China’s ‘One Belt, One Road’ initiatives in Malaysia
By Ryan Khoo / Alpha Marketing, The Edge Property | February 1, 2016 10:00 AM MYT
What does this mean for Iskandar Malaysia?
Iskandar Malaysia, being the earliest beneficiary of Chinese investments, is a step ahead in terms of development progress. By late 2017, we should see the completion of the first Chinese development projects and also the start of construction for the HSR as well as the rapid transit system linking Singapore and Johor Baru. These will bring in the next wave of Chinese investors, which will primarily be in the manufacturing and services sectors. This is on top of the real estate and construction companies that we tend to focus on today.
Property investors in Iskandar Malaysia should be comforted by the fact that it has been a big recipient of the outbound flow of investments from China. This should translate into various economic opportunities, which will unfold over the next decade, and ultimately, bring a favourable outcome for property assets in the region.
Ryan Khoo is co-founder of Singapore-based Alpha Marketing, a real estate investment consultancy that focuses on the Malaysian market, especially Iskandar Malaysia. The views expressed here are his own. He can be contacted at
[email protected].
First of all, I am cautious when I read articles written by people with vested interests in Iskandar. Ryan Khoo is one of them. This guy is a Malaysian who decided to come to Singapore with his wife to open his company to market Malaysian properties, of which Iskandar is one of them. He also has a group of Malaysian investors and advised them to buy condos that he was marketing 1-2 years ago.
So be careful when you see stuffs by Alpha Marketing, which is his company.
I am also wary of articles published by "The Edge". You will only hear the good stuffs.
It's not surprising. They earn their money selling Iskandar properties. Ryan Khoo is no different from any salesman.
If some developer tells me they will pay me very well to market their Iskandar condo project, then I will of course vomit out all those bullshit stuffs:
- RMXXX BILLION has already been invested in Iskandar -- It's TOO BIG to fail!
- There are many CATALYTIC FACTORS like Legoland, Gleneagles, many good UK universities, business offices, etc
- Danga Bay and Forest City will be a mini town on their own with soooooo many Chinese investors going in
- Medini will be the future CBD!!!
- The RTS and HSR will be the GAME CHANGER!!!
LAI AH, LAI AH, buy this condo! Sure HUAT AH!!!! You can rent out your 2-bedder in Medini for RM3k a month to ready tenants! (Craps la...)
How often have we heard all these repeated stuffs?
As some here have said, open your eyes big and make your own judgements. The problem is, many (Singaporeans especially!) who bought their Iskandar properties went in blindly. (They may not exist here. I know many here are smart buyers.)
There's nothing intrinsically bad about Iskandar. It really depends on your financial background and purpose. If I were a Malaysian, I want to enjoy my retirement, and RM1mil is peanuts to me, why not? Buy and treat it as a "playhouse" to enjoy. I don't care about its returns.
But if I am a Singaporean, still far from retirement, working hard, no intention to live there, just want to invest, then I will be extremely cautious.
I'm amazed when I heard some Singaporeans even snapped up like 3 condo units (or maybe more?!!) in Iskandar like buying cakes. If they know what they are doing, fine. But from the way they talk, you know it's the uncle coffee shop type -- "I buy because my gut feeling tells me Iskandar will Huat!" Hello, you are possibly locking up your cash reserves, pay your bank interest (if any), taxes, fees, etc for 15 years at a loss! Can you even find tenants and exit when you want to?
I don't see a strong correlation between the Chinese going into Iskandar and property investments doing well, as Ryan mentioned. Think carefully again. If property investing is so simple, everyone will go in based on this news alone.
