Iskandar demand looks good for next decade, experts say

Puteri Bay in Malaysia

Iskandar props up Johor, and Singapore props up Iskandar.

At least, that seems to be the consensus among property agents in the region, who expect that despite a slew of launches, the market will remain strong in the near term.

“It is a cyclical industry. There could be an oversupply but this will not be for another 10 years,” Zerin Properties chief executive officer Previn Singhe told StarBiz.

Iskandar has seen several recent launches, including properties in Iskandar Waterfront Holding Bhd’s RM80 billion (US$26 billion) coastline project.

For demand to keep pace with supply, the area will need continued support from Singaporean buyers and long-term policies that allow foreign investment and keep interest rates low, without creating an artificial property bubble.

Singapore has so far led demand on the southern tip of Malaysia. “Malaysia’s existing population will not be able to absorb all the new properties on their own,” Johor Baru-based V. Sivadas, executive director of PA International Property Consultants Sdn Bhd told the (Malaysian) Star.

Sivadas pointed out that the proposed high-speed rail between Singapore and Malaysia would create “instand demand” in the region.

CB Richard Ellis (Johor) director Wee Soon Chit said that the serviced apartment sector, despite a sudden increase in supply, was at it’s highest prices ever, with apartments going for between RM500 and RM 600 (US$165 and US$198) psft.

Property prices in many sectors across the region are hitting new highs. “One of the semi-detached houses in East Ledang sold for RM1.6mil. This is a new benchmark,” Wee said.

UEM Land Holdings Bhd’s Imperia Puteri Harbour, the group’s first residential development there, has sold 152 units, or 65 per cent, since its soft launch last September. Singaporeans bought 90 of these units.