Property News

[xebay11]

Because it would not be living a life if one makes decisions on the premise that he would not have a job at 50. Then no need to make any big ticket item purchase liao, whether in SG or not...don't buy house, no car, don't even get married, or worst to have kids! A single person earning income with no family would be rather storm resilient.

Life is about making decisions, and also having hope, and being hopeful. I am not saying that financial prudence should be thrown out of the window, but that while renting has its advantages, not many will simply take that route simply because it is more economical or cheaper. There are other reasons that make people choose to buy instead of rent.

Unfortunately I have lived long enough to see several dramatic changes in Singapore, when I was in my 30s, the economic environment was very different then, I was invincible and so was Singapore's economy. I would never have seen myself without a job by the time I was 50.

Today the economic landscape in Singapore is really chui, financial sector is collapsing, O&G industries are collapsing and relocating, retail sector is dead, property market is dead. Whatever few jobs left for the taking is taken by foreigners. The chances of being out of a job or under employed by the time one reaches 50 is very, very real and moving forward is going to get worse. I have made my pile and if things get worse will be abandoning ship soon.

It is in the recent times in the past 5 years, taking up a second or third loan is really nearly suicidal unless you target to clear it by 45.

 

[Frodo]

Unfortunately I have lived long enough to see several dramatic changes in Singapore, when I was in my 30s, the economic environment was very different then, I was invincible and so was Singapore's economy. I would never have seen myself without a job by the time I was 50.

Today the economic landscape in Singapore is really chui, financial sector is collapsing, O&G industries are collapsing and relocating, retail sector is dead, property market is dead. Whatever few jobs left for the taking is taken by foreigners. The chances of being out of a job or under employed by the time one reaches 50 is very, very real and moving forward is going to get worse. I have made my pile and if things get worse will be abandoning ship soon.

It is in the recent times in the past 5 years, taking up a second or third loan is really nearly suicidal unless you target to clear it by 45.

Probably all true. Good on you that you are financially well off and have no fear of the storm and can jump ship anytime. But I never had the chance of taking up a second or third loan on property in my early 20s or 30s i.e. the boat never came near to me....so now when the chance comes I took the boat and just hope it floats as I don't intend it to be a suicidal move. For me it's a chance that is simply unavailable in Singapore, but in JB it is a "star" I can just thankfully reach. :p

 

[mpan12]

If a peasant like me (under the definitely pathetic salary category) can just barely afford a JB house (Ok that's not RM1 million because I bought before the bar was raised), those less peasant can definitely afford it.

If you keep calling yourself a "peasant", you become one.

Not sure if you are portraying the true picture as this is the Internet and anyone can type anything, but I feel the phrase "your future lies in your own hands" is so true.

If what you mentioned in the past about your salary is true, it's really quite little for a guy with 2 kids and wife not working (if I got the facts right). But as long as you are happy, I think that's the most important. If you compare yourself to many here, you are financially much weaker but know that there are other poorer people everywhere, be it in Singapore or elsewhere.

The problem with us humans is we sometimes get influenced and feel inferior easily by what we see around them.

A lady colleague of mine once discussed how expensive condos are in Singapore. Many of us agreed and one mentioned a decent sized condo in a good location costs about $2-3 million. That lady smiled a little and said she was referring to an Orchard Road condo which she was contemplating to buy that costs a cool $17 million. All of us gasped and realized we are out of her league and our definition of "expensive" is different from hers.

Moral of the story is: Be happy with what you have. There is no limit to wealth. You may think you're rich or poor, but there are always people out there who are better or worse off than you.

Having said that, I think SG properties are good! I don't mind the smaller size compared to Iskandar ones. It's cozy enough and more than fits my needs. I sleep at peace knowing it has value now and for years to come. Let's face it. Some of us bitch about SG properties being so small and expensive. But remember, without making money from them, many of you won't even be able to buy your Iskandar properties!

 

[freekazoid]

I don't doubt what Frodo said...but say is after say...

Action is what define a man/woman, by purchased, moved, commute, and best of all live, educate, socialize as family unit against the odds for financial betterment in current and future. This spell out not only a man vision...but a united and committed family to this roadmap.

This guy definitely not the "herd" as you call it. Its the opposite. New understanding has bring men to realize to survive is ability to change (not the fittest).

Lastly, thanks mpan for a bite size comment contribution...i read it all this time.

