KUALA LUMPUR: RHB Research said the Rapid Transit System (RTS) link being developed in Johor Bahru has spurred rental and property prices in the surrounding area, with Knight Frank Malaysia stating that a few high-rise project transactions have reached RM900-RM1,100 per square feet.

The price per square feet is almost on par with property prices in the Klang Valley.

The RTS will connect Bukit Chagar in JB to Woodlands in Singapore and is due for completion by end of 2026.

The research unit recently invited Knight Frank Malaysia's executive director of research and consultancy Amy Wong, to share the company's outlook and insights on the Iskandar Malaysia property market.

The research report said demand for high-rise units in the Johor Bahru (JB) city centre is very much Singapore dollar-driven, with expensive rental rates in Singapore driving rental demand in the JB city centre.

Given the scarcity of available land for development surrounding the RTS station, some parties have also offered to acquire certain old neighbourhoods for redevelopment.

For the residential segment, Wong said that planned and incoming supply of serviced apartments amounted to 71,000 units, which is about 57 per cent of the current stock.

Although the numbers appear somewhat worrying, the supply entering the market should be spread over 3-5 years. "In our opinion, today's demand is also backed by infrastructure development - the RTS - that is ongoing, providing visibility for future cross-border connectivity,' RHB Research said.

On the retail segment, Wong shared that the rental rates at certain major shopping malls are now on par with the rates of some shopping malls in the Klang Valley.

Some strategically located malls in the JB city centre such as Komtar JBCC and R&F Mall should see a better performance, as greater connectivity and the encouraging prospect of higher shopper traffic should boost their occupancy rates.

https://www.nst.com.my/business/2023/08/945844/rental-and-property-prices-around-jbs-rts-link-near-klang-valley-prices