Property News

[FHBH12]

Eco World stands to gain from SP Setia's loss
Counter up 3% on expectation Liew Kee Sin will join firm after leaving SP Setia
BY PAULINE NGIN KUALA LUMPUR
PUBLISHED APRIL 24, 2014

ECO World Development Group Bhd climbed nearly 3 per cent yesterday on expectation that developer Liew Kee Sin would soon be bringing his expertise to the company after he disposed of all his shares in SP Setia.

Credited with growing SP Setia into the largest property developer in Malaysia by sales, Mr Liew sold 67.79 million shares representing 2.76 per cent of the company in an off-market trade, according to a report in Starbiz, the business section of Malaysian daily The Star.

The shares, sold at RM3.95 apiece, are believed to have been bought by Permodalan Nasional Bhd (PNB), under a put option agreement with him, to acquire his stake in three tranches.

PNB had triggered a mandatory general offer (MGO) in 2011 when it upped its stake in the company above 33 per cent, catching Mr Liew, its president and chief executive, by surprise. To induce him to stay longer, the country's largest asset manager had agreed in January 2012 to buy his 8-plus per cent stake in SP Setia at the MGO price of RM3.95, albeit in three tranches over three years.

In any event, Mr Liew will officially leave SP Setia at the end of the month.

Reflecting investor concerns at his departure, the counter has been sliding and currently stands at RM2.93, some 26 per cent lower than PNB's general offer.

Eco World, on the other hand, is enjoying a dream run. From a penny stock of about 37 sen, it has rocketed over the past year to RM5.35 now.

Part of the gains occurred when Mr Liew's son Tian Xiong and his associates engineered a reverse takeover of little-known Focal Aims Holdings Bhd at RM1.40 a share. Focal was later renamed Eco World.

That a number of senior SP Setia executives now helm Eco World suggests that Mr Liew will emerge there, though he has declined to confirm the speculation.

The run-up in its share price has pushed Eco World's price earnings to a whopping 71 times.

"It's the Liew-hype," said a retail investor of Mr Liew, who has also gained recognition in the London market after he led a Malaysian consortium to win the Battersea Project. The investor also pointed to the softer property market.

But investors appear to like Eco World's prospects. Analysts say it is one of the biggest landbank owners in Seberang Prai on the Penang mainland where the recently opened second Penang bridge and state development initiatives have led to a rush of industrial, commercial and residential interest.

In Johor, the developer also has vast tracts of land. Its maiden project, Eco Botanic, in Nusajaya, Iskandar got an overwhelming response when first launched in September last year, partly because of buyers' familiarity with the SP Setia brand. The same was true for its EcoSky mixed integrated development in the Klang Valley.

Whether Eco World can sustain investor interest remains to be seen, but for now SP Setia's loss appears to be its gain.

http://www.businesstimes.com.sg/premium/malaysia/eco-world-stands-gain-sp-setias-loss-20140424

 

[malpaso]

ecosky in KL == lousy location. taman wahyu condo at sky high prices.

 

[FHBH12]

Overview of the Property
Markets in 2014
http://english.sccci.org.sg/Downloa...12th SCCCI-BT Biz Outlook Forum-Getty Goh.pdf

 

[malpaso]

Overview of the Property
Markets in 2014
http://english.sccci.org.sg/Downloa...12th SCCCI-BT Biz Outlook Forum-Getty Goh.pdf

doesn't exactly paint a rosy picture for residential! your opinions?

 

[FHBH12]

There is a big supply of residential units coming from next year onward, mainly due to e condos.

New landed properties in $5xxk-6xxk range r in short supply n r usually sold out within months, so I think resales here will climb.

One slide hinted tt developers will sell more >$1 mil properties, and I think $7xxk-$1mil new landed properties will slowly reduce in supply in good areas from tgis year onward.

Developers will just focus on building mid range condos $300k-$600k since most locals find this range more affordable and e sizes r good enough for raising a family. If they were to build landed properties, they will use up more land bank n e affordability is lower, so they will have problems with profit margin.

 

[Stevewish]

There is a big supply of residential units coming from next year onward, mainly due to e condos.

New landed properties in $5xxk-6xxk range r in short supply n r usually sold out within months, so I think resales here will climb.

One slide hinted tt developers will sell more >$1 mil properties, and I think $7xxk-$1mil new landed properties will slowly reduce in supply in good areas from tgis year onward.

