Ha, ha... Hear only the good stuff......
Reproducing this article below. Some Singapore buyers are already getting worried or concerned. They should.
I don't agree with the writer on using it as a holiday home or worse, storage space! These are just lame excuses to find ways to make use of a white elephant. The cost of the condo paid by a buyer does not justify to utilize it that way. This is an example of what I mean to face the facts and work out your investment situation. Don't pretend or imagine.
My own advice is to cut losses if possible. But that's just me. The reality is out there now. All those hype created by local property agents (to me they are nothing more than mere salesmen) back in 2013 is rubbish. The truth is revealing itself now. The individual buyers got to decide for themselves what's best -- Stay on to incur more losses along the way, hope for the best (usually it turns out otherwise), or get out.
Phantom Ghost Market in Medini
Since the beginning of the year, there were more completion and handover of condominiums in Medini and Puteri Harbour. I have received some emails from Medini owners anxious of what to do next. They bought these houses as “investments” and there are now no returns in their foreseeable future.
Yes, Medini condo owners are facing the worst tough market. The market is thin. The locals are not here and neither are the foreigners. Amenities such as shopping and food outlets are scarce too.
To make things even worse, there are many more units coming on-stream. With almost all being SOHO or small and two bedroom units, potential tenants in Iskandar Puteri can really choose. It’s a huge supply dominating over small demand. Not much hope of great returns in this regard.
The fact is, these buyers were never going to live in Medini. They are Singapore-based investors. They don’t want to live there and can’t rent them out. Double Whammy! (A footnote to developers is never to sell property with hype.)
My prognosis on the whole is that the tenancy market is alive. But it’s mostly restricted to the higher-end landed property type. The clients are senior executives and business owners with children in the Educity and universities. In fact, I see prices of East Ledang bungalows rising in value rapidly soon because of diminishing supply of high-end investors.
Job generation of multinational companies in Iskandar Puteri is growing but it’s nevertheless starting from small base compared to the Klang Valley and Penang.
When you buy a property for rental alone, it is best to buy in a location where there is already hefty demand. But Medini is new. Buyers would have done better facing up to reality of opportunities and costs, honestly. If we follow the herd, we are part of the herd. There are no two-ways about it.
Another factor is that there are many new serviced apartments in the Medini vicinity. They are your competitors.
My best suggestion is that these owners find a use for their condominiums instead of waiting. Most units are just so well built with great views! They can for example use them as holiday homes or just storage units.
Personally, I don’t like short term stay model as it creates an unpredictable quality of environment for owners and long term residents.
The progress of Medini is assured. The relevant planning and economic entities such as Medini Iskandar are sparing no efforts and they are focused to make Medini a vibrant metropolis as planned. I’m optimistic they know the situation and how jobs must be created and talents retained. But economic development is a mid-term target.
So, the next best thing to do really is to enjoy the high quality of living in Medini and surrounding Iskandar Puteri. For Singapore-based investors, a weekly sojourn is sufficient to enjoy the huge space and recreational opportunities available here.
A few years ago, when so many condos in Iskandar were launched, I had agents in Singapore and JB coming to me, saying, IMAGINE very soon, you will be commuting in and out of Johor conveniently either using the RTS or HSR. They will be completed in 2018 and 2020 respectively. Iskandar will be a bustling place full of life. People will live in Johor and work in SG, enjoying the best of both worlds. Life will be soooo good!
