Re: The Epic
That is a very strict but safe criteria. However not everyone can afford >$2mil RM Ataska :p
Whether it's safe or not depends on the buying price, not just the location. There's no doubt that JB city center within 2km of Causeway(with MRT linking from Sg in future) is great but - IF the price is right. A location can be good - With MRT and big mall right beside, but the developer can already price-in such factors. So to be safer, we should look at affordability in the view of Singaporeans(or to be more precise - demand from Singapore, because many are expatriates in Sg). Why? Those relatively well-to-do people from Sg are already buying up high-end landed properties somewhere in Iskandar for own stay as they simply love(yes love, not just 'like') the living environment, the space and of course - The affordable price. How do you judge affordability in this case? Solely based on your own financial ability? No! A buyer from Sg who decides to buy and stay in Iskandar has to sacrifice his/her precious time and energy to drive a longer distance and get stuck and frustrated in traffic jams everyday just to go to work in Sg and going back to their house in Iskandar after work. No one in the right mind will sacrifice in this way if he/she can afford the exact same kind of property and living environment in Sg. When one can afford a RM4mil(SGD1.6mil) bungalow with swimming pool in Iskandar, it doesn't mean that he/she can afford a SGD10mil bungalow of the same size and quality in Sg. So affordability
in such cases are totally dependent on Sg's price. That's why when someone tell you that you cannot use Sg's price to judge Iskandar's future price, they just didn't think deep enough. (I'm not saying that every single person who bought in Iskandar cannot afford the same in Sg, there are many high-net-worth multi millionaires from Sg who bought bungalows somewhere in Iskandar for investment and not for own stay - That's different).
We cannot use the same judgement on simply 'anywhere else' in the world but Iskandar because Iskandar is right beside Sg and it can be predicted since the early years of Iskandar(when cumulative investments, with a big percentage from private sector, received by Iskandar was already in tens of billions) that a big part of the future demand will definitely come from Sg especially for the high-end properties. Since a big part of the demand will be from Sg(which already happened), we can definitely take Sg's price to judge Iskandar's future price. For someone from Sg to sacrifice time and effort plus to stay in a place which is not as safe, of course there must be a big discount from Sg's price. A 60% discount will definitely still attract many from Sg. As I've mentioned earlier, prices of such high-end landed properties in Iskandar is still just around 25-30% of Sg's cheapest 99yrs landed in a far corner like Jurong(of course we cannot use the price of a property with just 50 or 60 years of balance lease to compare to Iskandar's Freehold, using the price of a landed with 80 years of balance lease to compare is 'safe' enough). In this case, we don't need to bet on the economical success of Iskandar to make profit. If Iskandar is so economically successful one day and safety improves a great deal, this discount from Sg's price will definitely become smaller due to the increase in demand from Sg, other countries and of course Iskandar itself internally, and we can take such extra profit as a big fat bonus(if you keep your property that long to see that day). I'm not saying that Iskandar will never build a strong and successful economy itself in the long run, but to bet on such a success simply mean extra risk when
compared to betting 'without' the need for an economical success of Iskandar. I'm also not saying that the mid-range or even affordable properties won't appreciate in price, just that the high-end ones will take the lead in setting new highs while the next level will follow after that. You can buy a mid-range property in a 'heartland' township 30km away from the hottest area which takes the lead in price appreciation, but to see appreciation later than others, that's another added risk as
compared to investing in those areas which take the lead in price appreciation. Moreover, in these areas which take the lead, like for example Nusajaya - Land supply is mainly controlled by UEM and IIB, thus the tighter control to prevent over-supply(the threat to strong demand) in this key area.