 

[whoami]

Aiyoh. Pigeon hole so small n expensive. Plus cost of living shooting up in singkie land. Tats another factor for me to consider getting a landed property in JB at d cost of a 3 rm HDB flat

 

[Frodo]

If you keep calling yourself a "peasant", you become one.

Not sure if you are portraying the true picture as this is the Internet and anyone can type anything, but I feel the phrase "your future lies in your own hands" is so true.

If what you mentioned in the past about your salary is true, it's really quite little for a guy with 2 kids and wife not working (if I got the facts right). But as long as you are happy, I think that's the most important. If you compare yourself to many here, you are financially much weaker but know that there are other poorer people everywhere, be it in Singapore or elsewhere.

The problem with us humans is we sometimes get influenced and feel inferior easily by what we see around them.

A lady colleague of mine once discussed how expensive condos are in Singapore. Many of us agreed and one mentioned a decent sized condo in a good location costs about $2-3 million. That lady smiled a little and said she was referring to an Orchard Road condo which she was contemplating to buy that costs a cool $17 million. All of us gasped and realized we are out of her league and our definition of "expensive" is different from hers.

Moral of the story is: Be happy with what you have. There is no limit to wealth. You may think you're rich or poor, but there are always people out there who are better or worse off than you.

Having said that, I think SG properties are good! I don't mind the smaller size compared to Iskandar ones. It's cozy enough and more than fits my needs. I sleep at peace knowing it has value now and for years to come. Let's face it. Some of us bitch about SG properties being so small and expensive. But remember, without making money from them, many of you won't even be able to buy your Iskandar properties!

I call myself peasant because I am already one to begin with...and that is the truth.:o

As for definitely pathetic salary, yes that is also true. I am sure if xebay looked over my shoulder to see my ATM balance he will also shake head, maybe he already did! If that is considered quite little for a guy with one wife and two kids...throw in the fact that I have more than two kids.:o

Am I happy with what I have? Well...yes and no. I am happy that I have the opportunity to make the move into JB and own the kind of properties that are beyond my reach in Singapore...but not so happy that still have to struggle with finances, or call that anxiety. It's true that there's no end to comparing what I have with others, so I don't compare...I just envy....and covet...:p

SG properties are certainly good, no doubt about it. But they are expensive lor. As shared before I have a 4 room HDB which I bought in 1998 for $280K. Had contemplating selling it in 2013 to get another larger HDB because of growing family size. Cannot wait for BTO because that would be another 4 years down the road and we needed the space urgently because new baby was born. Did the maths....cash proceeds after less the repayments to CPF and HDB is probably $80K. Tried Sale of Balance Flats scheme but twice unsuccessful...but actually BTO also not good because the new 5 room flats are the same size as my old 4A HDB, hardly a move to more space. And not forgetting there's the HDB resale levy $40K! That would mean about $40K left which is pathetic and barely enough for renovation. So viewed some resale jumbo flat but they are asking at least $700K with $100K COV!!!! To buy jumbo won't be just my own suicide, it's family suicide! What other choice in Singapore for me? Honestly none that I can see. Selling off my HDB to buy another HDB (new or resale) would make me worst off, if not the same as before. So my HDB would not make money for me at all by selling it. The only light I can see at the end of the tunnel for me was JB which my colleague suggested. We could sell the HDB and used the cash proceeds for paying the downpayment and renovations for JB home. But the property agent told me, don't ever sell your HDB, $80K proceeds is hardly much and you will soon be left with nothing from it. Rent it out and you can get that kind of money back in 3 years and still continue to receive income from it. Plus you still have a property in Singapore.

To cut repeated long story short, we decided to bite the bullet and rent out the HDB and move to JB. Only in this sense can HDB property make money for us. Am I grateful for the HDB? Of course. But I am even more grateful for JB because if not for JB there's absolutely no way I could rent out the HDB and in addition own another property in JB. Can I rent in JB? Of course can, but as a long term move rental is not ideal for me, and there is no ownership which is what increasing asset base is all about. And more importantly my wife does not like rental because it's just not her home. It would be hell to live with an unhappy wife who feels restricted in making a home out of a rented unit.:(

 

[freekazoid]

SG properties are certainly good, no doubt about it. But they are expensive lor. As shared before I have a 4 room HDB which I bought in 1998 for $280K.

I bought 5rm resale at $290k in 2006 best thing ever.