Developers will just focus on building mid range condos $300k-$600k since most locals find this range more affordable and e sizes r good enough for raising a family. If they were to build landed properties, they will use up more land bank n e affordability is lower, so they will have problems with profit margin.

Developers will like to focus on building mid range condo, but the land cost esp on commercial land, materials, labour, gst do not justify for it. If they buy land at some ulu places but again make it hard to sell. Mid range condo also fetch lower profit. Developers esp big ones will still focus on luxurious condo.

 

[FHBH12]

No surprises in Malaysia property report
The Star/Asia News Network
Saturday, Apr 26, 2014

Property experts say the findings of the Property Market Report 2013, released last week by the National Property Information Centre, came as no surprise, with the various cooling measures having their intended effect of curbing speculation and excessive price growth.

Less certain is whether demand will recover in earnest during the second half of this year, in what some expect to be a "pre-GST boom".

CEO-Agency of property consultancy PPC International Sdn Bhd Siva Shanker tells StarBizWeek that he sees buyers making a beeline to snap up property in the two quarters prior to April 2015, when the GST takes effect at an initial rate of 6%.

Shanker, who is also president of the Malaysian Institute of Estate Agents, does not believe Malaysia will follow the example of Australia, where prices soared and then tumbled pre- and post-GST back in 2000.

"In Malaysia, what goes up does not come down. I think our property prices will rise ahead of GST and find their level there," he says.

According to the Property Market Report 2013, volumes shrank 10.9% to 381,130 transactions but their value rose a marginal 6.7% to RM152.37bil (S$58.6bil) from RM142.84bil in 2012, indicating that prices gained strength despite a raft of measures designed to rein in speculation, including a ban on interest-bearing schemes and a higher real property gains tax.

"Most people say 2014 and 2015 will be tough years for the property market. A slowdown usually lasts for two years.

"But looking at the report, my view is that 2013 and 2014 are the slowdown years. I expect the market to normalise in 2015 and make a full recovery in 2016 and 2017," Shanker remarks.

"This year's volumes will probably be flat, but prices are not likely to go down."

As in the past, the report showed that the residential market dominated close to two-thirds of all transactions.

Approvals for housing loans, however, fell sharply compared with an expansion the year before. Total loans disbursed for the purchase of residential properties rose to RM74.4bil from RM64.1bil.

The report says construction activity stayed solid, backed by high-rise and high-end properties in the Klang Valley, Penang and Johor. The shop and industrial segments also saw higher starts and building plan approvals in 2013.

The occupancy rate for retail and office space remained firm, buoyed by a moderate increase in new supply, as well as fewer starts and new planned supply.

But the market showed evidence of softening across the board. All sectors posted reductions in transaction activity, led by commercial and industrial properties.

Most states fared worse save for Johor and Perlis, which recorded high single-digit improvements.

Five states experienced double-digit contraction in activity, with Putrajaya, KL and Kelantan topping the list.

According to the report, residential properties saw improved sales of new launches and more housing starts and completions, which helped pare down the number of "overhang" properties.

The all house price index jumped to 192.9 points against 172.8 points the year before. Average prices rose 10% to RM266,304 from RM241,591.

In terms of volume, most states posted a downturn except for Johor, which expanded 16.6%.

In value terms, all major states saw growth except for Kuala Lumpur, which declined by 9.7%. Johor was most improved with 63.2% growth, while Selangor recorded 2.8% growth and Pulau Pinang, zero growth.

Houses priced between RM250,000 and RM500,000 were the most popular, capturing 27.3% of all transactions, while demand for those in the low-cost RM100,000-RM200,000 category weakened.

Terraced houses made up the largest share of residential transactions, with Selangor, Johor and Perak contributing to more than half of the market share, followed by condominium and apartment units, most of them being transactions in Selangor and Kuala Lumpur.

The number of new launches fell last year after three straight years of growth to 48,290 units from 57,162 units in 2012, even as their take-up receded to 45.1% against 47.7%.

Kuala Lumpur, Selangor and Perak topped the list of new launches, commanding 57.4% of the national total.

From a price standpoint, the Kuala Lumpur market continued to be resilient. The report reveals that single-storey terraced homes at Bukit Bandaraya and Lucky Garden, both in Bangsar, saw 25.3% and 11.4% growth, respectively, pushing the value of a unit to upwards of RM1mil.

Spurred by the MRT factor, homes in Taman Bukit Anggerik and Salak South Garden posted 17.2% and 17.8% growth, while double-storey terraced units in Kepong's Desa Park City ranged between RM1.31mil and RM2.48mil.

