Iskandar Residences @ Medini

[snowbird]

Yes.... I spoke to this well-known boss of a property agency in SG. In 2013, he recommended investing in Iskandar quite enthusiastically. But in a 2015 talk I attended, he was very quiet about Iskandar and hinted at being careful.

So after the talk, I went to him and asked why the change in opinion. He paused briefly and said the China developer threw everything off balance, especially with Forest City.

The Chinese citizens could have been those who might consider buying other condos in Johor. But now with their own countryman developer building the thousands of new condos in a self-sustaining township, many will flock there instead.

I read that Forest City can accommodate a population of 700,000!!! Wow. Slap me..... That's a huge number hard to imagine. And despite its gigantic size, Forest City is not the only place... there are many other new Johor condos in the pipeline.

Maybe here is a glimpse into the future for you to visualise of what Medini or Forest City may possibly look like.
Please note from the interview that the apartments mostly sold!!!

 

[sgcount]

Very interesting video worth watching. I see a few similarities with what was featured in the documentary and what could happen with Forest City.

Some points I feel worth pondering about:

1. As mentioned in the video, the belief of the Chinese developer is "Built first and people will come". That was the same response of the Country Garden spokesman when asked a few months ago if they were concerned about the oversupply. Scary similarity....

2. To attract buyers, the developer brought them to the site in busloads. This is also the same that is happening to CG Danga Bay and Forest City.

3. Malaysia is faraway from China. Well... at least a few hours of flight time. Would the buyers stay in Johor after buying properties there?

4. In 6:53 of the video I find the commentator's words very chilling and serve as a good reminder/caution:

"There are multiple classes of people that are going to get wiped out by this. People who have invested 3 generations worth of savings.....they will see their investments evaporate."

The ending is equally thought provoking:

"People who can afford it are still continuing to buy....They just don't believe the good times will end."

Maybe here is a glimpse into the future for you to visualise of what Medini or Forest City may possibly look like.
Please note from the interview that the apartments mostly sold!!!

 

[sgcount]

I don't think Medini will be as bad as China's ghost town, even though it certainly looks like it now!

Empty road near Gleneagles and Afiniti

I think Medini will be quiet for at least a few more years to come. After that, I'm not sure. Perhaps it will become a retirees' town more than a bustling metropolis. I can't imagine yet how they are going to spruce it up to be the CBD or attract more people to live here.


Completed but many empty apartments

 

[FHBH12]

Maybe here is a glimpse into the future for you to visualise of what Medini or Forest City may possibly look like.
Please note from the interview that the apartments mostly sold!!!

An Update On China's Largest Ghost City - What Ordos Kangbashi Is Like Today
APR 19, 2016 @ 05:11 PM

http://www.forbes.com/sites/wadeshe...ordos-kangbashi-is-like-today/3/#45621ea134fe

 

[FHBH12]

I don't think Medini will be as bad as China's ghost town, even though it certainly looks like it now!

Empty road near Gleneagles and Afiniti

I think Medini will be quiet for at least a few more years to come. After that, I'm not sure. Perhaps it will become a retirees' town more than a bustling metropolis. I can't imagine yet how they are going to spruce it up to be the CBD or attract more people to live here.


Completed but many empty apartments

Give the area 10 years to let it fill up with more people and activities. A new area takes time to grow.

 

[sgcount]

Give the area 10 years to let it fill up with more people and activities. A new area takes time to grow.

10 years is a very long time where anything can happen. Even if there are more activities by then, the condos will have aged compared to newer ones coming up. Prices now are also higher compared to other areas in Johor with established amenities. Investors and tenants may prefer those instead.

However, having said that, it could be a nice place to live in for retirees. Buy for own stay long term. Not so much for investment.

 

[winners]

However, having said that, it could be a nice place to live in for retirees. Buy for own stay long term. Not so much for investment.

You should have considered buying in old town JB instead of Medini, especially if you don't intend to have a car. Even if in the Medini vicinity, why you didn't consider Puteri Harbor instead? It's freehold and I must also admit, more exclusive.

In 2008/9 when I first began my house hunting in JB, I was even not in favor of Horizon Hills because it was just vast and vast amount of barren land at that time. Even the AEON Mall in Bukit Indah wasn't even up yet.

