A landmark US$582 million mixed-use development is set to rise next to the RTS Link's Bukit Chagar station in Johor Bahru. Over an eight-year period, this ambitious project will integrate with the city's immigration complex, bringing a blend of residential, commercial, and leisure spaces to a 1.71-hectare site. The development aims to redefine Johor Bahru's retail property scene by offering apartments, a shopping mall, and a parking facility.
The RTS Link, expected to commence operations by the end of 2026, promises to be a game-changer for Johor Bahru's economic landscape. With its strategic positioning, the mixed-use development at Bukit Chagar could double average rentals at nearby Komtar JBCC, indicating a significant uplift in the retail property market. The project is poised to open doors to diverse opportunities across retail, food and beverage, and services sectors.
The Bukit Chagar initiative could potentially inspire similar transport-linked developments throughout Johor Bahru. Such integrated projects are designed to create more economic opportunities and transform urban living by combining residential, commercial, and recreational elements. The development’s prime location with excellent connectivity makes it an attractive proposition for investors and businesses alike.
“Transit-oriented development is undoubtedly beneficial for Johor Bahru’s long-term growth, as it promotes economic clustering, reduces congestion and enhances liveability,” said Lee Kun Thye.
Industry experts anticipate that the RTS Link and the ART (autonomous rail rapid transit) network will play pivotal roles in creating economic opportunities in Johor Bahru. However, small businesses express concern over the expected increase in retail rentals due to enhanced footfall from new infrastructure.
“Our cost of business will go up. We hope that the federal government can give grants or soft loans for SMEs to play a part (in Johor’s retail growth) and not just reserve slots for big companies,” said Teh.
The development at Bukit Chagar stands out as an attractive option for Singaporean travelers seeking accommodation without property acquisition, contingent on the seamless operation of the RTS Link. Johor Bahru's proximity to Singapore and the advantageous exchange rate add to its allure.
“The cost of living in Singapore is high, so given a choice, those having to work in Johor in the future will definitely look at this type of housing as an alternative for additional cost savings,” stated Imran.
“The attractive exchange rate coupled with no additional buyer’s stamp duty (for) a second property in Johor will make it a very appealing proposition,” Imran added.
The potential transformation of Johor's retail landscape has drawn attention from developers and investors alike. Industry analysts predict that the commencement of the RTS Link might propel some property prices in Johor’s central business district higher than those in Kuala Lumpur’s CBD.
“When the RTS Link starts running, some prices in Johor’s central business district (CBD) can be higher than Kuala Lumpur’s CBD,” noted Ishmael Ho.
While private companies are considered adept at minimizing risks associated with integrated developments, some experts caution about their profit-driven motives.
“While a private company is better placed to minimise the risk of an integrated development becoming a “white elephant”, its core objectives are profits and viability,” explained Ho.
Collaboration between public authorities and private entities could mitigate financial risks and attract innovative approaches. Such partnerships are seen as essential for bringing new ideas and investments into Johor Bahru's evolving landscape.
“It mitigates the risk, (allows Sunway to) shoulder a bit of the burden. You also bring in new money, new ideas, new systems, new methods – very good economic sense to try to partner up,” commented Siva.
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