Property prices in Iskandar to surge in next 10 years
Romesh Navaratnarajah • May 9, 2016
View of Johor Bahru.
Iskandar could become an investment haven in Malaysia, especially its real estate sector, experts told the New Straits Times.
It is expected to become one of the world’s most prosperous regions in the next 10 years after it was overshadowed by property booms in Penang, Kuala Lumpur, Hong Kong and China in recent years.
In the next 10 years, sceptical consumers will regret not investing there earlier, said Ishmael Ho, Chief Executive of Ho Chin Soon Research. This is because prices of residential and commercial properties in Iskandar’s Flagship A and B zones are expected to rise significantly over this period.
The Flagship A, B and C zones are situated on the west side of the region.
Moreover, property prices there could surpass those in Greater Kuala Lumpur by two-fold during the second half of Iskandar’s 20-year master plan, noted Ahyat Ishak, author of the best-selling book entitled ‘The Strategic Property Investor’.
He attributed this potential price hike to the upcoming Kuala Lumpur-Singapore High Speed Rail (HSR) and Johor Bahru-Singapore Rapid Transit System (RTS).
Asked about the new property hotspots in Iskandar, he said: “We believe the next growth area is Pasir Gudang, which used to be the eastern-most fringed.”
According to Eco World Development’s CEO and President Chang Khim Wah, Iskandar’s eastern side is strategically located near several ports like Johor Port in Pasir Gudang and the Port of Tanjung Pelepas.
“With continuous enhancements on connectivity and accessibility like the completion of the Eastern Coastal Highway, Senai Desaru Expressway and the ongoing upgrading works on the Pasir Gudang Highway, the east side remains appealing to many businesses,” he said.
Meanwhile, Iskandar Regional Development Authority’s (IRDA) CEO Datuk Ismail Ibrahim revealed that Iskandar received RM202.45 billion in total investments from 2006 to March 2016. Of this, 51 percent or RM103.5 billion has been realised.
Local investors accounted for 60 percent (RM121.44 billion), while overseas investors contributed the remainder of the overall figure (RM81.01 billion).
Mangalesri Chandrasekaran, Editor at PropertyGuru Malaysia, edited this story. To contact her about this or other stories, email firstname.lastname@example.org