Remembering Lee Kuan Yew - Thank you - The nation with you in your final journey - See u in heaven

Remembering Lee Kuan Yew - Thank you - The nation with you in your final journey - See u in heaven
Presented to you by Property Smart Investor- A Real Estate Online Education and Discussion

Wednesday, 20 May 2015

5 reasons to be careful when buying residential property in Johor and Iskandar

5 reasons to be careful when buying residential property in Johor and Iskandar

5 reasons to be careful when buying residential property in Johor and Iskandar




Private properties in Nusajaya, Iskandar. The huge number of residential units coming up in Johor, particularly in Iskandar, has raised the concern of the Singapore Government. -- ST PHOTO: KEVIN LIM 


The huge number of residential units coming up in Johor, particularly in Iskandar, the development zone coming up to the south of the state, has raised the concern of the Singapore Government.
This is because a glut could cause a fall in property values.
The following are five reasons to be more careful when looking to buy across the border.
1. The looming supply
The Monetary Authority of Singapore board member Lawrence Wong told Parliament on May 11 that nearly 336,000 private residential units are in the pipeline in Johor, more than all the private homes currently standing in Singapore.Most of these units are coming up in Iskandar.
Malaysia's National Property Information Centre (Napic) said in its report released last month that ""incoming supply" of housing units in Johor state - units that are being built - total 142,567 units.
There are another 193,271 units under "planned supply" - with planning approval but awaiting construction.
Added together, they total 335,838 units.
This is nearly half of existing residential stock in Johor, which totals 719,421 units.
2. Even more supply from reclaimed land
An artist’s impression of Forest City in Johor. -- PHOTO: COUNTRY GARDEN PACIFICVIEW
The new units of homes coming up in Johor do not include another 1,400ha of reclaimed land near the Tuas Second Link that will come on stream from 2020, Mr Wong said.
The project he was referring to is the raising of four giant islands in the Strait of Johor off Tuas, that is named Forest City.
The master developer, Country Garden Pacificview said that when fully completed in 20 to 30 years' time, Forest City could have total residents of 700,000. The first phase of reclamation is to be ready in about five years' time.
Assuming one residential unit contains six people, it means that 116,666 homes would be built on Forest City over the next two decades or so, adding to the new supply of nearly 336,000.
3. Falling property prices
Johor property prices weakened the most in Malaysia in the last quarter of 2014, the latest period where data is available.
Johor prices dropped by 1 per cent in the September to December 2014 period, compared to the same quarter a year ago, according to a Maybank research report in April.
This is worse than the drop of 0.2 per cent for property prices in Kuala Lumpur, and a drop of 0.1 per cent in Penang during the same comparative period, Maybank said.
Kuala Lumpur, Penang and southern Johor are three most active property markets in Malaysia.
Mr Wong told Parliament that the number of Malaysian properties - not just in Johor - bought through real estate agents in Singapore fell from 2,609 in 2013 to 838 last year.
4. Curbs on foreign home buyers
Malaysia early last year doubled the minimum price of homes that foreigners can buy to RM1 million, thus reducing the number eligible to buy units in Johor.
In a move to curb then rising property prices, it also raised the capital gains tax to 30 per cent for properties sold by foreigners within five years of purchase. It taxes them 5 per cent thereafter, except for the Medini township in Iskandar. Medini is to be the downtown area for the Nusajaya flagship zone.
5. Danger of projects being abandoned
With the looming oversupply, there is the usual concern that sharp price falls could follow, and lead to some developers from completing their projects if their funds run dry as buyers stop coming in.
This is a remote possibility now in Iskandar. But there are signs of stress for developers already.
Maybank said in its report, that developers with land in the region are deferring their launches, or changing their property mix "so to avoid direct competition with the Chinese developers". They have also lowered their sales expectations for Iskandar, the bank said.
The Straits Times / Business           Published on Thursday, 14 May 2015
By Reme Ahmad, Assistant Money Editor
5 reasons to be careful when buying residential property in Johor and Iskandar


Please click the following for other Related Readings:



Malaysia's transport agency says CEO misquoted on high-speed rail 















HDB to launch high-tech flats in Punggol


Lakeside project launched in Iskandar

Developers face hefty extension charges over unsold units (Amended)

Govt releases new developer rules on show units, sales data

Changes to Housing Developers (Control and Licensing) Act effective May 25

Government releases EC site in Choa Chu Kang for sale










More companies buying strata offices


Bids for Paya Lebar site likely to top $1b - Government Land Sale (GLS)

Please Click following LINK for RELATED Post




My Tribute to Mr Lee Kuan Yew - Remembering Lee Kuan Yew - The world should know his stories, his contribution and his final journey - The Legend - He will be in the heart of every Singaporean 












No comments:

Post a comment