Danga Bay, Tropez set to benefit from JB-Singapore RTS rail link

Danga Bay, a prime sea-frontal area in Johor Baru (JB) where China Country Garden made its debut several years ago is set to benefit from the JB-Singapore rapid transit system (RTS), says Datamine Malaysia head of research, Jerren Lai.

Lai said property prices at the Danga Bay area, including the upscale sea-fronting Tropez serviced apartments will likely hit RM1,200 per square ft (psf) or half of Woodlands’ median price.

Tropez, the first modern serviced apartments in JB is part of the larger Tropicana Danga Bay project, a joint venture between Tropicana Corp Bhd and Iskandar Waterfront Holdings (IWH) Sdn Bhd.

Strategically located on 14.8 hectares of prime freehold waterfront land in Zone A of Iskandar Malaysia, Tropicana Danga Bay has a gross development value of more than RM4 billion.

It comprises residences, offices, commercial towers, a luxurious hotel and retail and is a short drive to the Johor-Singapore causeway.

Phase 1 of the project is Tropez serviced apartments featuring three sea-facing blocks, completed at the end of 2014.

Tropicana, known for its flagship Tropicana Golf and Country Resort development in Petaling Jaya, and IWH may plan new launches at Tropicana Danga Bay following the RTS development.

“Not many know this but Tropez triggered the condo boom in the Iskandar Malaysia region and led to the ‘birth’ of Datamine. Prior to Tropez, there were very few condos in JB back in 2010.

“Developers opined that landed property was the way to go, partly influenced by Singapore demand, where landed commands a super-premium and the ultimate social status for Singaporeans.

“When Tropez launched at more than RM420 psf, it was considered high as one could get a landed property for that price. But Tropez sold like hot cakes. There was a big unmet market for modern condos where a swimming pool is a rare sight,” Lai told NST Property.

Lai said Tropez influenced MB Group or Mahabuilder, one of the largest developers in JB back then to launch Skysuites, the firt condo nearby the JB Customs, Immigration, and Quarantine Complex (JB CIQ).

According to him, Skysuites sold 1/3 of the building just by word-of-mouth within one week and the developer abandoned plans to build a showroom.

The success of Tropez and Skysuites drove Paragon Residences, V Summerplace, and Country Garden into the market.

Lai said what is interesting about the JB property market is that there are many first when its comes to real estate development starting with Tropez.

Tropez is the first modern condo with the first-of-its-kind infinity pool, while Skysuites is the first condo in the city centre that is within walking distance to the CIQ.

Paragon Residences is the first condo to start selling from RM1 million a unit, SetiaSky88 the first tallest twin towers, RF Princess Cove the first integrated development with HOPSCA concept (hotel, office, park, shopping mall, club, apartment), Country Garden the first largest single development with 9,500 units at one go, and Affinity, the first condo in Medini where foreigners can buy with no restriction on minimum price.

“With RTS in the pipeline, many people earning the Singapore dollar will take up condos in JB city area as its considered cheap by Singapore standard,” Lai said.

Lai said comparing Singapore Woodlands versus JB CIQ property price, the Urban Redevelopment Authority of Singapore (URA) records Woodland’s median price at SGD799 psf (RM2,397 psf) while Iskandar Property Census 2020 Q3 reported JB CIQ prices at RM921 psf.

“Private property priced between the two nodes exceeds 320 per cent in differential value but will likely narrow to around 30 percent upon the completion of the RTS. JB CIQ prices will gradually appreciate in tandem with the RTS progress from RM921 psf now to around RM1,700 psf,” Lai said.

Malaysia has began construction for the RTS link with a groundbreaking ceremony at the site for the Bukit Chagar station on November 22.

The event was officiated virtually by the Sultan of Johor, Sultan Ibrahim Sultan Iskandar from Istana Bukit Serene.

Also present were Tunku Mahkota Johor Tunku Ismail Sultan Ibrahim, Transport Minister Datuk Seri Dr Wee Ka Siong and Menteri Besar Datuk Hasni Mohammad.

The RTS Link aims to connect Bukit Chagar in Johor Bahru to Woodlands in Singapore, serving about 10,000 passengers per hour each way to help ease traffic congestion on the Causeway.

The total cost of the RTS project is estimated at RM10 billion (SGD3.24 billion).

Passenger services are targeted to start about six years from now.

The Bukit Chagar station will feature a four-storey block, encompassing the train platform and CIQ. It will be part of a transit-oriented development with the adjoining JB Sentral station and a mixed property project.

The RTS journey is projected to take less than 10 minutes to connect the two regions and the state-of-art immigration clearance system is expected to mirror the Shenzhen-Hong Kong border crossing.

“Malaysian real estate valuers will need a paradigm shift in the way they value Iskandar properties from now on as the Singapore factor will drive prices benchmarked against Woodlands rather than historical local transaction prices,” he said.

A ‘boom’ for JB property market

There are eight freehold properties in JB, including Tri Tower, Suasana, R&F Princess Cove, Sky Habitat, Skysuites, V Summerplace, and Paragon Suites within 15-minutes walking distance to the RTS hub that will be in high demand.

Lai said the Iskandar Property Census 2020 Q3 Report singles out the eight properties that will have an added premium as Woodlands is earmarked as the third Regional Centre and largest Northern economic hub of Singapore.

Singapore Woodlands is a thriving commercial and industrial node where its small and medium enterprises currently employ a large pool of Malaysians whose expected salary is lower as they live across the Causeway.

Lai predicts the pool will get bigger once the RTS is completed.

“Strong demand will also come from the Singapore HDB leasehold dwellers who are experiencing the lease-decay problem. About 80 percent of Singaporeans live in HDB flats and 100,000 of these units are nearing 60 years where banks are reluctant to offer loans to new purchasers. Iskandar freehold properties will be an affordable escape route for them,” he said.

Tri Tower and Suasana are priced around RM1,300 psf. R&F Princess Cove is priced at RM910 psf, Sky Habitat at RM800 psf, Skysuites at RM635 psf, V Summerplace at RM748psf, Paragon Suites at RM880 psf and the upcoming Twin Tower at RM791 psf.

Source: NST