THE SRAITS TIMES. 27TH MARCH: Rent levels for Johor properties are expected to rebound to pre-pandemic levels when land borders between Malaysia and Singapore reopen, say property developers in the southern Malaysian state.
Malaysia and Singapore will be reopening their borders to fully vaccinated travellers from April 1, without requiring them to quarantine on arrival.
Land crossings between Johor and the island state, which had been shut due to the Covid-19 pandemic, will reopen, allowing Malaysian workers to resume their previous practice of living in Johor and commuting daily to Singapore.
Rental fees are expected to recover to what they were before the pandemic hit the country, said Seri Alam Properties deputy general manager Law Teck Seng.
“For example, let’s say the rental price of a shoplot was around RM5,000 (S$1,600) per month before the pandemic. This went down to RM3,000 per month during the pandemic. Now, the rate will go back to its normal level,” he said.
He noted that the current room rates for single-storey houses in areas such as Taman Daya, Taman Maju Jaya and Taman Sri Tebrau, which are near the Causeway linking Johor and Singapore, are around RM850 a month.
“Those earning Singapore dollars … will not have trouble paying their rents as they are more affordable here than across the Causeway,” he added.
When the land crossings between Johor and Singapore were shut, many Malaysians working in Singapore resorted to finding temporary accommodation in the republic, especially in public housing or Housing Board flats.
Their return to Johor however is not expected to drive up rents excessively, said Seri Alam Properties executive director Freddie Lee.
Mr Law also said it would be unwise for landlords to increase their rental rates immediately as many people have yet to recover from the financial impact of the Covid-19 pandemic.
He also noted that there were many vacancies, especially in high-rise properties in Johor Baru that had not been rented out in the last two years.
“Some property developers have not launched any new properties during the pandemic. All they have been doing to survive is to sell their present properties,” he said.
The reopened borders are also expected to aid business recovery.
Mr Lee, who is the former Johor Real Estate and Housing Developers Association secretary, said the rental for shop lots would also return to normal.
“During the pandemic, shop lots at shopping malls or retail shops were suffering in terms of sustaining their business while trying to pay their rent.”
This, he said, was because about 70 per cent of the businesses in Johor depended highly on Singaporean visitors.
“So, with the good news of the border reopening, I believe that this will give life to our local businesses again,” he said.