Boom in Johor property market
EXACTLY a month ago when Country Garden Holdings Ltd announced that it was launching the Country Garden Danga Bay upscale property development sprawling 23 hectares in Danga Bay, Johor Baru, many were a little sceptical.
I was among the many as I wrote in my last commentary: "How many locals are bringing home 'five-star' salary cheques?"
My visit to the sales gallery on Saturday changed that thought.
I found it so intriguing, I went to the sales gallery again on Sunday. I am convinced now that Johor has many rich people.
Let me rephrase that. Johor's property market is in vibrant health.
Some buyers I believe were attracted by the fact that they could easily get their RM8,000 deposit back should they fail to get a loan from the bank.
As one young potential buyer there told me, she bravely put in the RM8,000 to lock in the unit that she had her eyes on.
"My husband and I have been looking around for the past one year or so.
"We went to a few residential areas, but this is the kind of lifestyle that we want for ourselves and our children," said the woman named Jill (not her real name).
Jill, in her 30s, who is a local working in Singapore, said she and her husband booked a unit pegged at RM700,000.
"With our combined salaries, we should be able to service the loan which will only start about three years later.
"Since we loved the unit so much, both of us will have to be disciplined and save every cent that we earn.
"It is good that we now have a goal to save money," she said, adding that should their loan be rejected, they could get a refund of the RM8,000.
It was fascinating to see the way the people were snapping up the available units like they were buying kuih at a market.
One sales staff described it as "buying vegetables in the wet market".
"Competition is stiff as there are between 300 and 400 sales staff vying for customers. We have to meet sales quotas or we will lose our jobs.
"The company is strict. A few staff have been told to leave after they were found to have a hand in property speculation," he said.
Apart from organising the Euro fun park, which coincides with the sales launch, the developer also introduced a scheme that offered discounts to buyers if they can get two others to sign together with them.
Back to Jill, who told me she had come to the sales office early that morning because she wanted to look for two buyers to sign with her.
"I managed to persuade my brother to buy a unit. I was still short of another buyer which will entitle me to the discount, so I approached this gentleman at the sales office.
"He looked stern as I first approached him. Later, I found out that he was frustrated as he couldn't find a single relative or close friend to buy the property with him as he, too, wanted to enjoy the discount."
Jill managed to get a discount of RM3,800 from her purchase.
It seems the higher-end units pegged at more than RM1 million have been fully sold. The ones available are the studio units and one-bedroom units pegged from RM400,000 onwards.
Even these units are going fast as buyers are locking in on them before they are snapped up by others.
I think some are adopting the "kiasu" attitude while some are following the crowd in fear that they would be left out of the rat race.
Checks on two other property developers revealed that the demand for high-rise units is on the rise as units were taken up almost immediately after they were launched.
Visitors flockingflocked to the Country Garden Danga Bay sales gallery over the weekend. STR/Pic by Chuah Bee Kim
