I have no properties in Johor yet. Am I thinking of buying in Iskandar? My next property is most probably in Kepong, a secondary one, for rental. However, for those who kept saying that Iskandar is too overpriced, all the Johoreans cannot afford and that everything seems to be in millions and millions, let me honestly tell you that it is not true. Based on today’s search result, a casual search for 2 storey terrace houses which would cost you a bomb here in Kuala Lumpur or Petaling Jaya is still less than RM400,000 in Johor. I used PropertyGuru but you would easily have similar results even if you used iProperty. It is very true that the newer launches, for primary ones are pushing the limits. It is also true that RM700psf seems pretty common for primary property launches. It is also true that the demand has slowed down due to some uncertainties in the market and most recently, the VEP. However, to simply say that Johor is becoming way too expensive is totally untrue.
My personal opinion about VEP is simple, it will not affect the long term demand as long as everything planned comes to fruition. The new theme parks, all the educational institutions, the links between Iskandar and Singapore and all the new and modern industrial parks. If we always think that Singapore has a better planning, be informed that Singapore intends to have 6 million population from current 5.4 million. That’s an additional 600,000 new people. If you think that’s due to babies, think again. Majority would be new people from everywhere, including Malaysia. These 600,000 new population cannot all be staying within Singapore. If they do and we do a projection of 5 to 1 small HDB flat, another 120,000 small HDB flats are needed within the next 6 years. If I remember correctly, 20,000 new units are built on a yearly basis in Singapore. In other words, catering to this growth would meant every single unit planned must be built. This has yet to include the demand from the current population in Singapore.
Of course, there is a possibility that Singapore’s plans may fail. There is also a possibility that all the investments promised in Iskandar may not come in. The High Speed Rail reaches a negotiation deadlock. There is so any other possibilities that everyone can think of and as they say, whatever can go wrong may go wrong? Sorry, if you think I am telling you to buy Iskandar, I AM NOT. I do not even have a plan yet. However, if you may have a totally different perception and understanding, it’s really time for you to read more, even if you don’t want to read the publications in Malaysia, then read those from outside Malaysia. Investments are all about knowledge first, action later. Some people told me that East Malaysia is worth a look. I tell them, as long as you have read sufficiently and you think the risks are already calculated well, anywhere is worth investing. Otherwise, you may be those who bought, lost money and kept quiet and kept on telling people property is a bad investment.
written on 19 Aug 2014
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