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The property market in Johor Bahru is experiencing positive growth, bolstered by recent governmental initiatives and new project announcements, according to Samuel Tan, CEO of Olive Tree Property Consultants (Johor) Sdn Bhd. These developments include the launch of the Johor-Singapore Special Economic Zone (JS-SEZ), proposals for enhanced public transportation, and the conversion of private lease scheme units to freehold status in Medini Iskandar Malaysia.
Johor-Singapore Special Economic Zone (JS-SEZ) Launched
In a significant bilateral move, Malaysia and Singapore have officially launched the JS-SEZ with the ambitious goal of attracting 100 projects over the next decade. The zone encompasses areas such as Iskandar Malaysia, Forest City, Pengerang Integrated Petroleum Complex, and Desaru. The initiative has expanded its focus to include priority sectors like aerospace, electrical and electronics, chemical, medical devices, and pharmaceuticals, alongside existing sectors such as business services, the digital economy, and tourism.
Tan highlighted that the JS-SEZ will operate on a project-by-project basis, constructing infrastructure as investments are secured, differing from traditional methods where infrastructure precedes investment. Special incentives are also in place, offering companies investing in qualifying manufacturing and services a preferential tax rate of 5% for up to 15 years. Eligible knowledge workers within the JS-SEZ are entitled to a special tax rate of 15% for 10 years.
Medini Iskandar Malaysia Offers Freehold Conversion
Iskandar Investment Bhd has announced plans to allow the conversion of properties under the private lease scheme to freehold status in Medini Iskandar Malaysia. This option is available to developers purchasing vacant land and individual buyers of completed projects. The conversion is expected to enhance property resale values, with nominal premiums set at RM5,000 for serviced apartments under 1,000 sq ft and RM8,000 for larger units.
Proposed Public Transportation Enhancements
To address anticipated traffic congestion following the completion of the Johor Bahru-Singapore Rapid Transit System (RTS) Link, the federal government has proposed the construction of a light rail transit (LRT) line or an autonomous rapid transit (ART) tram-bus network in Johor Bahru and its surrounding areas. These projects are estimated to cost RM20 billion and RM7 billion, respectively. Tan emphasized the importance of efficient public transport in alleviating congestion and supporting the city's economic development.
Property Prices and Market Activity
The residential property sector in Johor Bahru has seen price increases ranging from 3% to 11% in the last quarter of 2024. Double-storey semi-detached homes in areas like Taman Bukit Indah and Austin Heights have recorded significant price hikes. Serviced apartments have also experienced price increases between 3% to 6%, with units in developments such as Sky Executive and R&F Princess Cove Phase 1 showing notable appreciation.
Recent Property Launches
The fourth quarter of 2024 witnessed several property launches, including:
- Iconia Garden Residence in Taman Impian Emas, featuring 111 double-storey terraced houses, fully sold.
- Pine 3 at Setia Eco Gardens in Pulai, offering 131 double-storey terraced homes with approximately 80% uptake.
- The Asteriaz in Kebun Teh, comprising 848 serviced apartment units, fully sold.
These developments reflect a robust demand in Johor Bahru's property market, driven by strategic initiatives and infrastructural advancements.
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