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Rapid Transit System to boost Johor property market
The Rapid Transit System will link the Woodlands North station on the Thomson-East Coast Line to Johor’s Bukit Chagar.
Analysts expect interest in Johor Bahru properties to increase with news that Malaysia and Singapore may sign a bilateral agreement for the Rapid Transit System (RTS) in 2017, reported Channel NewsAsia.
Peter Ezekiel, who travels across the causeway daily for work, welcomed the news. The 46-year-old lawyer opted to rent a Johor Bahru house while waiting for the completion of his new flat in Singapore.
While renting a home in Johor Bahru is cheaper, Ezekiel has had to contend with traffic congestion daily. He may, however, continue renting or even purchase a property in Johor in the future now that Singapore and Malaysia are moving ahead with the RTS.
“I’m looking at safety, convenience and the proximity to Singapore. These three factors are to me, of course comfort – you want a certain. These are the three to four factors that I have in mind when I’m looking at a rental property. However if I’m looking for an investment to buy, then I’ll be looking at potential capital gains,” he said.
But the relative weakness of the Malaysian Rinngit has been holding him back from buying a property, despite the expected improvement in transport links.
Promising an easier time crossing the border, the RTS will link the Woodlands North station on the Thomson-East Coast Line to Johor’s Bukit Chagar.
Analysts reckon that major economic activity is needed to stimulate Johor’s property market, especially around the area where transport links to the city-state will be improved.
“It’s very close to Bukit Chagar. Just within a kilometre of it we have got some malls, we have got some low density residential,” said Ku Swee Yong, CEO of International Property Advisor. “We haven’t heard of many business investments announcements, such as let’s say, manufacturers within 30 kilometres who are hiring many staff.”
As such, analysts have cautioned investors to watch the market closely before they invest their money into any developments across the causeway.
“They need to do a lot of due diligence checks,” explained Chris Koh, Director at estate agency Chris International.
“We’re talking about ensuring that they’re buying a property there – whether the developer is a sound developer, one with a reputation to complete their projects. One has to be also familiar with Malaysia law – the property laws behind buying a property there,” he added.
Romesh Navaratnarajah, Senior Editor at PropertyGuru, edited this story. To contact him about this or other stories, email romesh@propertyguru.com.sg
