[ How the RTS Link Will Impact Johor Bahru's Property Market ]



The upcoming Rapid Transit System (RTS) Link is poised to be a major catalyst for Johor Bahru's property market. It's more than just a transportation project; it's a strategic move to boost economic integration between Johor and Singapore, which is expected to have a profound impact on real estate.

Property Prices: Bull or Bear Market?

The general consensus among industry experts is that the RTS Link will push property prices into a bull market, especially for properties near the station and along the RTS corridor. This isn't a speculative bubble; it's driven by fundamental factors:

Increased Demand:
The RTS will make commuting between Johor Bahru and Singapore seamless, attracting a surge of buyers and tenants. This includes Malaysians working in Singapore, Singaporeans seeking more affordable housing, and expatriates.

Higher Property Values:
Enhanced connectivity and accessibility are a major draw. Properties within a 5-kilometer radius of the RTS stations have already seen price appreciation. This trend is expected to continue as the project nears completion.

Rental Market Advantage
The property rental market in Johor Bahru is expected to see a significant advantage. The increased demand from cross-border commuters will drive up rental yields, making it an attractive proposition for investors. Some reports indicate that rental prices for apartments near the border have already nearly doubled compared to the pandemic period. This makes Johor Bahru's rental market very competitive when compared to Singapore.

Supply and Demand Imbalance?
While there is a risk of a short-term imbalance, especially with an increase in demand, the market is adjusting. The long-standing issue of an oversupply (or "overhang") of residential units, particularly high-rise apartments, has been steadily declining. Developers are confident, and there's a healthy pipeline of new projects, which should help to meet the rising demand.
Conclusion, Look Beyond the "Egg Yolk": While properties right next to the RTS station (the "egg yolk") are prime, they also come with a high price tag. Consider properties in the second circle—areas that are still well-connected to the RTS via other public transport links or a short drive. These properties may offer a better value proposition and potential for future appreciation.

Howard Lee Property Agent & advisor