RTS Benefiting the Property MTarket in Johor
The RTS Link is expected to act as a stimulant of sorts to spur more interest in the Johor Bahru property market. Properties within a radius of 5 km from the station will attract a lot of attention from investors. Residential houses including service apartments have actually seen better pick-up around the proposed station site since the last 2 years. Those that have enjoyed such effects include Tri Towers, Twin Towers, Suasana and SKS Pavillion. Others which will see increased demand include those along Jalan Bukit Meldrum like R&F Princess Cove Residences, Skysuites, Sky Habitat and V-Summerplace.
Connectivity between Johor and Singapore will be enhanced. The “effective distance” between the two countries will be shortened once the congestion issue is resolved. A few hours trip via the existing causeway during the peak hour will become as short as 3.6 minutes.
Residential developments in JB especially in the city centre within close proximity will attract demand from various groups i.e. Malaysians working in Singapore, Singaporeans capitalising the relatively lower cost of living in JB and investors.
Houses and housing lands nearby are likely to be acquired and rezoned for commercial use. Imminently are Kim Teng Park and Serene Park which are in the immediate neighbourhoods. The success of the RTS Link will in the long run necessitate an urban renewal exercise within the CBD of JB. This is in line with the transformation plan of the CBD mooted by IRDA.
Commercial developments such as retail and office will get a boost in demand as a result of better connectivity. Some companies in the republic down south might set up businesses in JB to capitalise on its lower cost base once the nightmarish congestion on the causeway is resolved. Nevertheless, other factors such as government policies and socio-econ-political dynamics will come into play in attracting these businesses.
Shopping centres nearby such as JB City Square, JBCC Komtar, R&F Mall and Galleria Kotaraya will see increased footfalls as many passengers alighting from the trains are expected to shop here. Coronation Square when completed will also gain traction.
Purpose-built offices are likely to benefit with relocation of offices to spaces near the station. It would not be unrealistic to anticipate some office demand from Singapore to JB. The COVID-19 pandemic has caused many to see the need to decentralise their activities within a particular locality. With improved connectivity, certain office works can be relocated from a more costly Singapore to a cheaper city like JB. Buildings that will gain from this phenomenon include JB City Square, JBCC Kotaraya, Menara Landmarks and offices to be completed within Coronation Square.
With improved last mile connectivity, the spillover effects will be felt in the other satellite and suburban areas in Iskandar Puteri, Tampoi, Skudai, Tebrau and Ulu Tiram as well as Pasir Gudang. What is important is the availability of connecting modes of transportation such as taxis, stage and shuttle buses and e-hailing vehicles to these destinations within a reasonable time and cost. In preparation of all these demands, the BRT will be rolled out by IRDA connecting this major transportation hub to all the outlier areas.