The RTS Link will have a positive impact across the different property types—residential, commercial, though the benefits may vary in scale.
The Johor Bahru–Singapore Rapid Transit System (RTS) Link, a highly anticipated infrastructure project, is set to transform cross-border connectivity between Malaysia and Singapore. More than just a solution to daily commuting woes, the RTS Link is poised to reshape Johor Bahru’s property market, driving demand, boosting property values, and spurring broader economic growth.
Spanning 4 kilometres, the RTS Link connects Bukit Chagar in Johor Bahru to Woodlands North in Singapore. Once operational, the system will reduce travel time between the two regions to just 5 minutes. This unparalleled convenience is expected to attract a wave of interest in Johor Bahru’s residential properties, especially from Malaysians working in Singapore and Singaporeans exploring more affordable housing options.
As of April 2023, the project was 50% complete, with full operations slated to begin by the end of 2026. The RTS Link will have the capacity to transport up to 10,000 passengers per hour in each direction, significantly alleviating the chronic traffic congestion on the Johor-Singapore Causeway.
Boost in Property Investment Activity
The RTS Link represents a significant commitment to enhancing infrastructure and fostering economic integration, which is expected to bolster confidence among investors in Johor’s real estate market. This optimism will likely attract local and international investors, who see strong potential for long-term capital appreciation across residential, commercial, and industrial properties. As a result, the market is poised for a surge in property transactions in most sectors.
Maggie Ng, Chief Executive Officer of Berinda Group cautions that the anticipation of future economic growth and better connectivity might also lead to increased speculative buying, especially in areas near the RTS stations. This could result in property price spikes in the short term, although the sustainability of such prices will depend on the broader economic outlook.
“The RTS Link is expected to significantly boost cross-border economic activities, driving demand for both residential and commercial properties in Johor. The surge of demand for housing and commercial spaces could lead to a property boom in Johor Bahru. It will make Johor more attractive to businesses, investors, and commuters from Singapore, resulting in increased property values and development opportunities.
“In the long term, Johor’s real estate market could see sustained growth, driven by improved infrastructure, enhanced labour mobility, and closer economic ties with Singapore. However, developers and investors will need to monitor the balance between supply and demand to ensure sustainable growth,” shares Ng.
“In the long term, Johor’s real estate market could see sustained growth, driven by improved infrastructure, enhanced labour mobility, and closer economic ties with Singapore. However, developers and investors will need to monitor the balance between supply and demand to ensure sustainable growth,” shares Ng.
Residential Properties: The Primary Beneficiary
The residential sector is poised to be the primary beneficiary of the RTS Link. Condominiums and serviced apartments near the RTS stations are expected to attract commuters and expatriates, driving up property prices and rental yields.
“With easier access to Singapore, there will likely be an increase in demand for residential properties in JB, especially from Singaporeans and expatriates looking for housing options in Malaysia. This demand could push up prices and increase rental yields in areas near RTS stations,” says Ng.
Targeted segments include middle-to high-income investors and professionals who value convenience and proximity to the RTS Link. As such, the development presents an excellent opportunity for developers focusing on high-rise, mixed-use projects that cater to this demographic.
The RTS Link is expected to act as a catalyst for broader urban development in Johor Bahru. Government and private sector investments in surrounding infrastructure will likely include new townships, improved road networks, and enhanced public facilities. This growth will benefit both residential and commercial properties, contributing to the city’s modernization and leading to price appreciation in currently underdeveloped areas, creating new growth corridors for Johor’s real estate market.
Some examples of rapidly developing areas are Taman Ponderosa and Taman Molek, located merely 15 minutes from CIQ Complex and city centre; and highly accessible via Eastern Dispersal Link, Tebrau Highway, Pasir Gudang Highway and North-South Highway.
These freehold townships consisted of semi-detached, terrace, apartment and condominiums such as Ponderosa Vista, Ponderosa Lakeside, Ponderosa Green and Ponderosa Villa, Molek Pine Luxury apartment and Molek Hub Shop Office.