 

[Tekkun]

You should have considered buying in old town JB instead of Medini, especially if you don't intend to have a car. Even if in the Medini vicinity, why you didn't consider Puteri Harbor instead? It's freehold and I must also admit, more exclusive.

In 2008/9 when I first began my house hunting in JB, I was even not in favor of Horizon Hills because it was just vast and vast amount of barren land at that time. Even the AEON Mall in Bukit Indah wasn't even up yet.

Blame those marketing people in Singapore. Damn good salesmen.
But is it okie. It is still a property. Touch, it is still brick and mortar. Maybe not so tangible but it is still there.
A lot better than trying to invest in Marina Sands.

 

[rotikok]

Blame those marketing people in Singapore. Damn good salesmen.
But is it okie. It is still a property. Touch, it is still brick and mortar. Maybe not so tangible but it is still there.
A lot better than trying to invest in Marina Sands.

Depend when u bought sands, if during GFC, by peak u ady make more than 10 baggers. Go search their stock chart ticker LVS

 

[sgcount]

You should have considered buying in old town JB instead of Medini, especially if you don't intend to have a car. Even if in the Medini vicinity, why you didn't consider Puteri Harbor instead? It's freehold and I must also admit, more exclusive.

In 2008/9 when I first began my house hunting in JB, I was even not in favor of Horizon Hills because it was just vast and vast amount of barren land at that time. Even the AEON Mall in Bukit Indah wasn't even up yet.

I was thinking solely from an investment point of view, not to stay there.

2013 was the year when I thought I would like to put some of my money to better use. Many of us were priced out or not qualified to invest in SG properties. As Tekkun said, the salesmen were damn good at selling Iskandar. They would state all the good stuffs, like it's a no brainer to buy into Iskandar. Today, these people have all gone quiet on Iskandar.

In a way, good thing I didn't buy old JB. Cos I would be stuck with the property now as a foreigner when the min RM1mil rule came in.

Puteri Harbour was out of my budget at more than RM1k psf. As mentioned, my aim was to invest, not to enjoy the environment there.

Only much later, after talking to my Malaysian friends and agents, did I realise the price paid is way too high for their locals to afford or even consider, especially since it is only a condo. Also learned later that rental and reselling it would be very tough or impossible.

Don't you regret you didn't buy Horizon Hills back in 2008/09? You would be able to sell it at a very good profit today.

 

[enjoylife77]

I was thinking solely from an investment point of view, not to stay there.

2013 was the year when I thought I would like to put some of my money to better use. Many of us were priced out or not qualified to invest in SG properties. As Tekkun said, the salesmen were damn good at selling Iskandar. They would state all the good stuffs, like it's a no brainer to buy into Iskandar. Today, these people have all gone quiet on Iskandar.

In a way, good thing I didn't buy old JB. Cos I would be stuck with the property now as a foreigner when the min RM1mil rule came in.

Puteri Harbour was out of my budget at more than RM1k psf. As mentioned, my aim was to invest, not to enjoy the environment there.

Only much later, after talking to my Malaysian friends and agents, did I realise the price paid is way too high for their locals to afford or even consider, especially since it is only a condo. Also learned later that rental and reselling it would be very tough or impossible.

Don't you regret you didn't buy Horizon Hills back in 2008/09? You would be able to sell it at a very good profit today.

2013-2016: What a difference 36 months made

 

[sgcount]

2013-2016: What a difference 36 months made

Yup...If you look at the earlier posts of this Iskandar Residences forum, back in 2013/14, there was so much enthusiasm. It slowly died down and now, I guess most are just putting it aside and waiting for it to complete.

 

[rotikok]

wait till next year then say if medini is remote, after the 'missing link' is completed. Anyway the whole joy of living in JB is to drive around in a car, once you remove the custom jam from the equation, mersing, muar malacca, kL seems like just a short drive away.

Old news, the missing link might be some dissapointed brt, but better then nothing. If can, i would still prefer melb style rather than brisbane style public transport. Hopefully nxt yr is real.

