Setia Sky 88: Riding on Johor Bahru’s recovery and future growth
/ EdgeProp Singapore |
Setia Sky 88, a completed development by Malaysian-listed develop S P Setia, is expected to benefit from catalytic developments in Johor Bahru (Picture: S P Setia)
SINGAPORE (EDGEPROP) - The recovery in Johor’s property market from the pandemic is starting to gain momentum. Last year, the state recorded property transactions worth RM19.22 billion ($6 billion), up nearly 15% from the RM16.79 billion clocked in 2020, according to data cited by Malaysian real estate company Zerin Properties.
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Property prices in Johor are expected to gradually pick up this year as the borders between Malaysia and Singapore reopen, providing a crucial boost to the economy. Since land borders between the countries were reopened on April 1, the number of travellers passing through the Woodlands and Tuas Checkpoints has steadily increased — hitting a high of over 282,000 travellers per day during the first weekend of July.
Johor’s property market is geared for recovery as the reopening of Malaysia and Singapore’s borders offer a crucial boost to the economy (Picture: Bloomberg)
The return of Singapore visitors to Johor, along with the wider easing of pandemic-related safety measures, is expected to revive various sectors such as retail, tourism and hospitality. This will, in turn, provide an uplift to the real estate market as sentiment improves. Already, the property market in the state’s capital Johor Bahru is seeing an increase in activity.
At Setia Sky 88, a freehold condominium in the city by Malaysian-listed developer S P Setia, interest has picked up considerably from both local and Singaporean buyers. “We have been bringing in several groups from Singapore to Johor Bahru for viewings at Setia Sky 88,” says Vincent Kwa, manager at S P Setia International.
Landmark development
Setia Sky 88 comprises three towers spanning 55 storeys each, making it one of the tallest residential buildings in the city. There are a total of 588 units, comprising a mix of one-bedroom apartments going up to three-bedroom plus study, with sizes ranging from 678 sq ft to 1,389 sq ft. The development, which was completed in 2017, is designed as an upscale residential offering. Units come equipped with fixtures and appliances, including kitchen cabinets, bedroom wardrobes, refrigerator and washing machine cum dryer. Besides round-the-clock security and concierge services, residents have access to a variety of facilities spread across several different levels.
Setia Sky 88, a completed development by Malaysian-listed develop S P Setia, is expected to benefit from catalytic developments in Johor Bahru (Picture: S P Setia)
At level three, residents have access to a visitor’s lounge and business centre while recreational facilities are available on levels eight and nine, including an infinity pool, squash court, gym, theatre and music room. On levels 42 to 44, another pool is available with views overlooking the city, in addition to a wine lounge and karaoke room.
A key appeal of the development is its location at the heart of the city. Situated just a short drive away from the Sultan Iskandar Customs, Immigration and Quarantine Complex (CIQ BSI), it offers convenient access to the Johor-Singapore Causeway. Residents at Setia Sky 88 can take a free shuttle bus service provided that goes to the checkpoint daily. The proximity to Singapore is a reason why Setia Sky 88 is popular among Singaporean buyers, who make up the second largest group of purchasers after Malaysians, notes S P Setia’s Kwa.
The pool on level 42 of Setia Sky 88 offers panoramic views of the city (Picture: S P Setia)
Affordable quantum
Singaporean buyers at Setia Sky 88 include both those buying for investment purposes as well as those looking to occupy the unit themselves, Kwa adds. A major draw is the more affordable quantum of units at the development relative to homes in Singapore. “For Singaporeans, they’re able to buy a bigger property compared to what they could get in Singapore, at more affordable prices,” he explains. Units are still available at Setia Sky 88, with prices starting from $155,000 for a one-bedroom apartment.
While the Johor state government imposes a minimum purchase price for foreigners at RM1 million for high-rise residential properties, Setia Sky 88 is exempted from the requirement, with no restrictions on foreign ownership on units priced below RM1 million. Currently, foreigners that own property in Malaysia are subject to a Real Property Gains Tax of 30% on gains made if they dispose of their property within the first five years of ownership, or 10% from the sixth year onwards.
The gym at Setia Sky 88 (Picture: S P Setia)
Catalytic projects
As Johor returns to a state of normalcy, major infrastructure projects have resumed and are expected to propel the state’s development. Among these is the much anticipated Johor Bahru-Singapore Rapid Transit System (RTS) Link — a 4km cross-border rail project that connects a terminal at Singapore’s Woodlands North to a Malaysian terminal in Bukit Chagar, located next to the Johor Bahru checkpoint.
It is scheduled for completion by the end of 2026. When it commences operations, the RTS Link is expected to carry up to 10,000 passengers per hour in each direction, with the journey time between both stations taking roughly five minutes. S P Setia International’s general manager Neo Keng Hoe believes the RTS Link and the improved connectivity to Singapore further enhance the value proposition of Setia Sky 88 to Singaporeans. “The better connectivity will be useful for those looking for a second home or a holiday home in the Johor Bahru city centre,” he says.
Woodlands Bus Interchange. Connectivity between Johor Bahru and Singapore is expected to further improve with the completion of the Johor Bahru-Singapore Rapid Transit System (Picture: Albert Chua/The Edge Singapore)
The construction of an RM4 billion integrated development connected to the Bukit Chagar RTS Link station is also currently underway. Dubbed Coronation Square, the development is targeted at revitalising the city centre and will include a shopping mall, residential and office towers, a hotel and medical suites.
The project will be completed in phases from this year, with full completion targeted by 2028. It is the first project under the Ibrahim International Investment District (IIBD), a 250-acre development project by the Johor state government to transform Johor Bahru into a world-class metropolis.
Meanwhile, the state government is also pushing other projects to improve connectivity within Johor. The construction of the Iskandar Rapid Transit (IRT) — which connects Johor’s air, land and sea transport hubs — is scheduled to start this year, while a proposal for a light rail system within the Johor Bahru metropolitan region is currently being assessed.
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