And yes...fully agreed...wife and kids rental home for the long term...no way. I would say screw financial wisdom....get a HOME upmost importance.

 

[kopikong99]

HDB is the pau chiak asset class in Singapore. Best asset class investment.
You served NS, your entitlement cos nothing is for free in Singapore.
High ROI, easy financing cos from compulsory CPF contribution which gets locked away, creditors cannot touch, etc..
To rent and monetise for retirement, you need another home to stay, and naturally is Iskandar, not Batam or Melbourne. Far water cannot save near fire.
Also it is never advisable to sell to cash out cos once you get out, very difficult to get in because of all the many gov policies that makes it impossible if you own other properties in Sg, as well as even cheap purchased or inherited properties in Malaysia and elsewhere.

 

[sgcount]

I call myself peasant because I am already one to begin with...and that is the truth.:o

SG properties are certainly good, no doubt about it. But they are expensive lor. As shared before I have a 4 room HDB which I bought in 1998 for $280K. Had contemplating selling it in 2013 to get another larger HDB because of growing family size. Cannot wait for BTO because that would be another 4 years down the road and we needed the space urgently because new baby was born. Did the maths....cash proceeds after less the repayments to CPF and HDB is probably $80K

Bro Frodo.... You mean after so many years from 1998 to 2013, you will only make $80k (after minus return to CPF)? That's not a lot. I've always thought those who bought their flats in the '90s and early 2000 are lucky to have bought their homes cheap.

The government got greedy and ramped up the number of foreigners coming here I think from 2005 onwards. I remember I was in shock when what I thought would be $400+k for a 5 year old flat was actually going for S$600k. Good for those who bought it much earlier. Not good for the younger generation who needs to buy flats now. I wonder how they will cope in another 10-15 years time, given that salaries are not increasing fast enough to catch up.

 

[Frodo]

Bro Frodo.... You mean after so many years from 1998 to 2013, you will only make $80k (after minus return to CPF)? That's not a lot. I've always thought those who bought their flats in the '90s and early 2000 are lucky to have bought their homes cheap.

The government got greedy and ramped up the number of foreigners coming here I think from 2005 onwards. I remember I was in shock when what I thought would be $400+k for a 5 year old flat was actually going for S$600k. Good for those who bought it much earlier. Not good for the younger generation who needs to buy flats now. I wonder how they will cope in another 10-15 years time, given that salaries are not increasing fast enough to catch up.

Yep, quite pathetic right? At that time the selling price was about $470K, took a full 30 year loan, and then after returning HDB and CPF really not much left. If buy another BTO still pay $40K sales levy, balance to do renovation, how much would be left after all these? No way to consider an "upgrade" to condo which is even more expensive. I think those who really made heaps from HDB are mostly those who bought in 1980s.

 

[eric3417]

The main $ making is buy New from HDB.
But recent years the Gap is diminishing.

 

[xebay11]

The main $ making is buy New from HDB.
But recent years the Gap is diminishing.

Buy retail property, collect rent a few years and wait for CA, then sell and repeat.

 

[Frodo]

The main $ making is buy New from HDB.
But recent years the Gap is diminishing.

At that time we did apply for a new flat, but it was at Woodlands and then available options were low floors or wait for four years. Was riding bike with my wife to check out the area and remembered telling her that Woodlands was simply too far and I would cry having to travel so far to work everyday. So we passed by the new flat option to go resale because I did not want to live in faraway Woodlands. Now I live even further beyond Woodlands. Oh the irony!!!!!!

 

[Frodo]

Buy retail property, collect rent a few years and wait for CA, then sell and repeat.

No seed money to begin with leh....

 

[freedom]

Buy retail property, collect rent a few years and wait for CA, then sell and repeat.

Is it still a good time to buy retail property now? From what I understand they can be quite expensive and rental is declining.

 

[xebay11]

Is it still a good time to buy retail property now? From what I understand they can be quite expensive and rental is declining.

Food retail can and yes, you must have a strong head start and keep going up the ladder, owners are asking for 20 to 30 years up front rental as their asking price.

 

[enjoylife77]

Iskandar housing market struggles amid weak interest

The idea that property development in Iskandar would satisfy spillover demand from Singapore was tested to its limit last year.

Despite the weakened Malaysian ringgit, which provided a lower entry cost for investors, there was not a notable increase in sales to foreigners, say developers and analysts. Upfront price discounts of up to 20 per cent by some developers also failed to move units. Some property firms have had to re-strategise product offerings, while others deferred new launches.

