Property experts expect the market to decelerate between four and six months after the Goods and Services Tax (GST) is implemented in the country, but expect it to stage a rebound later. The spike in property sales could be seen in the months leading up to April 1 next year to compensate for the pre-GST market downturn. However, the property market will rebound because supply and demand play a bigger role where properties are concerned.
There has been a lot of talk about the incoming supply of residential units in Iskandar Malaysia.
Let me share with you on my friend analyst Joan O B’s thought on this:
Unlike the supply of residential units in the old JB City (including Danga Bay), the supply of units in Prime Nusajaya is fully controlled by two entities owned by Khazanah (UEM Land and Iskandar Investment).
Khazanah (via UEM Land and Iskandar Investment) has been investing in catalyst projects to ensure there will be enough demand for the incoming supply of condos in Prime Nusajaya:
Educity & Edu Park
International Schools: Marlborough College and RAS
Ascendas Tech Park
Pinewood Studios & Media Village
Legoland Theme Park
Hello Kitty Theme Park
Sunway Eco Water ThemePark
Suwnay Edu Park
Sunway Healthcare Park
Sunway Man Made Lagoon
Horizon Hill Golf cours and Club
Public Marina at Puteri Harbour (Trader Hotel, Shopping Mall)
Frost and Sullivan Service Excellence Centre (800 skilled employees)
The Markers (office component to house IRDA, and Khazanah Group of Companies)
Avira Wellness Sanctuary (30 acres)
Regional Open Space
High Speed Rail Station at Gerbang Nusajaya
Mall of Medini Lifestyle Destination
It’s all about residential densities.
County Garden Danga Bay is selling 10,000 residential units in just 57 acres, with a density of 175 units/acre while:
Leisure farm: Density of 1 unit/acre (1,700 acres)
East Ledang/Ledang Heights : Density of 3 units/ acre (600 acres)
Horizon Hills; 5 units per acre (1,200 acres)
Suwnay Iskandar will allocate 60% of their land for residential while 40% will be for commercial activities. Sunway will have roughly 20,000 residential units in 1,800 acres while Country Garden at Danga Bay has 10,000 units for just 57!
Puteri Harbour enlarged materplan (including the 3 landed precincts Emerald Bay, D’Estuary and Residential South) will have a density of just 12 units per acre.
In conclusion, Pirme Nusajaya has on one side commercial activities to sustain demand while on the other side a controlled environment with low residential densities.
Folks, Khazanah is here for the long term, they own most of the Prime Nusajaya Land, so it’s on their interest to avoid a supply glut, while in JB City, save for Danga Bay,the land is owned by multiple owners with small land holdings, and thus, they are more focus on the short term.
Khazanah has made very clear that they are here to build, OWN and MANAGE.. so they are for the long term.