JB CIQ FORECAST

Critical factors that will influence future price and demand in JB CIQ hotspot:

  • The Rail Transit System (RTS) linking Singapore Woodlands to JB CIQ Bukit Chagar.
  • The R&F use of its remaining landbank and how much supply will be added to the pipeline.
  • Woodlands rental and private property prices upon confirmation of the RTS link project

BREAKDOWN

The RTS

  • The RTS has been delayed six times. The original timeline for its completion was 2018 and will likely be pushed to 2025.
  • It was recently announced that the agreement between the two countries will be signed on July 30, 2020.
  • It is highly probable that it will move ahead on this new timeline as all components appear aligned.
  • The Singapore side wants it to happen. It links to the new Thompson MRT line and its terminal depot is earmarked to be at JB CIQ Bukit Chagar.
  • The Malaysian side is also now aligned. The sitting Prime Minister, Muhyiddin Yassin, is a Johorean and in harmony with the Johor royalty, which exercises strong influence over state matters.

The R&F Land Bank

  • The R&F has the most strategic land bank in this area. It started with residential and added an iconic Opera House that typically symbolises the focal point of any central district.
  • It promises HOPSCA (Hotel, Office, Park, Shopping Mall, Club House and Apartment) and the concept suggests that a sizable portion of its remaining land bank will be used for its upcoming office tower, Grand Hyatt Hotel and Park, thus moderating supply on residential units.

Price

  • It is highly probable that upon completion of the RTS that JB CIQ property prices will be 30 percent cheaper than Singapore Woodland.
  • Woodlands private property price is SGD850psf or RM2550psf (URA 2020 Q1) while the average JB CIQ price is RM825psf (Iskandar Property Census) representing a 70 percent differential.
  • Prime properties such as R&F Princess Cove, Tri Tower and Suasana, all closest to the RTS hub, have the potential to reach RM1700psf (30 percent lower than Woodlands) while second tier properties such as Skysuites, Sky Habitat and VSummerplace will likely hover around RM1500psf.
  • The latest Iskandar Property Report 2020Q1 recorded a median price of RM873psf.

We are constantly updating this area’s DEMAND and SUPPLY, location review in HOTSPOT and future PRICES in our FORECAST section.