The report highlights that select condominiums in Kuala Lumpur, such as Bangsar Puteri, OBD Garden Tower and Casa Vista experienced growth of over 20%.

A downtrend was seen in Mont'Kiara Damai and Tijani 2, however, as prices tumbled by 5.7% and 12.4%, respectively.

Home prices also stayed firm in Selangor, but Johor's landed residential segment jumped by double-digits in certain areas, particularly Johor Baru.

Condominium pricing in Johor Baru remained competitive, with the highest transacted price being RM500,000 per unit in Taman Pelangi. On average, units were priced between RM150,000 and RM350,000.

Up north in Pulau Pinang, residential properties were stable as the limited number of terraced houses on the island boosted demand for the Timur Laut and Barat Daya districts.

While Iskandar Malaysia was clearly a boon for Johor, CH Williams, Talhar & Wong managing director Foo Gee Jen says he is concerned if that performance is sustainable.

The veteran property consultant also expects a pre-GST rush for property.

"Buyers are concerned that prices will go up. If you are looking at a piece of property, now is the time to lock in your purchase," he quips.

In Foo's estimation, residential property could experience an 8%-10% jump in price after GST, and the landed segment a stronger 10%-15%.

"There is no oversupply in landed homes, but I can't say the same for condominiums, especially the Soho (small office home office) or Sovo (small office versatile office) types."

Kim Realty CEO Vincent Ng tells StarBizWeek that demand in the primary market remains firm and will likely continue apace unless interest rates go up.

"The primary market may gain traction in the second half as developers have been holding back on launches. Those with unsold stock will want to unload them before GST," he points out.

"I don't think prices will be cut drastically, but developers will make it attractive for buyers."

Nonetheless, Ng acknowledges that the banks have tightened the screws on mortgages, leading to a mass of loan rejections.

"From what I understand, 30%-50% of the people who have put in deposits have had their loan applications denied for various reasons," says Ng.

"The damage has already been done. More cooling measures will kill the market," says another property agent.

- See more at: http://business.asiaone.com/news/no-surprises-malaysia-property-report#sthash.W6KJMIpa.dpuf

 

[FHBH12]

Above report correlates to what I thought

 

[malpaso]

Above report correlates to what I thought

me too also... ahem. bangsar.
""The report reveals that single-storey terraced homes at Bukit Bandaraya and Lucky Garden, both in Bangsar, saw 25.3% and 11.4% growth, respectively, pushing the value of a unit to upwards of RM1mil.""
"
The report highlights that select condominiums in Kuala Lumpur, such as Bangsar Puteri , OBD Garden Tower and Casa Vista experienced growth of over 20%.

A downtrend was seen in Mont'Kiara Damai and Tijani 2, however, as prices tumbled by 5.7% and 12.4%, respectively."

these property in bangsar are very old properties. the houses are non g&g single storey house launch in the 70s at 17K only. amazing.

 

[FHBH12]

Some detailed statistics: http://napic.jpph.gov.my/portal/content/Publication_PDF/HPI/IHRM_Q3-Q4_2013.pdf

On page 4, we can see a slowdown in Q4 2013, which was experienced on the ground last year. I think Q1 2014 will also be quiet, but Q2 2014 onward is likely to warm up again.

On page 31, the best landed property belongs to semi-Ds since year 2000 in terms of price gain and resilience. Johor has about 10 years of lost growth from year 2000-2010, when the overall index dipped below 100. In year 2013, the index was only about 40% above year 2000, or average about 4% increase per year. In contrast, Singapore's private property index (http://www.singaporepropertycycle.com.sg/market-trends/singapore-property-price-index/) increased by more than 100% over the same period.

The weakness in the report is its reporting in absolute quantum, instead of also factoring land-size or built-up psf. While prices could hold or drop, the land and built-up area can be decreasing. This affects the index and analysis.

 

[FHBH12]

PNB to merge E&O, SP Setia and Sime Darby?
Apr 29, 2014 - PropertyGuru.com.my

Permodalan Nasional Bhd (PNB), Malaysia's largest fund manager, plans to unite four of its portfolio companies to form the ASEAN region’s second largest property player by assets.

According to a source, the slowdown in the local housing market has led to falling property stocks, giving PNB a chance to take control of its units involved in real estate.

With at least RM41 billion in assets, the resulting entity is expected to become the biggest property developer in Southeast Asia after Singapore's CapitaLand.

It could also end up with 11,315 hectares of landbank spread across Malaysia and in London's Battersea Power Station.

