Iskandar Capital. 3,000 acres. Mixed-Income Housing in Johor.
Someone asked this some time back. Since Johor has the highest number of overhang properties (means completed and yet has remained unsold for 9 months after completion), surely developer should stop building and continue selling the current stock until it finishes first, right? If the developers continue building, then it will cause the overhang problems to get worse right? Perhaps this person is right, I am not sure as I am not the targeted buyer, a Johorean and also not a property developer.
Anyway, the answer will have to be answered by the potential buyers and the property developers. We do have one latest update about a developer who will be developing a 3,000 acre site in Iskandar Puteri.
Article in edgeprop.my Iskandar Capital Sdn Bhd has announced that it will be developing a mixed-income housing (MIH) project that will be developed in Wawari, a 3,000-acre sustainable development in Iskandar Puteri, Johor.
Datuk Khairil Anwar Ahmad, who the chairman of Iskandar Capital Sdn Bhd said that the MIH is a model that promotes fair, equitable, inclusive and affordable housing for all income levels in Johor.
He said, “Through this initiative, the low income (B40) and middle-income group (M40) can be neighbours living in one community. Iskandar Capital is committed to continue supporting the state government in safeguarding the interest of the local community and increasing the number of home-ownership among Johoreans.” Article in edgeprop.my
Two questions about the overhang properties
However, I have 2 questions to ask. First one is, do we know the reason why people just did not want to buy the overhang properties? If the reasons include price too high for some, unattractive type of property for some, wrong location for some and even the buyers just do not like that particular developer, then does continue selling the same ‘wrong’ property works? Perhaps some of the stock can be cleared but if someone did not like the property a year before, would they like the property a year later?
Second question is whether the developer will be building the same kind of properties as the overhang. If the property developer is simply building the same kind of undesirable properties, then this property developer is really trying to lose money… If the property developer realised that if they build at right price, some will buy, if they build the right type, some will buy, if they built at better locations, some will buy then should they build or should they not build?
Let’s hope the overhang was also caused by the market situation too
We can see that property transactions did increase as soon as lockdowns were lifted. In other words, one cause was also because people just could not complete their transactions. This may be one of the reasons. However, for JB, the catalyst will be how JB and Singapore is more integrated. We need to have a clearer update on the Rail Transit System because this will help to drive up demand for properties because there are many people who are staying in Singapore because they hate travelling daily. They are thus willing to pay S$700 just to stay in a room instead. What’s clear is this.
Current demand must be from Johoreans who are working in JB first. So, any new developments must meet requirements of this group of buyers first. Else, it will be very hard to sell yeah.
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