The move to scrap the massive S$370 billion High-Speed Rail project has put some property buyers in Singapore on notice, with quite a few speculators who invested in Jurong lamenting the loss of potential profit in the rental.
While Dr. Mahathir’s move to put this project on ice has had a bit of a chilling effect on Singapore, Johor’s property market might actually be buoyed by this sudden U-Turn of events simply because the HSR isn’t the only rail project between Singapore and Malaysia.
Sharp observers might have noticed that a new Johor Baru – Singapore Rapid Transit System (RTS) has been mooted, hot on the heels of the HSR cancellation.
The RTS, set to open in 2024, will link Woodlands North to the heart of JB. This is great news for those who are looking to invest in Johor, as multiple property projects are in the vicinity of the Bukit Chagar Station.
Properties in the vicinity will have growing demand, and with supply tapering off in the future, healthy rentals are projected for the area. Existing Projects like Setia Sky 88, and Princess Cove, will be highly sought after.
This does not even take into account upcoming projects like the TriTower Residences or Paragon Suites, which will be connected to Singapore’s Thomson-East Coast line via the RTS.
Future developments like the Ibrahim International Business District will be within walking distance from this development, further elevating the potential value of this and other projects in the area.
The convenience in Johor Bahru’s central district is staggering. Within the city, there are multiple mega malls that provide food, shopping, and entertainment options.
An example would be the popular Johor Baru City Square. This 7 floor, 300 unit mall is massive, and chockfull of F&B options, a cinema, and a local convenience store.
The newly built JB Paradigm Mall also boasts Johor Baru’s very first ice-skating rink. This 1.3 million square foot mall boasts 7 floors of retail and dining options, with a supermarket. Finally, Johor Baru is home to Ikea’s largest store in South-east Asia! This particular Ikea will be retailing over 8000 products, and have up to 54 room sets.
Fringe properties are also looking up. Places like Kota Tinggi and Kluang also benefit from this expanded transport options. Kota Tinggi, for example, is only 50 minutes away by car from Johor Baru. Investors have picked up on this, and property sales in the area have picked up. Kluang is only a little further away, but transactions in the area have been brisk as well.
The winds of change have brought a new lift to Johor, and even with the cancellation of the HSR, properties in the Johor region, as well as the JB region, have seen a lift in value and positive outlook.
As long as the RTS project stays on track, Johor will have plenty of value for property investors!
Interested to invest? Join us at the Malaysia Home and Investment Expo on the 23 to 24 June 2018.