JB CIQ FORECAST
The critical factors that will have the most influence on the future price and demand of JB CIQ area are:
- The Rail Transit System (RTS) outcome that links Singapore Woodlands to JB CIQ Bukit Chagar.
- The R&F use of their remaining landbank and how much supply will be added to the pipeline.
- Woodlands rental and private property prices upon confirmation of the RTS.
JB CIQ Forecast
- The RTS has been delayed 6 times. The original timeline for its completion was 2018 and will likely be pushed to 2025. The agreement between the two countries is expected to be sealed by August 2020.
- It is highly probable that it will move ahead according to the new timeline as all components appear aligned. This decision is primarily political and the historical challenges that led to a series of delays will not be covered here.
- 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 mutual benefits this project has on both countries are summarised on this site.
- The Malaysian side is now aligned. The sitting Prime Minister Muhyiddin is a Johorean and in harmony with the Johor Royalty who has 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 “Central CBD” in other nations.
- It promises HOPSCA, a mixed development that offers Hotel, Office, Park, Shopping Mall, Club House and Apartment. The concept suggests that a sizable proportion of its remaining land bank will be used for its upcoming office tower, Grand Hyatt Hotel and Park thus moderating supply on residential units.
- It is highly probable that upon completion of the RTS that JB CIQ property price differential will benchmark Singapore Woodlands by around 30 percent gap.
- 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 which are closest to the RTS hub has the potential to reach RM1700psf (30% lower than Woodlands) while 2nd tier properties such as Skysuites, Sky Habitat and V Summerplace will likely hover around RM1500psf.
- The latest Iskandar Property Report 2020Q1 recorded a median price of RM873psf.