- Joined
- Apr 28, 2012
- Messages
- 186
- Points
- 18
I do think it is unlikely that prices will go back to the level of 2 to 3 years back where HH gateway intermediate terraces were selling below $400K but consolidation is likely.
Yes, new infrastructures are being built and more companies are expected to set up business in Nusajaya. More workers will be employed to take up job there. So there will be a lot of people coming to the area to work and buy/rent properties for stay. But we have to go beneath that surface to see whether there is any solid fundamental to justify the current high prices that developer are asking.
Are the workers there gonna be paid salary equivalent to their counterparts in Singapore? Its very unlikely except for a small percentage of foreign talent experts recruited to kickstart the companies set up by foreigners. Most of the workers will have to come from Malaysia itself as the Malaysian govt will not and cannot be as open as Singapore in its foreign talent workers policy as they will risk being voted out by its people in the next election.
Will the companies setting up in Nusajaya willing to pay more to the workers than it is necessary? Who would want to procure their services if it is not much cheaper than in Singapore? So it is very unlikely these workers will be paid anywhere near their equivalent in Singapore. So I would say most of these workers will not be able to afford to buy or rent the type of properties that is currently bought by Singaporean and Singapore PRs at current price level, not in this decade. They will probably help to boost up demand for mass market properties below $500K instead.
So the current price level of Iskandar properties has still eventually got to be supported by Singaporeans and SPRs buying for residence as well as the high resale/rental values of Singapore HDB flats. The foreign investors(whether they are aware or not) are mainly buying into this factor, as this is the main push to catapult their property prices.
The new infrastructures are the means to attract more Singaporeans and SPRs to take up residence in Iskandar region. But with increasing congested immigration crossing, its attractive force may have hit the limit as the only way to commute to work in Singapore from Iskandar is by bus and car. The future MRT link will be the solution to push the limit further.
To say that the current developer high asking prices are mainly due to increases in labour and material cost is to further help feed the developer's greed. No doubt it may be a factor, but not big enough to justify such high increase. There is a developer who increases its asking price by more than $100k for the same project but the quality are the same for all the units.
On this quality point, at such current high level, I would advise buyers to be more selective in the quality of the material given by the developer. This particular developer, though provided laminated flooring for the upper floor but I must say its quality is not acceptable at current high prices. The laminated flooring felt bouncy like you are walking on Nike Air shoes; I doubt it would withstand the weight of your solid wood wardrobe and bed. The aluminum windows fitting feels like it will pop out if you lean against it. Their bathrooms are fitted with cheap PVC doors, one that would not even be able to withstand a single kick from intruders. Those buyers who bought the units at current high prices I doubt they will be able to accept its quality. They may have to burnt a big hole in their pockets to have the laminated flooring and windows replaced. Those buyers who choose not to replace them may be facing a bigger problem a few years down after they moved in; it will be a bigger hassle to replace them then.
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