JOHOR BARU, March 26 — The Rapid Transit System (RTS) Link, slated for completion in 2026, is proving to be a catalyst for Johor’s economy by enhancing connectivity with Singapore and revitalising the local property market, especially in Johor Baru.
PropertyGuru Malaysia country manager Sheldon Fernandez said the southern state is witnessing a significant metamorphosis, shifting away from its status as the state with the highest property overhang to a much more advantageous position.
“This improvement is attributed to various initiatives undertaken by the state, including the development of the RTS Link, the designation of Forest City as a special financial zone (SFZ), the proposed Johor-Singapore Special Economic Zone (SEZ) and the potential revival of Kuala Lumpur-Singapore high-speed rail (HSR).
“These efforts have not only boosted property demand but also enhanced property values,” he said in a statement today.
According to property marketplace iProperty Malaysia, the demand for Johor Baru properties climbed by 17 per cent when the RTS Link reached 50 per cent completion in April 2023.
“The National Property Information Centre’s (Napic) Property Market Report 2023 also noted a 20 per cent decrease in Johor’s unsold property units, from 5,258 in 2022 to 4,228 units by 2023,” it said.
Meanwhile, Fernandez said Johor Baru is also seeing a significant year-on-year (y-o-y) median asking price growth of 20 per cent for service residences.
He said smaller units, in particular, recorded robust price growths with the 501-750 square feet (sq ft) category recording a 27 per cent growth in prices, while 751-1,000 sq ft units recorded an 18 per cent price growth and 1,001-1,250 sq ft recorded a 15 per cent price growth.
“This could indicate that the advantage of seamless connectivity outweighs the preference of larger living spaces due to lower entry cost and closeness to a main mode of transportation,” he said.
Citing the Global Property Guide, Fernandez said the average gross rental yield in Malaysia stood at 5.16 per cent as of the first quarter of 2024, with Johor surpassing the national average at 6.25 per cent.
“As we reflect on the past year, it is evident that Johor’s property landscape has undergone a period of growth, resulting in the surge in demand for properties in the state, especially in Johor Bahru,” he said.
Fernandez said investors and homebuyers seeking to capitalise on this momentum should carefully consider Johor Bahru and its surrounding suburbs.
“With the development of major projects, such as the RTS and other initiatives that position Johor as an emerging hub of economic activities, the outlook for the state appears promising,” he said.
He added that the ongoing developments and anticipated economic growth could lead to attractive investment prospects in the real estate sector. — Bernama
