One of the respected property consultant view :
"Ku Swee Yong, CEO, International Property Advisor, said: “How come these launches are held in Singapore and not Kuala Lumpur? Because people in Kuala Lumpur would not accept a price of 900 ringgit per square foot (psf) at Puteri Harbour when in KL, Bukit Bintang, your new launches may be 1300, up to the most expensive 2000 ringgit psf. Slightly older properties that are freehold are 900 ringgit psf at Bukit Bintang, that’s where the expats are. For investors who are seriously keen to get a pad in Iskandar, look around at second-hand properties at Johor Bahru City Centre, second hand properties could still be at the 400 ringgit psf mark.”
Analysts also warn investors that it may not be easy selling a resale home in Malaysia.
Mr Ku said: “Resale is a very thin market, could be less than 10 percent of the total volume per year. So many investors are sitting on paper gains, those who have gone into Iskandar in 2006, 2007, prior to Lehman crisis. Today, they are sitting on paper gains of maybe 100 percent, but to find a buyer to take over your property on the resale market is very tough, because of the abundant supply of new sales.”
Iskandar Malaysia is three times the size of Singapore and it is estimated to have a population of over 1.3 million people by 2025.
Analysts say there may be a need to ramp up population growth and job creation in order to drive rental returns for property investors.
Mr Ku said, “Rental returns there then depends on job creation, so with so much residential launches we need to see a significant level of support from industrial and commercial investments, where enterprises are creating new jobs there.”
