How the Singapore-KL HSR could affect property prices

By Cecilia Chow / The Edge Property | July 29, 2016 10:00 AM MYT

Two years ago, Singaporean David Neubronner moved into his new home at Straits View Residences, a gated landed housing community located in the Permas Jaya housing estate of Johor Baru. He bought the four-bedroom, semi-detached house from Malaysian property group BRDB Developments when the project was launched in Singapore in 2010. The double-storey house has a built-up area of 3,000 sq ft and sits on a freehold land area of 6,000 sq ft.

Neubronner purchased the property six years ago with a view of retiring at 55. In 2014, when he received the keys to his new home, he also took up the position of director of business development at property agency SLP International. He continues to work in Singapore on weekdays while his son just started secondary school this year.

They look forward to Friday afternoons when he drives across the Causeway to their home. “Security in JB may still be an issue, but I like the privacy and open space,” says Neubronner. “Singapore is getting very expensive and congested. It’s just a matter of time before more Singaporeans will consider living in Iskandar Malaysia.”

That could happen within the next decade, with greater rail connectivity between the two countries. On July 19, a memorandum of understanding (MOU) was signed, which marks a significant step towards more detailed planning and the eventual construction of the 350km high-speed rail (HSR) link connecting Singapore and Kuala Lumpur. HSR is said to cut travelling time between the two cities to 90 minutes — as the trains will run at a top speed of more than 300kmh — and is targeted to be operational in 2026.

Between the two terminal stations at Bandar Malaysia in KL and Jurong East in Singapore, there are six intermediate stations in Malaysia that will be connected via a domestic service: in Putrajaya, Seremban, Ayer Keroh, Muar, Batu Pahat and Iskandar Puteri (formerly known as Nusajaya). Besides the non-stop HSR service between Singapore and KL, and the domestic service, there will be a shuttle service between Iskandar Puteri in Johor and Singapore.

Passengers will be able to clear customs, immigration and quarantine for both countries at their point of departure, with both governments co-locating these CIQ (customs, immigration and quarantine) facilities at three locations — Singapore, Iskandar Puteri and Kuala Lumpur. With HSR and the station at Iskandar Puteri offering a shuttle service to Singapore, will more Singaporeans be encouraged to revisit the Iskandar housing market?

Source: The Edge Property