RTS Link: Short-term stays will expand

KGV International’s Samuel Tan believes that one of the anticipated beneficiaries from the RTS Link would be the high-rise serviced apartments which are sprouting all over Johor Bahru.

“We believe there will be increased demand from investors buying for rental or their own use. However, this does not work in silo. A friendlier foreign house ownership policy is also critical to ensure a buy-in from Singaporeans. For that to happen, it may be necessary to relook into policies such as the price threshold and RPGT (Real Property Gains Tax) for foreign buyers,” he explains.

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Samuel also anticipates that short-term residences like Airbnb will benefit from the RTS Link.

“The conveniences offered by the RTS Link will attract people from Singapore and other parts of Malaysia to stay overnight for shopping, recreation and food,” he reasons.

Nonetheless, he highlights that how the property market will benefit from the RTS Link would depend on the availability and efficacy of vaccines to counteract the Covid-19 pandemic and the border-opening management by the two countries.

“With improved last mile connectivity, the spillover effect will be felt in the other satellite and suburban areas in Iskandar Putri, Tampoi, Skudai, Tebrau and Ulu Tiram as well as Pasir Gudang.

“So, it is important to have taxis, stage and shuttle buses and e-hailing vehicles to these destinations within reasonable times and costs. In preparation for all these demands, the BRT will be rolled out by IRDA (Iskandar Regional Development Authority) connecting this major transportation hub to all the outlier areas.

“To cater to those using the LRT, ample parking spaces with reasonable rates must be made available to users who will drive from various places of JB to the station,” he adds.

This story first appeared in the EdgeProp.my e-Pub on Dec 4, 2020. You can access back issues here.

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