Singapore’s skyrocketing property prices will benefit Malaysian properties, especially those located within Iskandar Malaysia, revealed Credit Suisse.
“Singapore has the means but lack of land, while Johor has abundance of land but lack of means,” said Yvonne Voon, Equity Research Analyst at Credit Suisse, speaking at a recent real estate forum in Petaling Jaya.
After 20 years of disputes, the relationship between the two countries has turned rosy, allowing Singaporean companies to leverage their status in Malaysia.
“Property prices in Singapore are very unlikely to fall. Nowadays, even real estate giants like CapitaLand Ltd come to Malaysia as the island is running out of land,” noted Voon.
The Singapore government’s review of its Master Plan to convert the use of in particular industrial land could see industrial players relocating to Iskandar, she said.
“It has not gone unnoticed that there are many industrial land parcels in Singapore that are on leasehold basis. Should the government zone it out for other purposes, the industrial companies will have to move their cranes and machineries to Johor,” added Voon.
Romesh Navaratnarajah, Senior Editor at PropertyGuru, edited this story. To contact him about this or other stories email firstname.lastname@example.org