ISKANDAR PUTERI: The government has given the green light for the Bus Rapid Transit (BRT) to continue with its planned implementation in the Iskandar Malaysia growth corridor in southern Johor. Iskandar Regional Development Authority (IRDA) chief executive, Datuk Ismail Ibrahim said the first phase of the transport system was expected to be operational by 2020. He said the BRT system's alignment could likely be determined by late next year, and the public transport network may cover about 90 per cent of the southern Johor growth corridor. "Our intention is to ensure the BRT is implemented before 2020. We received a mandate to continue developing the project , and to offer the proposal to any party which is interested in the investment," said Ismail after a briefing with press bureau chiefs and reporters, here today. The BRT is a transit system that utilises dedicated bus lanes, universal access stations, integrated pedestrian access, rapid boarding and high service frequency aspects. Ismail said the cost of the BRT here would be five to 10 times less than a Mass Rapid Transit system or monorail. He said the BRT system here was based on some of the best existing models being used in Brisbane in Australia and other cities in Europe and the Asia Pacific.

Read More : http://www.nst.com.my/news/2016/03/136255/green-light-iskandar-bus-rapid-transit

 

[rotikok]

Yup...If you look at the earlier posts of this Iskandar Residences forum, back in 2013/14, there was so much enthusiasm. It slowly died down and now, I guess most are just putting it aside and waiting for it to complete.

Investment rule N: dont invest in a ppty when your surrounding are all investors. The demand is not genuine, it is speculative.

Better if go around and survey other buyers during project launch, if everyone say buy for investment, the surely is a bad investment. Same thing apply to shops, everyone invest, no one open shop do business.

 

[sgcount]

Investment rule N: dont invest in a ppty when your surrounding are all investors. The demand is not genuine, it is speculative.

Better if go around and survey other buyers during project launch, if everyone say buy for investment, the surely is a bad investment. Same thing apply to shops, everyone invest, no one open shop do business.

This is one of the best advice I've read so far. Should put a "sticky" to this!

Totally agree with you and I learned it the hard way.

The price increase was hyped up by investors speculating and rushing in to buy. The developer saw the opportunity, and they decided to jack up the prices further compared to nearby condo projects which cost RM200-300 psf less only a year ago.

Innocent or naive buyers interpreted the increase in price as a sign that the property is booming. Agents sweet- talked them further that they had to buy now or else prices would increase even further! So there was a lot of false demand there. It was not supported by real demand but speculation.

For Iskandar Residences, even the Huttons agents cunningly pre-booked several units. They later tried to sell off to potential buyers for a fee of a few thousand S$. Not sure how come the developer allowed this.

 

[Tekkun]

This is one of the best advice I've read so far. Should put a "sticky" to this!

Totally agree with you and I learned it the hard way.

The price increase was hyped up by investors speculating and rushing in to buy. The developer saw the opportunity, and they decided to jack up the prices further compared to nearby condo projects which cost RM200-300 psf less only a year ago.

Innocent or naive buyers interpreted the increase in price as a sign that the property is booming. Agents sweet- talked them further that they had to buy now or else prices would increase even further! So there was a lot of false demand there. It was not supported by real demand but speculation.

For Iskandar Residences, even the Huttons agents cunningly pre-booked several units. They later tried to sell off to potential buyers for a fee of a few thousand S$. Not sure how come the developer allowed this.

Very true.

If all our neighbours say their units are for rentals, it is bad news. We do not know who is going to rent, when it is going to be rented and chances are the tenants are a very mixed type. If it is a luxury one, still not so bad as it is either vacant or the tenant can afford type. If it is a mid price one, then chances are owners will throw prices and all sorts of tenants will come in. Some will share a unit and who knows you have 10 people staying in one unit.
Long ago, I have one house where the friends of my tenant came and stay. I couldn't even count the number of shoes outside the house!!

If for own stay, then very happy cos we know the owners will take care.

 

[winners]

Don't you regret you didn't buy Horizon Hills back in 2008/09? You would be able to sell it at a very good profit today.

Not really because I only need 1 house in JB at that time. So, if I am staying and not selling, there's no profit to be realized. My current 1 has also doubled in value but then I'm also not selling, so no profit to talk about.

