11,000 overhang properties in Johor, better times ahead?

11,000 overhang properties in Johor, better times ahead?

With the Johor – Singapore Special Economic Zone (SEZ) receiving a lot of attention lately, I think the property market attractiveness in Johor should increase. This is especially for Singapore based companies intending to set up their operations within the zone. The people they hire would work in Johor but there may be a lot of travel for the staffs in Singapore into Johor if their major operations plant is in Johor.

We just need to be aware that there are still around 11,000 overhand serviced apartments of which majority are priced above RM600,000 which explains why it’s not so easy to sell these units. As for which property to purchase, the focus would be on all properties on offer and not just these serviced apartments. The purpose of the purchase must fit to the type of property we intend to buy.

Article in thestar.com.my. State housing and local government committee chairman Datuk Mohd Jafni Md Shukor shared that serviced apartments priced at RM600,000 and above make up the majority of Johor’s overhang.

“We have no problem with other types of houses in Johor. The only properties that are rather challenging to sell are serviced apartments above half a million ringgit.

“Currently, there are about 11,000 unsold serviced apartment units in Johor. This is a drop from about 13,000 earlier last year,” he said.

Mohd Jafni said the move to ease the conditions of the Malaysia My Second Home (MM2H) programme last year has also helped to reduce the overhang.

“I believe the remaining unsold properties will be sold in the next two to three years, allowing us to solve this issue once and for all,” he said. Do read the full article here: Article in thestar.com.my.

Yes, JB is definitely going to be a major property market

This is the opinion of someone who does not own a property in Johor yet. He is also not a property negotiator with Johor properties to sell. He is also not under the payroll of any property developers with developments in JB too. Yes, this he is me. 🙂 There are many other reasons beyond just the SEZ yeah. We also have the start of Rapid Transit System at the start of 2017. (which I believe could start slightly earlier…) However, we need to solve the connectivity once the people come in to JB via th RTS. This would be one major issue which the Johor government would need to solve soon.

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