Spurred by the mega government-to-government joint venture projects and strong support from Singapore, Iskandar’s property market is expected to catch up with that of Malaysia’s Klang Valley, according to Kenanga Research and reported The Borneo Post.
The research house said the region is set to become Malaysia’s next property hotspot, adding that Johor-based developers have been attracting many local and foreign investors.
The support shown by both the Malaysia and Singapore governments is also expected to boost Johor’s rapid development.
For instance, Singapore’s sovereign wealth fund Temasek Holdings and its Malaysian counterpart Khazanah Nasional are developing a number of projects in both countries. In Singapore, these include Marina One in Marina South and DUO in the Ophir-Rochor area. Meanwhile, a wellness development will be built in Medini, Iskandar.
Kenanga Research added: “Both governments have agreed to a Johor-Singapore My Rapid Transit and the KL-Singapore High-Speed Rail which is viewed positively by the rest of the world.”
With these developments, Johor’s property market will soon be on par with that of Klang Valley. Kenanga Research pointed out that new cluster homes in prime gated communities there are now priced between RM900,000 and RM1,200,000, while bungalows and semi-detached homes cost over RM1.5 million. This translates to an increase of nearly 40 to 70 percent over the last 12 to 18 months.
“Current pricing is narrowing towards average Klang Valley pricing while in the past, Johor used to command steeper discounts of 25 to 35 percent over the last six years,” Kenanga Research said.
Moving forward, property prices in Iskandar may surpass that of Klang Valley, as expatriates and Johorians earning in Singapore dollars have greater purchasing power.
Image: Artist’s impression of the future Danga Bay Waterfront City in Iskandar, Malaysia