The RTS Link's rail viaduct and trestle bridge are now taking shape across the Strait of Johor. - ST
JOHOR BARU: When Chinese developer R&F launched its second phase of sales for the Princess Cove condominium in Johor Baru in 2018, it sold an estimated 30 per cent of its nearly 3,800 apartments by the end of the year.
The company expected sales momentum to continue for the project, which is less than 10 minutes away from the JB checkpoint on foot.
But the Covid-19 pandemic struck, forcing the closure of international borders, including the land crossings between Johor and Singapore.
“During the pandemic, there was some despair, especially when the borders were closed. (Property) prices also fell to lower points,” said R&F deputy general manager Xu Jie.
But in 2023, sales for the project picked up significantly, especially during the April to September period, which saw five times more transactions than in the same period in 2022, Xu said.
He added that the heightened interest is largely due to the Rapid Transit System (RTS) Link, with its rail viaduct and trestle bridge now taking shape across the Strait of Johor.
“Just taking a glance at the sea, the RTS’ construction is clearly visible,” said Xu, adding that the obvious progress is a point of assurance for buyers.
The RTS Link is a 4km rail shuttle service set to be operational by end-2026, with a capacity to carry 10,000 passengers every hour in each direction between Woodlands North MRT station in Singapore and Bukit Chagar in JB.
Construction of the rail link, which began in November 2020, crossed at least the 50 per cent mark on both sides by November 2023.
It is expected to ease congestion plaguing the Causeway, which is used by hundreds of thousands daily.
That optimism appears to be widely shared among buyers of properties around the RTS station, which is being built next to the current immigration complex in JB.
Xu said around 40 per cent of Princess Cove buyers are Singaporeans, many of whom were keen to invest in JB properties after Singapore hiked the additional buyer’s stamp duty again in April, making it pricier to own two or more properties in the Republic.
The next biggest groups of buyers are from Malaysia, China and Taiwan, he added.
“We are in a window of opportunity,” said Xu.
“Property prices will only get higher the closer it gets to the completion of the RTS.”
Also well received among home buyers is MBW City, a mixed-development project a seven-minute drive or shuttle-bus ride from the RTS station, said Datuk Jacky Ker, executive director of property agency Premier Plus.
He said prospective buyers have been lined up for 540 available units at this preliminary stage, with another 1,000 on the wait list.
SKS Group also saw two of its older high-rise projects, TriTower and Twin Tower Residences, sell out in early 2023. Both are within five minutes’ walk from the RTS station.
Wuu Lai Choo, 63, said she started researching properties near the RTS station in October.
The Singaporean accounts assistant said: “I heard that the new (RTS) train will be connected to the MRT in Woodlands, and thought it would make it very convenient to travel to JB.”
She plans to split her days between JB and Singapore after buying a unit.
It took a single weekend in December for Alan Chua and his wife to decide on buying a three-bedroom freehold apartment in MBW City for close to RM700,000 (S$199,000).
The 57-year-old businessman already owns 11 other weekend homes and investment properties in Johor. “(The purchases) have turned out well. Capital appreciation has been good,” he said.
To Chua, the only way is up for JB. “Malaysia’s government looks to be enjoying some stability for the next few years. The special economic zone (SEZ) is coming up. Johor’s Sultan is becoming the king – things will not go wrong,” he said.
Malaysia and Singapore plan to sign a memorandum of understanding in January 2024 on the SEZ, set to be located in Johor’s Iskandar region, some 20km away from the Causeway.
The zone aims to improve the flow of goods and people between both sides of the Causeway.
For years, Johor’s property overhang – where units remain unsold for more than nine months after completion – has surpassed the rest of Malaysia.
Official data shows that the state had 6,040 unsold residential units by mid-2022.
The number went down to 4,717 by the first half of 2023.
Given the optimism surrounding the RTS Link and the proposed Johor-Singapore SEZ, Johor housing and local government committee chairman Jafni Shukor said resolving the state’s property glut issue in the next three years is achievable, reported Sinar Harian in November.
Nicholas Mak, chief research officer of property platform Mogul.sg, noted that Johor, including the Iskandar region, has been a popular destination for Singaporean property buyers over the past 15 to 20 years.
But he said buyers should consider the risks when they purchase assets denominated in foreign currencies, even if the exchange rate is favourable to them now.
“Some people may not consider such things. It’s a bit like going to swim in a river full of piranhas while closing your eyes to the danger,” he said.
He added that Singaporeans considering working or living in Malaysia long term should also look for the appropriate permits.
Tan Wee Tiam, who heads the research and investment services department at JB-based KGV International Property Consultants, said he expects demand for both residential and commercial properties to increase as the traffic bottleneck is mitigated with the completion of the RTS.
But he cautioned that the authorities should be judicious in approving new developments so that supply is paced to meet demand.
“The problem arises only when all developers rush in and overdevelop,” he said. “That was what happened in the last boom from 2012 to 2014, when every developer ventured into high-rise condominiums or serviced apartments.”
Singaporean Cary Lim, who has been living in a rented bungalow in Iskandar Puteri, which is nearer to the Second Link in Tuas, does not see the appeal of living near the RTS station.
He has been paying around RM9,000 a month for his house since December 2022, while renting out his condo in Singapore for $4,700 a month.
“My young family will not be very motivated to live near the RTS Link after it’s built,” said the 34-year-old entrepreneur, adding that his family prefers the quieter life near the Second Link.
There are also more international schools nearby, which his two-year-old son may attend in the future, he added.
More importantly, the Second Link is less busy, making it more convenient for the family to return home regularly for social gatherings. - The Straits Times/ANN
