Northern population’s 27% boom to offset Johor Bahru spending leak: FCT

Rising prices in JB and 50,000 new local units offer a buffer against retail leakage.

Frasers Centrepoint Asset Management Ltd., manager of Frasers Centrepoint Trust (FCT), said growth in northern Singapore is expected to outweigh any increase in cross-border retail spending following the opening of the Johor Bahru–Singapore Rapid Transit System Link later this year.

The forecast is underpinned by a growing working population and residential catchment in the region, alongside the trust’s tenant mix strategy, FCT said in an SGX announcement.

Based on CBRE estimates, retail sales leakage could rise from 3%–4% currently to about 5% by 2032. Meanwhile, the region is expected to experience up to 27% growth in residential population with over 50,000 residential units added over the next 10 to 15 years.

The North will also gain improved transport connectivity to the rest of Singapore through the North-South Corridor, a 21.5km integrated route linking the northern towns of Woodlands, Sembawang, and Yishun directly to the city centre.

Meanwhile, Malaysian food and beverage brands such as Oriental Kopi and Zus Coffee are already operating in FCT malls, whilst rising prices in Johor Bahru have reduced cross-border price differentials.

The trust noted that the manager is aware of market concerns regarding retail spending shifts towards Johor Bahru and has reviewed the matter extensively to assess the current market trends and implications.