Under the proposed deal, PNB would fork out RM4.25 billion to wrest control of SP Setia, Sime Darby as well as Eastern & Oriental Bhd (E&O). And then combine it with I&P Group, said the source.

The merged entity could take the form of a property trust, listed firm or could even stay private. However, the plan is still subject to changes as it is still in the early stages, he added.

Requests for comments at PNB, E&O, Sime Darby and I&P Group went unanswered, while SP Setia refused to say anything.

PNB began restructuring its property portfolio in 2009, when it merged three developers into I&P Group after buying Petaling Tin Bhd, Pelangi Bhd, as well as Island & Peninsular Bhd for RM1.43 billion. It currently oversees around RM238 billion worth of assets.

Farah Wahida, Editor of PropertyGuru, wrote this story. To contact her about this or other stories email [email protected]

http://www.propertyguru.com.my/property-news/2014/4/12425/pnb-to-merge-e-o-sp-setia-and-sime-darby-

 

[cow138]

Wow. Govt is buying up private players.
Very aggressive move. Likely to lead to more fragmentation in the market.

 

[FHBH12]

Too expensive, buying interest drying up: Lacklustre property mart outlook - survey
HEAVY BURDEN - Buying interest falls as a result of increase in house prices, says PropertyGuru
Wednesday, 07 May 2014 05:39

REAL estate portal PropertyGuru International (Malaysia) Sdn Bhd says the outlook for the property market does not look too bright from the buyers’ perspective.

This is the findings of its survey conducted at the end of last year involving more than 1,000 respondents.

The study shows a decrease in purchase intentions, with 68 per cent of potential buyers not satisfied with the increase in prices.

“As a result, buying interest dropped and interest in owning condominiums/apartments declined by nine per cent, the desire to own terraced houses plummeted 23 per cent and the demand for ‘other landed/commercial properties’ slipped 16 per cent,” PropertyGuru country manager Gerard Kho said yesterday.

Kho pointed out that property prices have increased by 30 per cent in the Klang Valley.

The average household debt is also a big issue that needs to be dealt with, he said, adding that the Malaysian household debt to gross domestic product ratio as at end-2013 was 86.8 per cent.

He also noted that in order to control the country’s rising household debt, simply relying Bank Negara Malaysia’s abolishment of the interest capitalisation scheme and Developers Interest Bearing Scheme, andbanks being required to fix their loan-to-value ratios based on a property’s net selling price rather than gross selling price, might not be enough.

He said one of the major problems lies in the rather slow supply of new houses because of the long approval process, resulting in first-time house buyers being burdened by large downpayments.

-NST

Full article: http://www.malaysia-chronicle.com/i...ty-mart-outlook-survey&Itemid=3#ixzz30yc3tPUx
Follow us: @MsiaChronicle on Twitter

 

[FHBH12]

Developers plan further price hikes
By Laura Lee
Friday, 09 May 2014, 12:00 AM

Potential home buyers hoping that the cooling measures introduced by the government which have put the brakes on the residential property sector, will result in lower prices of new property will be sorely disappointed.

Far from lowering prices, a Malaysian Institute of Economic Research (MIER) survey showed that 53% of the builders surveyed revealed plans to hike property prices in the second quarter (Q2) while the rest say they will not raise or slash their prices anytime soon.

With higher cost of construction translating into higher home prices, MIER says the survey shows the respondents who raised prices of their residential properties in Q1FY14 have risen sharply to 47% from 23% in the previous quarter. For the third consecutive quarter, no respondents lowered prices of their residential properties in Q1.

Despite a slowdown in sales of residential properties, construction of homes is likely to gather momentum with 47% of the respondents indicating they plan to build more houses soon.

- See more at: http://www.focusmalaysia.my/Assets/Developers-plan-further-price-hikes#sthash.QGSMBkQ3.dpuf

 

[FHBH12]

Iskandar boom benefits little-known developers
By Lim Wey Wen
Friday, 23 May 2014, 12:01 AM

With a slew of property cooling measures by federal and state governments in full swing, there is no doubt the property market in Iskandar Malaysia is cooling.

There are perceptibly fewer property launches in the economic region in Johor this year and developers concur that booking rates, especially in high-rise residential properties, have generally declined since January.

These signs have raised concerns 300km away in Kuala Lumpur about the sustainability of Iskandar’s property market; but a trip south reveals some low-profile and smaller listed developers bucking this trend with their natural strengths – affordable landed properties and commercial or industrial developments.

