SG Iskandar housing demand can't match KL yet: report
Property Here - Wednesday, April 03, 2013
By Farah Wahida:
Despite higher sales in Johor since 2009, property demand in Iskandar Malaysia will take a longer time to match Selangor and Kuala Lumpur, according to PublicInvest Research.
“But the bulk of property sales, especially for the properties valued at RM500,000 (S$200,449) and above is still driven by the market in Selangor and Kuala Lumpur. Hence, we believe the property demand despite showing encouraging uptrend, the sheer size of Iskandar Malaysia would mean that any meaningful sales growth going forward depends on the acceleration of foreign interests largely from Singapore to absorb the incoming supply.”
The recent cooling measures in Singapore have also fuelled interest in Iskandar, noted PublicInvest.
“Ultimately, we believe the key is still tapping the demand from Singapore…With a bulk of the purchasers consisting of Singaporeans or Malaysians working in Singapore, we look at the sales trend of property both in Singapore and Johor.”
The sheer size of Iskandar, which is three times that of Singapore or 2,217 sq m, suggests that demand will gradually stabilise.
For properties above RM500,000 per unit, Johor sells about 1,000 units (up from 300 in 2008) compared to Kuala Lumpur’s 10,000 and Selangor’s 18,000.
In terms of hotspots, the research agency likes Medini (Eastern & Oriental Bhd) and Nusajaya (UEM Land Holdings) as they house most of the catalytic projects, Danga Bay for having the longest coastline and Leisure Farm for its well-designed master plan with golf courses, equestrian facilities and multi–tiered security.
PublicInvest also believes the proposed Johor Bahru-Singapore rapid transit system and Kuala Lumpur-Singapore high speed rail will significantly improve connectivity within the area, while enhancing its appeal.
Farah Wahida, Editor of PropertyGuru Malaysia, wrote this story. To contact her about this or other stories firstname.lastname@example.org