Hi Frodo...
For early investors; only concern is for the property to be fully complete and the unit been hang over. Current owners whom invest a few years ago don't need to care about any negativity because new launch prices are 50%-100% higher than condos sold a few years ago.
Current buyers will (even you buy for own stay) need to pay a higher price (psf) and a few years to wait if you buy newly launch property.
Risk 1: You pay higher hence chance of making a profit is much lesser. Even price stay the same inflation and high interest will eat you up alive.
Risk 2: If you property is not well marketed and few units are sold; the developer may have problem service their bank loan and may up in bankruptcy. (a bankrupt developer does not mean the people that run it are broke. Just the company is screwed together with the owners.)
Risk 3: If you buy from a China developers; you are not only expose to risk of Malaysia and also risk of those China Developer going bust in their home country.
There are 5 zones in Iskandar. I am only interested in Zone A because I am Kiasi.
Zone B,C,D and E simply got too much undeveloped land. Some zone may get some form of success, but maybe 10-20 years later.
When I visit the showflat in other zone selling 103 years lease projects; it look more like a trap than a chance to make some good profit.
I see more cons now. I probably put my money under my mattress and wait.
The writer says to avoid "for now", but I suppose that is his advice for investors. For BTO (buy to own) people, now is still a good time to get a good bargain price. Who knows once the first track is laid for HSR, things move upwards? Ok...I am being pathetically hopeful....