Developers in Johor to gain from transport projects

PETALING JAYA: Key developers with land and development exposure along the proposed Elevated Autonomous Rapid Transit (E-ART) corridors in Johor Baru will benefit most with improved accessibility and rising land values.

IOI Properties Group Bhd, Sunway Group Bhd, UEM Sunrise Bhd, Mah Sing Group Bhd, IGB Bhd, KSL Holdings Bhd, WCT Holdings Bhd and Scientex Bhd are among the companies expected to gain.

Hong Leong Investment Bank Research (HLIB Research) maintains its “overweight” rating on the property sector with top picks being IOI Properties, OSK Group Bhd, Sunway, and Sime Darby Property Bhd.

The proposed Bandar Putra E-ART station is located within IOI Properties’s Bandar Putra Kulai township.

Sunway’s key exposures along the E-ART alignment include the Sunway Bukit Chagar transit-oriented development project near the JB Sentral station, Sunway City Iskandar Puteri township near the Anjung station and Sunway Lenang Heights in Taman Molek, located close to the Johor Jaya station.

Gerbang Nusajaya’s E-ART station falls within UEM Sunrise’s Gerbang Nusajaya township, while the Horizon Hills E-ART station is situated within the Horizon Hills township.

Mah Sing’s Meridin East township is located near the Kota Masai station, while its M Tiara project is close to the Stadium JDT station, and M Grand Minori is near Pasir Pelangi station.

HLIB Research said IGB is poised to be among the largest beneficiaries of the E-ART rollout, with Southkey being identified as one of the key transit-oriented developments.

Other developers to benefit include KSL with projects near the JB Sentral, Stadium JDT, Sungai Melayu, and Ulu Tiram stations, WCT near the Paradigm station, and Scientex near the Scientex amd Scientex Masai stations, the research house added.

The E-ART system is a crucial component of Johor Baru’s integrated transport network, serving as the dispersal network for commuters arriving via the Johor Baru–Singapore Rapid Transit System (RTS), expected to begin operations by early 2027.

The E-ART is expected to deliver a broad rise in land and real estate values across Johor, especially for areas surrounding the proposed stations, the research house said.

Land and projects located near E-ART stations are anticipated to enjoy higher permissible densities and plot ratios, it adds.

The designated transit-oriented development zones act as key interchanges and are expected to see the strongest value appreciation, supported by concentrated infrastructure and commercial development.

With the completion of both the RTS and E-ART systems, Singaporean visitors and investors will gain easier access to new inland areas of Johor, enhancing the appeal of residential, retail, and tourism destinations that were previously less connected.

For industrial and logistics assets, improved links between RTS Bukit Chagar, Senai Airport, and Port of Tanjung Pelepas will strengthen cross-border mobility and reinforce Johor’s role as a southern manufacturing and logistics hub, the research house added.

HLIB Research expects a multi-line phase for the transport networks, covering core corridors, which may be completed by 2031 or 2032.

Full integration, including an entire ecosystem of interchanges, park and ride facilities and supporting infrastructure, is likely achievable by 2035, the research house added.