KUALA LUMPUR: Johor Baru's (JB) hotels, retail and food and beverage (F&B) sectors saw spillover effects from Taylor Swift's concert, a phenomenon generally referred to as "Swiftonomics",  in Singapore last month.

RHB research in its report today said  hotel occupancies were full, F&B outlets enjoyed good business, while transporters were busy fetching concert goers across the causeway during that week.  "The effect strongly shows the increasing significance of Johor given its proximity to Singapore.

It said hotels in JB are already enjoying high occupancy rates of 80-90 per cent during normal weekends.

Retailers in F&B and golfing services are putting up new stores or expanding their services, while occupancy of certain shopping malls in JB is almost full.

"We believe many retail brands will now consider JB as an important market for their store expansion in the near term. All these wealth effects are expected to translate to stronger demand for property in Iskandar Malaysia," the report said.

RHB research expects the property sector to continue to be driven by positive news flow on potential infrastructure projects; active land transactions, and influx of investments, especially in the data centre, green energy and manufacturing sectors.

Developers with sizeable landbank and industrial segment exposure should see greater benefit from infrastructure developments and rising investment flows. Pump priming across the Klang Valley, Iskandar Malaysia and Penang region is also expected to lift the sector's overall valuation.

The property sector has appreciated about 18 per cent year-to-date, measured by the KL Property Index.

"While it is no longer as cheap as before, we think positive news flow ahead should continue to support valuation. Investors should also focus on laggard plays that have the right market exposure," RHB research said.

Its top picks include UEM Sunrise Bhd, IOI Properties Group Bhd, and Eastern & Oriental Bhd.

It has an overweight call on the real estate sector.

https://www.nst.com.my/business/economy/2024/04/1037941/johor-barus-hotels-retail-and-fb-benefitted-swiftonomics-last-month