Recent property launches by lower-profile developers in Iskandar such as Crescendo Corp Bhd, Scientex Bhd and Tebrau Teguh Bhd have seen encouraging response even after cooling measures like the banning of developer interest-bearing schemes (DIBS) and an upward revision of the real property gains tax (RPGT) were announced in October's Budget 2014.

Two weeks ago, Tebrau Teguh saw the first block of its waterfront development in Bayu Puteri with 264 units sold out within hours of its launch.

Earlier in the year, the first two phases of Scientex’s double-storey houses in Taman Scientex Senai, about 30km northeast of Johor Bahru’s city centre, were fully sold within weeks. The units were priced at between RM298,800 and RM412,100.

- See more at: http://www.focusmalaysia.my/Mainstr...-little-known-developers#sthash.TrUfyI5u.dpuf

 

[malpaso]

Malaysia’s star waning for Singapore property hunters - but country still remains top oversea investment destination.


http://theantdaily.com/Main/Malaysia-s-star-waning-for-Singapore-property-hunters

 

[FHBH12]

Errant developers in Malaysia face jail and $195,000 fine
G. Surach
The Star/Asia News Network
Monday, May 26, 2014

PETALING JAYA - Errant housing developers can now be hit with hefty fines and jail terms if they abandon their projects.

Under the amendments to the National Housing Development (Control and Licensing) Act 1966, which would take effect from June, developers of abandoned projects may be fined RM500,000 (S$195,000) and jailed for up to three years.

The changes also enable house buyers to terminate sale and purchase agreements with developers if there was no progress for six consecutive months or more and seek a refund of deposits within 30 days.

House Buyers Association secretary-general Chang Kim Loong said the changes offered house buyers more legal safeguards against errant housing developers.

He said it was a reflection of the Government's concern for house buyers' rights and a move to ensure that developers kept to their obligation of completing projects.

He commended former Urban Wellbeing, Housing and Local Government Minister Datuk Seri Chor Chee Heung for helping to pave the way for the amendments in 2010.

"The pertinent changes include making errant developers criminally liable by meting out jail sentences upon conviction.

"The new laws also enforces liquidators, as de-facto developers, to abide by the Act," he said.

However, Chan said changes should also be made to other laws to further streamline the construction industry.

He said among the laws being reviewed where those pertaining to housing developers regulations and sale and purchase agreements under Schedule (G,H,I,J) together with the Strata Management Act, Strata Title Act and Strata Tribunal Act.

"Since all these laws relate to the welfare of house buyers and cross-reference each other, they should be launched simultaneously to avoid potential conflicting legal views," he said.

Chan said the drafting process involving the amendments were nearing completion and that the changes were expected to be announced by the ministry.

On April 3, Deputy Urban Wellbeing, Housing and Local Government Minister Datuk Halimah Mohd Sadique announced to the Dewan Rakyat that the amendments to the Housing Development (Control and Licensing) would come into effect on June 1.

From 2009 to Feb 28 this year, the ministry had classified 206 housing projects as abandoned.

Out of these, 149 had since been revived with 22,868 homes built.

- See more at: http://business.asiaone.com/news/er...and-195000-fine/page/0/1#sthash.TZHi6pg1.dpuf

 

[FHBH12]

Malaysian developers' Q1 profits in downtrend
Property sales still moderating after October's cooling measures
BY PAULINE NG IN KUALA LUMPUR

THE quarter to end-March performance of developers indicates that, sequentially, earnings are on a downward trend, with most posting weaker profits on lower revenues and margins.

However, builders that focus on landed properties and mid-range condominiums fared better than those in the mid to high-end apartments or integrated developments, according to Affin Investment.

Pricing and product mix will be key given the margin squeeze where cost pressures are rising as a result of higher land, building materials, labour and compliance costs. But developers are limited in their ability to pass on the full costs because of stringent competition and bank lending as well as weaker market sentiments.

The quarter to end-March saw property companies recording a mixed bag of results, with the overall performance slightly below expectations.

RHB Investment said almost half of the property firms under its coverage achieved earnings that were below expectations. However, it observed that the first half is typically weaker and a stronger performance can be expected in the second half.

Property sales continued to moderate in the first quarter after cooling measures were introduced in October. Year-on-year sales were, however, higher because of the low base effect of Q1-13 where buyers had held off committing ahead of the 13th General Election in May.

Even so, Q1-14 saw the weakest quarterly sales since Q2-13.