Iskandar's housing market continues to struggle, as seen by falling numbers of transactions and project launches last year.

Only about a dozen highrise residential projects were launched last year, compared with 24 in 2014 and 49 in 2013 - making 34,364 units in total - noted Savills.

Sales of condominiums and apartments for the first three quarters of last year fell 23 per cent year on year to 1,368 units, according to most recent figures from the National Property Information Centre (Napic).

Savills Malaysia executive chairman Christopher Boyd told The Straits Times that the fewer launches last year could be due to developers exercising restraint and self-regulation. Some developers could also be facing difficulty in securing financing.

The slowdown was first felt in mid-2014 after reports surfaced in the media on oversupply concerns and rising property prices. The implementation of cooling measures, the goods and services tax, and the turbulent political scene in Malaysia inevitably hit market confidence.

Aggressive marketing of huge developments by Chinese developers has also stoked fears of a glut.

Most investors have adopted a wait-and-see approach, amid the general economic slowdown and instability of the ringgit, said Mr Wee Soon Chit, executive director of Malaysian property consultancy Landserve.

Leading Malaysian developer UEM Sunrise has not been spared. For the first nine months of last year, it posted total property development sales of RM1.18 billion (S$398 million). Before the cooling measures were unveiled in October 2013, sales was recorded at RM2.1 billion for the same period.

UEM Sunrise managing director and chief executive Anwar Syahrin Abdul Ajib told The Straits Times: "Many developers have opted to scale down or defer new launches. We also took the same approach, especially in 2014, when we concentrated mainly on existing projects (East Ledang, Almas, Nusa Idaman)."

Prospects of oversupply amid news of planned mega projects like the 1,386ha Forest City also dampened sentiment last year.

Mr Boyd noted that the construction of 29,230 units has yet to start. According to Napic, the total incoming supply of condos and serviced apartments was 69,732 units, as at the third quarter of last year.

Mr Wee attributed the delay in construction to poor buyer response: "During the present bad time, developers normally open their units for registration of interest, with a minimal booking fee. No sale and purchase agreements signed. Hence, developers are not obliged to start construction yet."

UEM Sunrise, the master developer of Nusajaya - one of the five flagship zones of Iskandar - said it will launch only products that fit market needs. For now, its focus will be on landed property and "affordable" highrise developments.

Mr Anwar expects the secondary market to remain flattish in the near term, but tips strong interest for resale landed homes priced up to RM500,000 and located within 20km of Johor's central business district.

Having hit the 10-year mark since its development plan was first unveiled, Iskandar still lacks proper industrialisation, where more business activity would help to generate demand for property. Currently, people are just buying houses there to use as second homes, while the current market condition is made worse by recent reports of massive congestions at the Causeway.

Still, property consultants and developers remain confident about the region. Mr Boyd said: "There will always be a mismatch between supply and demand. When a massive area like Iskandar is masterplanned, it follows that large areas will be designated for residential development and then taken up by developers.

"We are very encouraged by the massive infrastructure improvements in Iskandar, as well as the investment that has gone into job-creating industries. This, and the logic of the location, guarantees substantial future demand for housing.

"Sure, some developers jumped the gun, but it is only a matter of time before the market takes off again, and, at some time in the future, house prices in Iskandar could easily become the highest in the country."

The Johor Baru-Singapore Rapid Transit System Link could be the single biggest game changer on the horizon, Mr Boyd added.

About 26 per cent of property buyers in Nusajaya were foreigners, as at Sept 30 last year - 73 per cent of them Singaporeans, said Mr Anwar.

Country Garden Holdings said 25 per cent of its 6,000 units at Danga Bay were sold to Singaporeans.

The Chinese developer remains undaunted by the slowdown.

Its spokesman told The Straits Times: "We do not wait for the customers. Our philosophy is that we will create the market and the customers will arrive."

 

[Frodo]

Iskandar housing market struggles amid weak interest

The idea that property development in Iskandar would satisfy spillover demand from Singapore was tested to its limit last year.

Despite the weakened Malaysian ringgit, which provided a lower entry cost for investors, there was not a notable increase in sales to foreigners, say developers and analysts. Upfront price discounts of up to 20 per cent by some developers also failed to move units. Some property firms have had to re-strategise product offerings, while others deferred new launches.

