Most of everyone I spoke to about Iskandar has a similar opinion. ‘Iskandar? Sure or not. Bubbles building. Over-supply. The Chinese developers are building like there’s no tomorrow, how to buy now?’ Then I read about a developer whose project I visited before in Shah Alam. Ken Holdings Bhd. It said that their biggest development to date in terms of GDV, the Ken JBCC will be launched next year, 2015. First to be launched would be one block of the serviced suites. The whole Ken JBCC carries a GDV of RM1.2 Billion. The plan is to make the development a green district and thus the aim is for the top rating in the BCA Green Mark scheme. Ken JBCC comprises of residences, commercial units, a shopping mall, serviced suites, hotels and offices. The size of the land is 22 acres (960,000 sq ft)
In the article in The Star, its managing director Sam Tan said that while popular opinion says that there is an oversupply in Iskandar for residential he is not concerned. His main reason is that the ‘over-supply’ has more to do with the fact that the launches has become unaffordable for locals. Ad for Ken JBCC, they are focussing on “good value”, good location in the city centre as well as Ken’s construction and engineering experience. The focus should always be on a product which is affordable for the locals. In this sense, demand will still be there.
I think he has hit the right spot with his assessment. Of course I must add that it is not just in Iskandar but also in some popular areas in Greater KL as well as the properties in the island of Penang. When we look at the launches from the year 2010 onwards, every developer was launching properties with ever increasing prices per sf. In Penang Island, within that few years, prices was changing monthly! Thats what I really feel. So much so that I told my wife, how can this ever be sustainable, this is crazy. Today, new launches are priced more affordably. RM500 psf which was unheard of previously are now available again and the momentum of ever increasing prices has stagnated. Few years ago, in KL, I told my wife that if my condo reaches RM300K I would sell it. It was in 2010. Suddenly my agent called and said I can get up to RM350K for you. I did not know what to do except to say, not yet. I was still renting it out at that time. Today, it will easily be 450K. Kelana Puteri’s size is 1055sf. In other words, still way below RM450psf which is no longer an available launching price for most projects.
I still believe demand is strong but only at the right prices with a location which is still acceptable. Of course, do a good marketing for it to get as many people to know about it as possible and not put up one or two-day newspaper advertisement and hope buyers would queue up for it. Not within these few months leading to GST anyway. Ken JBCC, I think I should be able to afford a flight ticket to be there for their launching next year. Happy investing.
written on 10th Sept 2014
Next suggested article: Nothing in Iskandar yet for me but does not mean it’s NOTHING to me.