Analysts are projecting a pick-up in property demand in the second half ahead of the implementation in April of a goods and services tax at a rate of 6 per cent. Although residential properties are not subject to the new tax, builders are adamant that prices will not dip since the components that go into a home are not exempt. Moreover, inflation has inched up.

Some developers say a project is not feasible if margins are less than a tenth, given high compliance costs. While margins vary, the sector is said to enjoy a buffer of at least 20 per cent.

While new homes will be pricier come April, the prices of secondary properties are expected to be more stable. Weaker demand could also lead to a slide in prices.

Even so, some developers are reporting solid sales. Take Tropicana Corporation, which recently claimed that a six-week sales campaign to end-May involving its projects in Penang, Klang Valley, Iskandar Malaysia and Kota Kinabalu set a new record for the company as some RM600 million (S$233.4 million) worth of homes were sold.

Land banking activities continue in earnest. Developers such as Mah Sing and Eco World are expanding their landbank in anticipation that demand will rebound because the growing population still needs to be housed.

http://www.businesstimes.com.sg/premium/malaysia/malaysian-developers-q1-profits-downtrend-20140604

 

[FHBH12]

A metropolis beyond borders, cultures, currencies
S'pore, Johor and the Riau Islands form the Sijori growth triangle
PUBLISHED JUNE 05, 2014

[SINGAPORE] Darren Chin gave up a 15-minute train journey to his office in Singapore for a two-hour drive with a stop at passport control.

The reason: By commuting from Malaysia, he can afford his own two-storey home and car.

"It's worth it," said the Malaysian financial adviser, who leaves his house before 6.45am to get to his job at OCBC Bank on time. "I'm saving on rent and I'm paying for my own house."

Mr Chin is part of the expansion of South-east Asia's richest city across its borders as residents and companies seek property, labour and amenities, often at half the cost or less.

The result is a three-nation urban complex with a population bigger than London and an economy that would rank as one of the fastest-growing in the region.

"Without the regional perspective it would be a lot more difficult, if at all possible, for Singapore to maintain the role that it has as a global city," said Milica Topalovic, an associate professor at Future Cities Laboratory in Singapore.

"Most of the pressing questions that Singapore has today - of land, of workforce, of ageing - can be solved easily in a regional perspective."

Combine the dominant forces of the 21st-century economy - globalisation and urbanisation - and the result is a metropolis that crosses borders, cultures and currencies.

South-east Asia's prime example is known as Sijori, an acronym derived from Singapore, the neighbouring Malaysian state of Johor, and Indonesia's Riau Islands.

For an island-state at its limits, access to land and labour in neighbours is crucial.

Economic growth and soaring immigration have strained Singapore's resources, making it one of the most expensive places to live in the world.

Singapore's population density rose to 7,540 per sq km in 2013, closing in on New York's 10,425.

The Ion mall in the Orchard Road shopping district descends four stories into the ground, and the government is exploring building underground storage, transport hubs and shopping areas.

The island, whose US$290 billion economy is bigger than that of Nigeria, the Philippines or Greece, has seen its population surge by almost a third in the past decade to 5.4 million.

Add Johor and the Riau islands, and the number was about 10.1 million in 2010, according to estimates by Aris Ananta, a senior research fellow at the Institute of Southeast Asian Studies in Singapore.

That could rise to 18 million by 2030, he said.

The Sijori triangle's economy will expand 5.7 per cent annually in 2013-2020, compared with an average of 4.2 per cent for Singapore, show forecasts by Toh Mun Heng, an associate professor at the National University of Singapore Business School.

With cheaper land plentiful in southern Malaysia, money is pouring across the border.

Singapore has invested at least RM11 billion (S$4.27 billion) in Iskandar Malaysia, a special economic zone in southern Johor established in 2006 that's three times the size of the city.

Khazanah Nasional and Temasek Holdings, the state-owned investment companies of Malaysia and Singapore. are developing projects including an 85 hectare area that will comprise a wellness centre, apartments, malls and spas valued at about RM3 billion.

"There's a natural economic dynamic that will make a lot of Singaporeans invest in Johor Baru," said Francis Yeoh, managing director of one of Malaysia's biggest builders, YTL Corp. "It's quite a good time to invest in property." - Bloomberg

http://www.businesstimes.com.sg/pre...s-beyond-borders-cultures-currencies-20140605

 

[FHBH12]

I suppose more PRs are shifting to Johor to stay, while working in Singapore. Singapore is over-crowded and expensive. The RTS will result in more Malaysians crossing over to Singapore to work daily. Let's wait for the RTS announcements.