Iskandar's housing market continues to struggle, as seen by falling numbers of transactions and project launches last year.

Only about a dozen highrise residential projects were launched last year, compared with 24 in 2014 and 49 in 2013 - making 34,364 units in total - noted Savills.

Sales of condominiums and apartments for the first three quarters of last year fell 23 per cent year on year to 1,368 units, according to most recent figures from the National Property Information Centre (Napic).

Savills Malaysia executive chairman Christopher Boyd told The Straits Times that the fewer launches last year could be due to developers exercising restraint and self-regulation. Some developers could also be facing difficulty in securing financing.

The slowdown was first felt in mid-2014 after reports surfaced in the media on oversupply concerns and rising property prices. The implementation of cooling measures, the goods and services tax, and the turbulent political scene in Malaysia inevitably hit market confidence.

Aggressive marketing of huge developments by Chinese developers has also stoked fears of a glut.

Most investors have adopted a wait-and-see approach, amid the general economic slowdown and instability of the ringgit, said Mr Wee Soon Chit, executive director of Malaysian property consultancy Landserve.

Leading Malaysian developer UEM Sunrise has not been spared. For the first nine months of last year, it posted total property development sales of RM1.18 billion (S$398 million). Before the cooling measures were unveiled in October 2013, sales was recorded at RM2.1 billion for the same period.

UEM Sunrise managing director and chief executive Anwar Syahrin Abdul Ajib told The Straits Times: "Many developers have opted to scale down or defer new launches. We also took the same approach, especially in 2014, when we concentrated mainly on existing projects (East Ledang, Almas, Nusa Idaman)."

Prospects of oversupply amid news of planned mega projects like the 1,386ha Forest City also dampened sentiment last year.

Mr Boyd noted that the construction of 29,230 units has yet to start. According to Napic, the total incoming supply of condos and serviced apartments was 69,732 units, as at the third quarter of last year.

Mr Wee attributed the delay in construction to poor buyer response: "During the present bad time, developers normally open their units for registration of interest, with a minimal booking fee. No sale and purchase agreements signed. Hence, developers are not obliged to start construction yet."

UEM Sunrise, the master developer of Nusajaya - one of the five flagship zones of Iskandar - said it will launch only products that fit market needs. For now, its focus will be on landed property and "affordable" highrise developments.

Mr Anwar expects the secondary market to remain flattish in the near term, but tips strong interest for resale landed homes priced up to RM500,000 and located within 20km of Johor's central business district.

Having hit the 10-year mark since its development plan was first unveiled, Iskandar still lacks proper industrialisation, where more business activity would help to generate demand for property. Currently, people are just buying houses there to use as second homes, while the current market condition is made worse by recent reports of massive congestions at the Causeway.

Still, property consultants and developers remain confident about the region. Mr Boyd said: "There will always be a mismatch between supply and demand. When a massive area like Iskandar is masterplanned, it follows that large areas will be designated for residential development and then taken up by developers.

"We are very encouraged by the massive infrastructure improvements in Iskandar, as well as the investment that has gone into job-creating industries. This, and the logic of the location, guarantees substantial future demand for housing.

"Sure, some developers jumped the gun, but it is only a matter of time before the market takes off again, and, at some time in the future, house prices in Iskandar could easily become the highest in the country."

The Johor Baru-Singapore Rapid Transit System Link could be the single biggest game changer on the horizon, Mr Boyd added.

About 26 per cent of property buyers in Nusajaya were foreigners, as at Sept 30 last year - 73 per cent of them Singaporeans, said Mr Anwar.

Country Garden Holdings said 25 per cent of its 6,000 units at Danga Bay were sold to Singaporeans.

The Chinese developer remains undaunted by the slowdown.

Its spokesman told The Straits Times: "We do not wait for the customers. Our philosophy is that we will create the market and the customers will arrive."

Gungho Chinese spotted!

 

[enjoylife77]

Iskandar's challenges, 10 years on
Projects taking longer gestation period amid labour crunch, but there are bright spots

As Iskandar enters its tenth year as a development region, some projects that were seen as catalysts for growth in the region appear to be taking a longer gestation period than expected, with many developers taking a wait and see approach.

Companies hoping to take advantage of the region as a lower-cost location have faced problems in getting the manpower they need.

On the other hand, bright spots have come through in the areas of education and healthcare.

