This article summarizes a discussion with Ryan from JB Properties, offering insights into the current JB property market, investment opportunities, and considerations for potential buyers.
Current Market Trends in JB
Increased Interest and Economic Growth
Interest in JB properties has significantly increased in the past 6-12 months. The economy is booming, the property market is strong, and tourism is doing well. The influx of data centers is also contributing to this growth.
Capital Land's Luxury Mall
Capital Land is planning to open a luxury mall in JB, aiming to be the first five or six-star mall in the city, similar to Ion Orchard in Singapore or Pavilion in Kuala Lumpur. The mall will be located at One Bukit, near Astaka, and will include a five-star hotel.
Location Analysis and Accessibility
Astaka: A Luxurious Condo
Astaka is a high-end condominium known for its tall towers and large unit sizes. Completed around 2017, it features only four units per floor, with three-bedroom units starting at 2,200 sq ft and four-bedroom units at 2,600 sq ft. Prices are roughly between RM1,000 to RM1,200 per square foot. It attracts buyers who seek luxury living at a more affordable price compared to Singapore.
RTS (Rapid Transit System) Link and Walkability
While the Capital Land mall is about 900 meters from the RTS station, the lack of proper pedestrian walkways due to a highway makes it less accessible by foot. Properties closer to the RTS, like R&F Princess Cove, The Astaka, and Causeway Square are more desirable. Even with the RTS completion, traffic dispersion within JB remains a concern.
RTS Development and Future Transportation
RTS Progress
The pillars for the RTS are already complete. Current work focuses on the train system, including tracks and signaling. Testing is already underway.
ART (Autonomous Rail Transit) System
The government plans to introduce an ART network in JB, featuring three lines running north, east, and west. Unlike the RTS, the ART is envisioned as an elevated tram/bus system following lines on the road, potentially requiring dedicated tracks.
ART vs. LRT (Light Rail Transit)
While an LRT system would be ideal, the government deems it too expensive. The ART is a cheaper and faster alternative, although it has a lower capacity. The ART is not expected to be ready for at least four to five years.
Traffic Concerns Post-RTS
Upon the RTS completion, traffic congestion within JB is expected to worsen, particularly in the city center. This makes properties within walking distance of the RTS station even more valuable. Sunway is building a condo with a mall integrated with RTS station.
Property Tiers and Investment Opportunities
Defining Property Tiers
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S Tier (Super Tier): Properties within walking distance (under 1 kilometer) of a train station. These are considered the best investments due to their accessibility and reduced reliance on cars and buses. Examples include R&F Princess Cove, Astaka, and Causeway Square.
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A Tier: Properties that are a 10-15 minute drive from key locations but not easily walkable. This includes areas like KSL, Danga Bay, and Mid Valley.
S Tier Properties
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R&F Princess Cove: Phase one is sold out, phase two is nearly sold out, and phase three is now open for sale, offering around 4,000 units. Prices for phase three are around RM1,000 per square foot.
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Causeway Square: A new project by a KL developer, Xim, known for its tasteful design. Units are smaller, but prices are higher, around RM1,300 per square foot.
Considerations for Buyers
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Investment vs. Own Stay: Determine if you're buying to invest or to live in the property.
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Completed vs. Under Construction: Decide if you prefer a completed property or are willing to wait for a new development.
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Location Preferences: Consider your lifestyle and whether you prefer the busy city center or a more suburban area.
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Transportation Needs: Evaluate your reliance on public transport and whether you need a car.
Benefits of S Tier Properties
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Higher Appreciation Potential: Due to limited land and high demand, S Tier properties are more likely to appreciate in value.
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Rental Demand: Tenants prefer S Tier properties because of their convenience and accessibility to Singapore.
Danga Bay (A Tier) Considerations
Danga Bay properties are cheaper, especially Country Garden projects, offering sea views. However, they are less likely to appreciate in price and may be more susceptible to downturns. Maintenance is generally satisfactory.
KSL and "Space" Condo
"Space" Condo, located opposite KSL, is an A Tier property with a mass-market design. Its main advantage is its location, popular with tourists and those who frequent KSL. However, there are reported safety concerns in the area.
Second RTS Proposal
Potential Location
The Chief Minister of Johor proposed a second RTS connecting to Tuas in Singapore, where there is an existing MRT station. This is currently just an idea, with no formal agreement from either the Singapore or Malaysian federal governments.
Possible Beneficiaries
If a second RTS is built, it would primarily benefit the western part of Johor. The most logical location for the Malaysian terminus would be Forest City, directly across the water from Tuas.
Final Advice for Buyers
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Define Your Objective: Are you buying to stay or to invest?
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RTS Proximity: If the RTS is a key factor, prioritize properties near the station.
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Compare Prices to Singapore: When evaluating value, compare JB properties to similar properties in Woodlands, Singapore.
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Due Diligence: Always do thorough research and understand the local market dynamics before investing.
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Visit the Properties: Seeing the properties firsthand is crucial to assessing their suitability.