The Johor Bahru-Singapore Rapid Transit System (RTS Link), which is expected to be completed by the end of 2026, has become a major draw for Singaporeans looking to invest in the Johor property market.
The RTS Link will connect Bukit Chagar in Johor Bahru to Woodlands in Singapore, servicing roughly 10,000 passengers per hour in each direction to reduce traffic congestion on the Causeway.
When the 4km RTS Link shuttle service starts operating, passengers will be able to travel from the Bukit Chagar station in Johor Bahru to the Woodlands North station, or in the reverse direction, in roughly five minutes.
Kashif Ansari, co-founder and group chief executive officer of Juwai IQI, said the new RTS provides purchasers hope that if they buy now, their home would be worth considerably more in a few years.
He expects a huge surge in demand and cross-border property transactions when the new transit link opens in 2026.
According to him, the most significant impediment to cross-border property acquisitions has been the busy border, which 350,000 people cross daily.
While the travel should just take 20 minutes, it can take anywhere from 90 minutes to three hours to get across during rush hour and on weekends.
Peak-hour traffic volumes at the Woodlands and Tuas crossings have returned to pre-Covid-19 levels.
The Land Transport Authority of Singapore described the RTS Link as a "game changer that will significantly improve connectivity between Singapore and Johor Bahru, and ease congestion along the Causeway".
Kashif said that the new RTS Link is motivating property purchasers.
He said that a new project named The Quayside in Johor Bahru's city centre offers unsurpassed luxury living, but buyers are mainly intrigued by its location, which is just 100 metres from the upcoming RTS Link's Bukit Chagar Station.
That puts the project just five minutes from Woodlands North Station in Singapore, he said.
"We believe the number of people residing in Johor and travelling to Singapore for work every day could increase by one-third to one-half," he said.
According to Kashif, real estate agents and developers in Johor Bahru are starting to get a rush of fresh queries from Singapore purchasers compared to the fourth quarter of 2022.
He said that Singapore buyer queries in Johor Bahru increased by 20 per cent in March compared to the December quarter of 2022.
According to him, this demand will continue to strengthen through 2023.
Kashif said there are other driving factors behind the increase in Singapore buyers in the current quarter.
He said that Singaporean buyers are drawn to Johor because of the strong Singapore dollar, relatively affordable real estate, and lower cost of living.
When compared to the Malaysian ringgit, the Singapore dollar currently has five per cent more purchasing power than early last month and 40 per cent more than its 10-year low.
Kashif said basically, houses in Malaysia have become substantially more affordable for anyone with Singaporean dollars.
He quoted an RM2 million bungalow in Johor that costs roughly S$588,000 now.
Based on current currency rates, that same property would have cost roughly S$625,000 earlier this month. He said 10 years ago, the price would have been S$833,000.
"One of our clients is an excellent example of the growing demand from Singapore. These Singaporean buyers are a family with two children looking for a second home in the Horizon Hills section of Johor. They can buy a luxurious bungalow for RM2 to RM3 million. That's equivalent to less than S$900,000 at the most recent exchange rates.
"You can get a studio or one-bedroom condo in Singapore for that price. While the husband will continue working in Singapore, the wife will live in Johor, where the children will attend an international school. Daily life in Singapore is about four times more expensive than in Johor. International primary schools cost 80 per cent less, utilities are 72 per cent more affordable, and transportation and shopping are as much as 75 per cent lower, according to statistics from Numbeo," he said.
With a typical house price of RM320,000, Johor is Malaysia's third most expensive housing market.
Kashif said that while this is much higher than the national median property price of RM320,000, it is significantly less expensive than the average home price in Singapore.
"The average home price in Singapore is S$2 million, or about RM6.7 million, which is six times more than the median house price in Johor. To buyers from Singapore, purchasing in Johor allows them to buy more space, better views, and the land they couldn't afford at home, "Kashif said.
© New Straits Times Press (M) Bhd
from New Straits Times https://ift.tt/kL8ZyET
0 Comments