According to the Iskandar Regional Development Authority (Irda), "Iskandar Malaysia is well on track". Irda has achieved 48 per cent of its target of attracting RM383 billion (S$128 billion) of committed investments from 2006 to 2025, with 10 years still to go, an Irda spokesman told The Straits Times. About 50 per cent of the RM187.96 billion in committed investments received so far has materialised, in terms of projects already built, for example.

SECTORS TO WATCH, CATALYTIC PROJECTS

Irda's Comprehensive Development Plan for 2014 to 2025 identifies nine economic sectors that will drive growth in the region.

The core sectors are electrical and electronics, petrochemical, oil and gas, food and agro-processing, logistics and tourism.

Its emerging sectors, which Irda feels have great potential to drive growth, are healthcare, education, creative and financial, investment, real estate and business services.

A total of 605,381 jobs have been created in Iskandar Malaysia from 2007 to date in these nine sectors, along with other sectors, including property and construction.

Irda is targeting the creation of 817,500 jobs by 2025. The region is projected to have a population of around three million by then.

The manufacturing sector has always been the region's main growth driver and accounts for about RM52.10 billion of committed investments to date, translating into firm demand for industrial space.

Take the 210ha Nusajaya Tech Park, where joint developers Ascendas and UEM Sunrise have almost fully sold its first batch of 21 ready-built facilities. A second batch will be completed by the end of this year. Its customers are from precision engineering, marine, security systems, logistics and distribution, data centre and telecommunications. About 77 per cent are Singaporean or international companies.

But firms note that there are problems with securing manpower; the unemployment rate is just 3 to 4 per cent. "Skilled workers would prefer to work in Singapore, which is just a bridge away. We have heard it is not easy to secure sufficient foreign labour given quotas in Iskandar," said Mr Kurt Wee, president of the Association of Small and Medium Enterprises. There is not yet a large enough domestic population in and around the region to help alleviate the labour shortage.

The savings for a company choosing to manufacture in Iskandar over Singapore is about 20 to 30 per cent, compared with places like Klang Valley and Kuala Lumpur, where savings can be up to 50 to 60 per cent, he estimated.

Moderating prices of industrial land in Singapore over the past one to two years also means Iskandar has become a less attractive option for companies, Mr Wee added.

Some small and medium-sized enterprises (SMEs) from Singapore have factories in Iskandar but are not even using them due to high labour costs.

"In the long term, though, we are still optimistic about the adoption of Iskandar as a location for operations... There is room to make Iskandar more attractive in terms of building a vibrant industrial and commercial base, relooking customs procedures and tax incentives," added Mr Wee.

Things are going slowly on the development front.

Construction has not started for the 28.7ha township in Danga Bay, a joint project by CapitaLand, Temasek Holdings and Iskandar Waterfront Holdings announced in 2013. Building has also yet to start on the 9.23ha Vantage Bay project by Rowsley, a firm controlled by Singapore billionaire Peter Lim, which was repositioned last year from an integrated residential, office and retail project to a healthcare hub.

Mr Lim has another large project, motorsports hub FASTrack Iskandar. A spokesman said the design, technical and tender details are being reviewed with a view to commencing construction this year. It will take up to three years to build the project on the 121ha site, the spokesman said.

Some developers are believed to be changing tack.

Malaysian developer Tropicana, for example, is said to be considering selling some of its land bank, including sites at Tropicana Business Park, development land in Gelang Patah and a commercial parcel opposite Danga City Mall.

The company is focusing its development efforts on Klang Valley instead, market sources say.

A Tropicana spokesman said it has no definite plans to sell land. Its Bora condominiums and Oasis 2 shop offices are under construction, and it is planning to launch landed homes in Tropicana Danga Cove, she added.

Progress on the energy front is easing up as well.

Developments in Iskandar and southern Johor, which are part of a bid to make the region one of Asia's top oil and gas hubs, have slowed amid weak oil prices.

The completion of the Pengerang Integrated Petroleum Complex (PIPC) is likely to be delayed due to difficulty in getting new investors to sign up, according to the federal government agency Johor Petroleum Development Corp late last month. Phase 1 of the project is on track but future phases may be delayed, according to news reports.

Malaysia's state-owned oil and gas company Petronas said last year it is delaying until mid-2019 the start of its US$16 billion (S$22.5 billion) refinery and petrochemical integrated development (Rapid), which is to be in Phase 1 of PIPC.

