoints.
However, a game changer is on the horizon, namely the Johor Bahru-Singapore Rapid Transit System (RTS) Link.
The four-carriage RTS Link – a 4-km cross-border rail shuttle service – which connects the Woodlands North MRT station in Singapore and the Bukit Chagar station in Johor Bahru reached 65 per cent completion as at end-2023. It is expected to begin operations by December 2026.
The RTS Link can serve 10,000 people per hour per direction. The train journey time is estimated at about five minutes.
As the immigration facilities of Singapore and Malaysia will be co-located at both stations, passengers only need to clear the immigration authorities at departure.
In short, commuting between Singapore and Johor Bahru could become much easier in the future.
If travel via the RTS Link is a breeze, could Singapore property suffer from many people choosing to live, work and play in Johor Bahru instead of Singapore?
Enormous savings for Singapore-based businesses and/or individuals can be reaped from using real estate in Johor for office premises, warehouses, industrial facilities, homes and healthcare facilities, among others.
Possibly, I am an optimist on Singapore real estate. I do not believe that demand for and value of Singapore real estate will be adversely affected by the RTS Link shifting demand for Singapore real estate to Johor.
https://www.youtube.com/watch?v=OwN9aqA69pM
Impact on businesses
First, better transport connectivity between Singapore and Johor Bahru can help draw new businesses to set up shop in Singapore and businesses who are here to expand.
A business may welcome housing staff in both Singapore and Johor Bahru. The office space in Singapore, with its much higher rent, allows a business to locate staff in the heart of a major international business and financial centre.
The Singapore operations can be complemented by nearby cheaper office space in Johor Bahru, which is easily accessible from Singapore. The Johor Bahru space can possibly house some support and training functions or serve as a back-up office for disaster recovery.
With warehouses and industrial facilities, businesses may like to locate facilities in Singapore for the easy access to Singapore’s busy port and airport as well as Johor where costs are lower and land is abundant.
The strength of a combined Singapore and Johor offering to businesses will be further enhanced should the Johor-Singapore Special Economic Zone (JS-SEZ) become reality soon. A JS-SEZ can pave the way for improved cross-border flows of goods and people, as well as increased investment.
Second, easy connectivity between Singapore and Johor Bahru could benefit the tourism and the meetings, incentives, conferences and exhibitions (Mice) sectors here.
https://i.imgur.com/nZQYyxq.png
Some tourists who may skip Singapore because of high hotel room rates can stay in Johor Bahru and make day trips to Singapore using the RTS Link. Such day-trippers might patronise Singapore malls.
Crucially, selling Singapore and Johor Bahru as a package can strengthen Singapore’s draw to tourists in general as well as the Mice sector.
Tourists may have more reasons to visit and stay longer, with things to do in both Singapore and Johor Bahru. Visitors can choose to mix and match the types of accommodation available in Singapore and Johor Bahru based on preferences and budgets.
Ditto for Mice activities – the wider choice of venues and range of accommodation when Singapore and Johor Bahru work together can better attract such events against global competition.
In short, hospitality operators here can potentially serve more visitors due to the combined pull of Singapore and Johor Bahru.
Singaporeans living in Johor
Third, the economic benefits of closer Singapore-Johor Bahru connectivity may outweigh any losses to Singapore homes from Singapore residents staying in Johor Bahru to enjoy the lower cost of living there.
Living in Johor Bahru can be a more viable option for many Singapore residents once the RTS Link is operational. Children may find it easy enough to attend schools in Singapore while living in Johor Bahru. People who split their time between working remotely and at a physical office here may find living in Johor Bahru to be sufficiently convenient.
In particular, Singaporean retirees may be happy living in Johor Bahru. One could rent out one’s Singapore home and live across the Causeway, while enjoying easy access to Singapore for medical appointments, meeting family and friends, as well as running errands.
However, Singapore’s economy could get more dynamic due to closer connectivity with Johor Bahru. High business costs, which might undermine Singapore’s economic growth prospects, can be mitigated through closer Singapore-Johor cooperation.
Offering wider housing choices of living in Singapore or Johor Bahru can be a plus for drawing knowledge workers to work here. And many such workers may be happy to live in Singapore despite higher costs because Singapore is vibrant, cosmopolitan and has good public spaces.
Home price movements are not directly correlated with economic growth. Still, with a fast ageing population here, economic competitiveness matters in driving income growth and drawing talent.
Ultimately, if Singaporeans get richer because Singapore works well together with Johor in tackling a tougher global environment, the housing sector here likely benefits.
Singaporeans can choose from a range of housing options here. High quality and affordable public housing is available. This helps in building a cohesive society.
Sure, buying a landed home in land-scarce Singapore is not easily affordable to many Singaporeans. Owning landed housing that is easily reachable from Singapore can be achieved in Johor Bahru for some Singaporeans. One may get a sizeable landed home in Johor Bahru for less than the cost of a Housing and Development Board resale flat.
Perhaps, having even wider housing choices for Singapore’s population, including homes in Johor Bahru, can further strengthen social cohesion here. And a socially cohesive Singapore is attractive to long-term focused investors.
Count on Singapore’s value proposition as a premier live, work and play city receiving a boost from the success of the RTS Link.
https://www.businesstimes.com.sg/opinion-features/johor-bahru-singapore-rts-link-will-not-be-value-destructive-singapore-property