There are various news releases for Singapore (SG) - Johor (JB) RTS to date, the JB RTS station is indicated to be at the former site of the Tanjung Puteri Lorry Custom Complex just South-East of current Johor Bahru (JB) Custom & Immigration Quarantine (CIQ) Complex (News link).
Singapore has already released the location of the cross border rail station in Woodlands. To be completed and operational in 2018, the Woodlands North MRT station will be located close to the current Republic Polytechnic.
Source: URA
SG-JB RTS is a link between two countries and it will serve as a major gateway of 2 countries, In 2009 an estimated of 80,000 to 100,000 vehicles cross the causeway daily (The Causeway), the increase in population and car ownership since then suggests further increase in causeway utilization. SG-JB RTS had definitely attracted more Singaporeans to Iskandar especially in the JB CBD region. It is unsure whether SG-JB RTS will relieve causeway of traffic congestions as Singapore has ever increasing involvement in Iskandar. Especially on weekends and eve of holiday periods!
Extensive studies in the past has produced some interesting results on the effect of rail transit on property values (Download paper here). Historical data shows, residential property increases in value as it gets closer to RTS. If the property is within walking distance to a RTS it can command a premium.
However, in some studies residential property that is right next to a RTS actually can decrease in value. Historic data of US property market showed that residential property within 300m of RTS can have a negative effect on property value, and properties located between 300m to 900m from RTS generally experience positive impact on property value (Christopher, The Effect on Property Values of Rail and Bus Rapid Transit Lines). For residential properties within 300m of RTS, factors that can contribute to decrease in property value is the nuisance effect such as noise or visual pollution, crowds, traffic congestion at the station with taxi queue and buses.
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| Map of All luxury service apartments within the vicinity of Johor CBD (Please click to see enlarged picture): The above shows that Sky Suites and V @ Summerplace are both within 300m range of the Singapore-Johor RTS, this range of proximity can affect the property value both ways. Tri-Towers and Matex Residences lies within 300m~900m range of the RTS and residential property value within this range have been observed to benefit the most from proximity to RTS. However we also need to take into consideration the amenities surrounding specific projects and assess the overall attractiveness of the immediate areas. Note "TOD" is labelled far North of the snapshot. TOD (Transit Orientated Development) are special point of interest planned out under Iskandar Masterplan to provide a public transit point. It can be Johor's very own LRT or other forms of mass transit. Applying the same principle of between 300m ~ 900m, The Astaka, Pinnacle, Twin Galaxy Residences, Sky88 and WF Towers may benefit positively in terms of property value. |
The above only takes in account of property value versus proximity to RTS or TOD. The relative attractiveness of the area around RTS also needs to be taken into consideration. However property prices are affected more by the overall real estate market performance in the region.Then we have to move on to study the accomplishments and short-falls of the Iskandar Project since it's beginning in 2006. Is the project on track? Under-performing? Or ahead of expectation? What is the investment to date? Proposed item/project completed or in progress as according to masterplan? We also need to look at the political climate such as 2013 general election.
Overall, the presence of RTS would have a significant but slight beneficial effect on residential property values. Given that the SG-JB RTS is not an ordinary MRT station in our neighbourhood but an alternative gateway of an already congestion and heavily utilized Woodland Causeway, the RTS may be one of the catalyst to property price appreciation upon it's completion in 2018. If the overall Iskandar Property market continues it's current performance, the JB CBD property market will blossom with or without the RTS.
Chieng E Way
REA Pte Ltd
