Explore how the upcoming RTS Link will influence residential and commercial property values in Johor Bahru, focusing on areas near the stations.
Transportation has long been a cornerstone of urban development, shaping the very fabric of cities across the globe. From the ancient trade routes that birthed bustling markets to the modern transit systems fuelling economic hubs, the way people and goods move directly influences how cities grow and function.
The Silk Road from the second century BCE, for example, not only linked Asia, the Middle East, and Europe but also became a vital artery for trade, fostering the exchange of goods, ideas, and cultures that enriched civilizations for centuries.
Similarly, today’s cities thrive on networks of roads, railways, and airways that connect communities, enabling commerce and enhancing quality of life. As urban centers evolve, the relationship between transportation and city planning continues to define their success on the global stage.
Johor Bahru–Singapore RTS Link – A game-changer for Johor’s property market
The long-awaited Johor Bahru–Singapore Rapid Transit System (RTS) Link is a transformative infrastructure project poised to redefine cross-border connectivity between Malaysia and Singapore. Beyond its primary function of easing the daily commute, the RTS Link is set to leave a significant imprint on Johor Bahru’s property market. From residential to commercial real estate, the ripple effects of this development promise increased demand, higher property values, and broader economic benefits.
The RTS Link that spans 4km and connects Bukit Chagar in Johor Bahru to Woodlands North in Singapore, is designed to dramatically cut down travel time—to just 5 minutes— between the two regions. This enhanced connectivity is expected to fuel demand for residential properties in Johor Bahru, particularly among Malaysians working in Singapore and Singaporeans seeking more affordable housing options.
As of April 2023, the project was 50% completed, and it is expected to begin operations by the end of 2026. Once completed, the RTS is estimated to ferry 10,000 passengers per hour each way, helping to ease the heavy traffic on the Johor-Singapore Causeway.
According to Maggie Ng, Chief Executive Officer of Berinda Group, The RTS Link connecting Johor Bahru to Singapore is expected to significantly influence property values in Johor Bahru and the surrounding areas.
“The RTS will make commuting between Johor Bahru and Singapore more convenient, reducing travel time and increasing accessibility. This could drive up demand for residential properties in Johor Bahru, particularly among the commuters working in Singapore and Singaporeans seeking for housing options,” says Ng.
The Spillover Effect
According to Ng, the RTS Link will likely have a substantial impact on cross-border economic activities between Singapore and Johor, which in turn will significantly influence every aspect of Johor’s real estate market.
Higher Demand for Housing
“With easier access to Singapore, there will likely be an increase in demand for residential properties in JB, especially from Singaporeans and expatriates looking for housing options in Malaysia. This demand could push up prices and increase rental yields in areas near RTS station as well as in townships within a 10km radius, particularly for condominiums and serviced apartments near the stations and major transportation hubs.”
With anticipation of long-term growth, speculative buying may increase, especially during the RTS construction phase. This can result in short-term spikes in property prices in popular neighbourhoods, though actual price sustainability will depend on broader economic conditions.
Higher Rental Yields
Improved connectivity will attract both local and foreign investors, who may seek to capitalize on rental demand from commuters working in Singapore but living in Johor Bahru. This could lead to higher rental yields.
Commercial and Retail Development
The RTS will likely spur commercial and retail developments in surrounding areas. With more business activity and consumer traffic, property values for commercial real estate are expected to rise. This will also benefit nearby residential areas due to improved amenities and job opportunities.
Infrastructure and Development Boost
As the government and private sectors invest in infrastructure and development projects related to the RTS, areas surrounding Johor Bahru could experience a ripple effect of growth. This includes new townships, improved transportation networks, and enhanced public facilities, which can further boost property values.
Expansion of Development Zones
Areas outside of Johor Bahru, such as Iskandar Malaysia, are likely to benefit from the enhanced connectivity. The RTS may accelerate the expansion of development zones, attracting more investors and developers to build residential and commercial projects beyond Johor Bahru’s city center. This could lead to price appreciation in currently underdeveloped areas, creating new growth corridors for Johor’s real estate market.
Other areas currently rapidly developing are Taman Ponderosa and Taman Molek, located merely 15 minutes from CIQ Complex and city centre; and highly accessible via Eastern Dispersal Link, Tebrau Highway, Pasir Gudang Highway and North-South Highway.
These freehold townships consisted of semi-detached, terrace, apartment and condominiums such as Ponderosa Vista, Ponderosa Lakeside, Ponderosa Green, and Ponderosa Villa, Molek Pine Luxury apartment and Molek Hub Shop Office.
What does the future look like for Johor Property Market?
PropertyGuru Malaysia recorded a 29% surge in Johor Bahru’s property demand index after Malaysia entered the endemic phase in April 2022. A trend that persists as the RTS project reaches 50% completion in 2023, where a 17% increase in residential property demand was observed. Industry experts predict property prices will rise even further as the RTS nears completion.
“The outlook for Johor’s property market over the next 5 to 10 years is promising, largely driven by ongoing developments such as the RTS Link, Iskandar Malaysia, and enhanced government infrastructure initiatives. However, several factors will influence the market, including economic conditions, population growth, and regional demand,” Ng reiterates.
“Residential, commercial, and industrial properties are all poised to benefit, with price appreciation expected in prime areas, especially near infrastructure hubs. However, careful management of supply and demand, government policy support, and a focus on balanced development will be key to sustaining long-term growth and avoiding risks like oversupply or market volatility.”
Don’t want to miss the chance to be a part of Johor’s transformation? Check out Berinda Properties’ projects to find out more.