Furthermore, my purchase was made in cash and the rate was about RM2.30 at that time, if I remember correctly. This would have also diminished my profit by about 30% today (if I were to sell).

It is not easy to make meaningful profits from short term property investments in JB for foreigners. Don't forget there is the 30% Real Property Gains Tax (RPGT) for foreigners to be paid if you sell your property before the 5th year. There is also the state levy at RM20k or 2% to be paid, whichever is higher when you first make the purchase. And now, the RM1m restriction which greatly limits the pool of buyers. I'm not even considering those nitty gritty ones like VEP (and then Singapore will definitely follow suit with a corresponding increase, thus never ending), crime rates, those crazy daily jams at the borders, etc. With all the above hindrances, I rather put my excess cash in selected Blue Chips instead. Just like what mpan12 previously said: They just want you to park your money in JB indefinitely.

Now, itchy backside and sick of staying in a landed. So, we want to revert to staying in a condo and I'm beginning to look for 1 in JB. But I'm not in a rush, only the one at the right price and location, will I only consider. My JB neighbor told me to wait for another 2 years when the Chinese developers would have completed their first phases and prices will drop further. The biggest obstacle is I may have to buy a penthouse due to the RM1m restriction, but we don't need such a big unit.

 

[sgcount]

I see.... So at the moment, since you are not staying in your JB house, it is left empty or you are renting it out? If you try to sell now, will you be able to find ready buyers at the present value? I read that in JB, because there are so many properties to choose from, even if the price has increased, finding a buyer could be a problem in itself.

The good thing about Medini is we are exempted from RPGT and no RM1mil limit for foreigners. Bad thing is it's a very new place so it lacks amenities, no rental or resale value, and because it is an investors' place with high entry price, the pool of future buyers is extremely few or non-existent. It's also leasehold so not sure if future buyers will mind this or not.

Come to think of it, yes, for foreigners, they can probably make more money from stocks in the long term than invest in Medini or other JB properties.

Not really because I only need 1 house in JB at that time. So, if I am staying and not selling, there's no profit to be realized. My current 1 has also doubled in value but then I'm also not selling, so no profit to talk about.

Furthermore, my purchase was made in cash and the rate was about RM2.30 at that time, if I remember correctly. This would have also diminished my profit by about 30% today (if I were to sell).

It is not easy to make meaningful profits from short term property investments in JB for foreigners. Don't forget there is the 30% Real Property Gains Tax (RPGT) for foreigners to be paid if you sell your property before the 5th year. There is also the state levy at RM20k or 2% to be paid, whichever is higher when you first make the purchase. And now, the RM1m restriction which greatly limits the pool of buyers. I'm not even considering those nitty gritty ones like VEP (and then Singapore will definitely follow suit with a corresponding increase, thus never ending), crime rates, those crazy daily jams at the borders, etc. With all the above hindrances, I rather put my excess cash in selected Blue Chips instead. Just like what mpan12 previously said: They just want you to park your money in JB indefinitely.

Now, itchy backside and sick of staying in a landed. So, we want to revert to staying in a condo and I'm beginning to look for 1 in JB. But I'm not in a rush, only the one at the right price and location, will I only consider. My JB neighbor told me to wait for another 2 years when the Chinese developers would have completed their first phases and prices will drop further. The biggest obstacle is I may have to buy a penthouse due to the RM1m restriction, but we don't need such a big unit.

 

[winners]

I see.... So at the moment, since you are not staying in your JB house, it is left empty or you are renting it out? If you try to sell now, will you be able to find ready buyers at the present value? I read that in JB, because there are so many properties to choose from, even if the price has increased, finding a buyer could be a problem in itself.

We have been staying in the JB house since 2010. Just that if we want to consider a second property in JB in future, it's most likely to be a condo. Currently, I have no intention of selling it. Presently, it's a buyers market and sellers will be disadvantaged.

 

[sgcount]

We have been staying in the JB house since 2010. Just that if we want to consider a second property in JB in future, it's most likely to be a condo. Currently, I have no intention of selling it. Presently, it's a buyers market and sellers will be disadvantaged.

Opps... I thought you live in Singapore because you mentioned the hassle of being stuck in jams and the expensive VEP thing....