Samuel Tan, the chief executive of Olive Tree Property Consultants, said demand for retail space in southern Johor Bahru has outpaced supply due to the impending RTS Link as well as the Johor-Singapore Special Economic Zone.
The former will improve connectivity with Singapore while the latter is expected to grow Johor’s economy.
“These game-changer projects further boost the area’s commercial potential, prompting landlords to raise rents in anticipation of higher demand,” said Tan.
This is inevitable in a free economy, he added.
“For legacy tenants like Salahuddin Bakery who may have been on older leases or paying under-market rents, the rental increase could be even higher,” Tan added.
Checks of online property portals showed that rental for a 1,300 sq ft shophouse at the heritage lane is around RM8,000 to RM9,000 per month.
In contrast, similar-sized lots at other dense locations in Johor Bahru such as Taman Molek, Taman Mount Austin and Bukit Indah are priced between RM2,500 and RM4,500.
Legacy tenants who remain said they worry that rising rents, along with inflation, could put them out of business.
Hiap Joo, a bakery and biscuit factory whose banana cakes are a hit with Singaporean visitors, told CNA that rent for its shop lot on Jalan Tan Hiok Nee has increased by roughly 10 per cent every two years.
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