Some Singaporeans are snapping up properties near the Rapid Transit System (RTS) Link in Johor Bahru in anticipation of easier access across the border once the project is completed.
Analysts said home prices have increased in recent years, with properties around the Bukit Chagar RTS station – the Malaysia terminus – seeing the highest demand.
“The RTS is a big draw factor,” said real estate agent Ryan Khoo, who deals with properties in Johor. “It will make the travel between Singapore and Johor Bahru a lot shorter.”
The service will ease the notorious bottlenecks along the Causeway – one of the world’s busiest border crossings – by transporting up to 10,000 passengers each way every hour.
“The RTS will be a game changer,” said Dr Timothy Wong, a senior lecturer at the National University Singapore’s (NUS) Department of Economics.
“It is part of the greater plan to integrate the economies of these two cities more closely. The RTS plays quite nicely into the Johor-Singapore special economic zone (SEZ) because it eases the movement of people across the border.”
RTS ATTRACTS HOME BUYERS
The light rail transport is one of the main draws that persuaded one such Singaporean to buy properties across the Causeway.
Industry players said increased demand has pushed prices of properties within walking distance of the terminus up by about 18 per cent in the last two years. A two-bedroom condominium now costs about S$240,000 (US$180,000).
“This increase is expected to continue as the RTS progressively gets completed,” said Dr Lee Nai Jia, head of real estate intelligence and digital and software solutions at the PropertyGuru Group.
“When it’s fully operational, I think we will see another increase of maybe about 5 to 6 per cent. Prices are then likely to stabilise from there.”
Integrated developments with offices and retail spaces are also expected to be built in the area in the future.
CNA
