Investment Prospects of Properties Near the Johor Bahru-Singapore Rapid Transit System (RTS)
This article discusses the investment potential of properties located near the RTS in Johor Bahru (JB), Malaysia, focusing on current market prices, future appreciation, and specific areas of interest.
Current Market Overview
Apartment Prices Near RTS
Apartments within walking distance of the RTS are currently selling for approximately RM1,200 per square foot. This price point is significant, raising questions about future price appreciation.
Reasons for Price Increase
The rapid increase in apartment prices near the RTS is attributed to the convenience of public transportation. The RTS is expected to increase the flow of people in the area, making properties more desirable. Due to the accessibility, the price of housing has more than doubled as compared to before.
The Appeal of RTS to Singapore Workers
Attracting Commuters
A key question is whether the RTS will attract Malaysians and Singaporeans working in Singapore to live in JB.
Evidence of Demand
Recent property launches near the RTS ("po di" area) have shown that a significant portion of buyers are Malaysians working in Singapore and even some Singaporeans. This indicates a real demand for housing in this area.
Future Appreciation Potential
Comparison to Kuala Lumpur
The current price of RM1,200 per square foot is comparable to prices in Kuala Lumpur city center. Despite this, there is confidence that there is still room for appreciation in the area.
Factors Supporting Appreciation
Several factors support this view:
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Data Centers: The establishment of data centers in Johor Bahru is expected to increase the population in the area.
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Commuting Population: A large percentage (approximately 70%) of JB residents work in Singapore, thus the improved commute of the RTS makes living in JB while working in Singapore more appealing.
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Fixed Transportation: The fixed schedule of the RTS makes commuting more convenient and predictable.
Recent Sales Success
Recent property launches, such as the Gen Rise project, have seen rapid sales (900+ units in two days at RM1,200 per square foot), reinforcing the belief in future price increases.
Recommended Areas for Investment
Upcoming Projects
In March 2025, another project is expected to launch that is even closer to the CIQ (Customs, Immigration, and Quarantine) than the R&F properties.
Walking Distance to CIQ
The proximity to the CIQ is a significant advantage, as few projects currently offer direct walking access, with R&F and Majestic Gen Rise being notable examples.
Contact Information
For those interested in learning more about upcoming projects, they can private message for more details.