Iskandar Malaysia’s property boom is not all good as some sectors may actually be hit by a few side effects, reported Business Times.
According to Wee Soon Chit, Director at CB Richard Ellis (Johor) Sdn Bhd, some wage earners are concerned over soaring property prices in the region, particularly in Johor Bahru city centre, Nusajaya and Kulaijaya locality.
However, Wee said that, “Only newly launched properties have been recording steep increase in prices. One can still acquire a standard single-storey terraced house from the secondary market at about RM130,000 to RM150,000 in Pasir Gudang and Kulai.”
In terms of the upcoming general election, he believes that it will have little bearing on the real estate market. While not providing a specific forecast, Wee said foreign interest is expected to increase.
Meanwhile, David Neubronner, Head of Residential Project Sales at Singapore-based Jones Lang LaSalle, noticed that Iskandar’s development has attracted interest from everyone who wants to take a bite of the growth.
However, keen investors must take into consideration some factors such as security, delivery of quality finishes as well as potential oversupply. Oversupply is particularly possible in condo projects, given the availability of various schemes. Hence, buyers must only invest on reputable developers with good track record.
“Land and landed properties are also better investment options. Land is a scarce commodity and hence values will be more resilient.”
Aside from that, buyers must also seek for assets with unique features. For instance, waterfront homes offer a premium that “is worth paying as they have a global appeal. They also command higher rental and resale values as they are highly sought after and supply is limited,” said Neubronner.
Investors are also concerned over inconsistencies, lack of transparency and bureaucracy when investing on Iskandar property.