Commercial Properties: New Opportunities
The RTS Link is also expected to have a profound impact on Johor Bahru’s commercial real estate sector. Increased foot traffic and tourism from Singapore are likely to boost demand for retail and office spaces, particularly in Johor Bahru’s Central Business District (CBD). Retail centres and office buildings near the RTS station will benefit from increased consumer traffic and business activity.
According to Ng, "The increased foot traffic generated by commuters and cross-border travellers will boost demand for retail and office spaces near the RTS stations, especially in Johor Bahru’s CBD. This can lead to higher rental rates and occupancy for shopping centres, office buildings, and co-working spaces."
Mixed-use developments combining residential, retail, and office spaces are expected to flourish, creating vibrant urban hubs around the RTS Link. Additionally, the tourism and hospitality sectors are poised for growth, with more visitors fueling demand for hotels, restaurants, and entertainment facilities.
“The RTS Link is expected to boost the flow of Singaporean tourists and shoppers into Johor, already a hotspot for affordable shopping, dining, and entertainment. Retail properties near the RTS, such as Johor Bahru City Square Mall and Mid Valley Southkey, will see higher demand and occupancy rates, revitalizing the retail sector and attracting international brands and F&B outlets,” adds Ng.
“This surge will benefit the retail, tourism, and hospitality sectors, driving demand for commercial real estate like retail spaces, hotels, and entertainment venues. Developers will also seize the opportunity to expand Johor’s retail and entertainment offerings to cater to this growing market.”
Industrial Sector: Moderate Impact
While primarily a passenger transit system, the RTS Link indirectly benefits the industrial sector by enhancing cross-border trade and logistics. Industrial properties focused on warehousing, logistics, and distribution may experience value appreciation due to improved transportation efficiency.
As stated, “The RTS will enhance transportation efficiency, benefiting industrial properties focused on logistics, distribution, and warehousing. This can make areas in Johor Bahru more attractive to companies dealing with cross-border trade, e-commerce, and manufacturing.”
“The RTS Link will boost cross-border operations, making it easier for professionals, investors, and goods to move between Johor and Singapore. Johor’s role as a strategic business hub will strengthen, especially with the JS-SEZ (Johor-Singapore Special Economic Zone) facilitating growth in key sectors like technology, logistics, and manufacturing. This will attract multinational corporations, driving demand for commercial and industrial properties, including offices, industrial zones, and logistics hubs.
Additionally, the RTS link will act as a catalyst for the expansion of development zones beyond Johor Bahru’s city centre, including areas like Iskandar Malaysia, which will create new growth corridors. These areas are expected to attract both local and foreign investors, driving long-term property value appreciation.
The RTS Link serves as a clear demonstration of long-term infrastructure development and economic collaboration, instilling greater confidence among investors in Johor’s real estate market. Both domestic and international investors are likely to recognize the strong potential for sustained capital growth in residential, commercial, and industrial properties. This renewed confidence is expected to drive a significant uptick in property transactions
A Promising Future for Johor Bahru
The Johor Bahru–Singapore RTS Link represents a landmark project with the potential to transform Johor Bahru’s real estate market. Its influence on residential and commercial properties, coupled with enhanced economic integration with Singapore, positions Johor Bahru as a vibrant urban hub.
Developers, investors, and policymakers must work collaboratively to maximize the RTS Link’s benefits while addressing challenges such as oversupply and affordability. With strategic planning and sustainable development practices, the project is set to drive long-term growth, making Johor Bahru an increasingly attractive destination for residents, businesses, and investors alike.
“While Johor Bahru and surrounding areas will see increased interest in mid- to high-end properties, there will still be strong demand for affordable housing, driven by local population growth and urbanization. The government will likely continue to promote affordable housing initiatives to ensure that local buyers are not priced out of the market,” she predicted.
“While Johor Bahru and surrounding areas will see increased interest in mid- to high-end properties, there will still be strong demand for affordable housing, driven by local population growth and urbanization. The government will likely continue to promote affordable housing initiatives to ensure that local buyers are not priced out of the market,” she predicted.
“Government policies supporting property developers, such as financial incentives, regulatory easing, and infrastructure investments, will help sustain growth. If these policies are well-coordinated, they could encourage the development of balanced, sustainable housing and commercial projects across Johor.”
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