A decline in oil prices forced Petronas to review and re-tender some of its engineering, procurement and construction contracts.

However, it is clear that developments in Pengerang have been a boost to the area. "Thousands of people from the country and region have moved there... (the nearby) Sungai Rengit town is booming and housing prices have shot up," said Mr V. Sivadas, executive director PA Property Consultants.

In the education sector, various international schools have set up shop in EduCity, including Marlborough College Malaysia, which has 823 students. Tertiary institutions include the Netherlands Maritime Institute of Technology with 1,387 students, and Newcastle University of Medicine Malaysia with 598 students.

"Apart from Malaysians, there are students from Singapore, Sri Lanka, India, Seychelles, Mauritius, United Arab Emirates, France, the Philippines, Bangladesh, Egypt, Indonesia and Austria at EduCity," said a spokesman for Iskandar Investment.

This year will see the opening of the Management Development Institute of Singapore (MDIS) campus in EduCity, along with the first phase of Raffles American School.

Healthcare has also proven to be Iskandar's strong suit.

Gleneagles Medini opened last year, taking the number of beds in the area to 1,500 in key private hospitals. These hospitals, including Regency Specialist Hospital and those under the KPJ Group, are said to be packed. Upcoming hospitals, including Thomson Medical Centre and more by KPJ, will add about 1,000 more beds.

So with such a mixed bag, what needs to take place for Iskandar to succeed? While much land has been allocated for high-end housing and commercial uses, there is a shortage of homes for middle and lower income groups. More infrastructure investments to the north, north-east and north-west of Johor are needed to solve the housing crunch.

Experts also point to the need for a far smoother flow of people and goods across both countries.

Bilateral discussions on the Johor Baru-Singapore Rapid Transit System are ongoing, a Ministry of Transport spokesman told The Straits Times.

"Following Malaysia's confirmation of their terminus location at Bukit Chagar, both countries are now discussing the type and alignment of the crossing scheme. The next step will be to commence Phase 2 of the Joint Engineering Study, which is expected to take about two years," he said.

Both governments expect to finalise the commercial model and procurement approach for the Kuala Lumpur-Singapore High Speed Rail this year.

"Until the Causeway and Second Link congestions are solved, this region will be held back. It will not be able to fully realise the potential of being complementary to Singapore," said Mr Sivadas. "Eventually, we need to go back to the core issue. If you are building a city, it must have connectivity."


 A view of Nusajaya, one of Iskandar’s five flagship zones

http://www.straitstimes.com/sites/default/files/st_20160210_rwiskandar10_2053441-page-001.jpg

 

[Tekkun]

PETALING JAYA (Feb 12): Johor’s industrial property market continues to be the top destination for investments despite the sluggish property market due to its proximity with Singapore.

The southern state’s industrial developments drew RM27 billion in the first half of 2015 (1H2015) -- the biggest portion of investments into the manufacturing sector -- compared with RM21 billion for the whole of 2014, said CBD Properties (Johor) Sdn Bhd head of agency Lily Lo.

This is reflected in rising transactions of industrial properties, she added.

“The most attractive segment in Iskandar Malaysia’s property market today is industrial. In the first quarter of 2015, the number of industrial transactions in the state jumped 51.8% year-on-year and 16.1% quarter-on-quarter,” she said.

KGV International Sdn Bhd (Johor branch) director Samuel Tan concurred, pointed to figures from the National Property Information Centre that showed only the industrial subsector grew in Johor -- by 3% in 1H2015.

This contrasts with the 38.4% and 31.5% declines in the residential and commercial subsectors over the same period, he said.

Johor’s industrial developments also saw progress, recording good occupancy rates.

“The occupancy rate at most of the existing and established industrial parks is more than 70% while in recently completed and ongoing projects, it is about 40% to 50%,” said C H Williams Talhar & Wong (WTW) Sdn Bhd (Johor branch) director Tan Ka Leong.

Moreover, Johor’s proximity to Singapore has raised the state’s profile, as Johor is a convenient location for the island republic’s enterprises expanding their businesses.

The industrial developments in the state have attracted mostly small and medium enterprises (SMEs), cottage industries and light to medium manufacturing businesses, of which 60% are local and 40% foreign.

“Many SMEs from Singapore have relocated to Johor due to its proximity,” said Knight Frank Malaysia Sdn Bhd (Johor Branch) executive director Ricky Lee Kong Wah.