Remember just three years ago, Iskandar as a topic of property investment was hotter than your frying pan? Well lately, every article is about how Iskandar should no longer be a place for you to invest because of a host of issues. Oversupply, oversupply and oversupply. Haha. No joke, if there are articles which does not focus on this word for Iskandar, it must be a fake article. The latest one I read said that there is only one way for Iskandar moving forward. That way is ‘down’. The last few sentences included a word of caution. If you should buy into Iskandar, be prepared to have an exit strategy two decades later. There was no further explanation why two decades, is it because the maximum profit would be obtained then? Is it because if you buy now, the market will be down continuously and you can only sell two decades later?
In the whole article, it was also mentioned about how so many prominent personalities were so bullish about Iskandar and how much money that they poured into Iskandar. For example, Robert Kuok, Lang Walker, Peter Lim and many other big players. All their investments were stated but no mention about if all of these prominent personalities or big players have pulled out. Perhaps the reason is because they have not pulled out but have gone into hibernation mode? I have no idea but personally, if these investments have NOT been sold to any other investors at fire-sale prices I think the overall picture is still intact. Come on, for the whole of 2014, even the property market in Singapore has been going down. Is it also because of oversupply? Please do note that majority of the units are government controlled based on demand from the citizens and PR. For 2015, the number of units being built would be lessened further which meant that everything is being planned well ahead, right? If so, why are the prices still on a downtrend? Actually, as soon as the Singapore property market weakens, it would automatically pour negative sentiments onto Iskandar. It’s just two bridges away, what do you expect?
It also said that for the past 3 years, Singaporean investors were pouring money into Iskandar and thinking that the jobs would pour in and thus demand would increase and they can then sell the properties they bought. Haha. If I am a Singaporean investor thinking this way three years ago, I think it’s time they understand the bigger picture on Iskandar. 3 years to suddenly turn empty pieces of lands into factories, complete with all infrastructures and lot of jobs, all paying high salaries and all the Johoreans who work in Singapore all flocking back, you must be joking. Sorry if that’s the thought because property investment which happens in such a way meant bubble will be bursting soon. Seriously, EVERYONE buying to exit in a few years’ time? Well, happy investing with the amazing 3 year ‘Get Rich’ mentality then.
written on 5 Jan 2015
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Those naive Singaporeans who bought into Iskander failed miserably to account how their own smart Singapore Govt does things. It releases plots of land in Singapore to build only a few hundred units at a time. In Iskander, Johore releases a land mass, three and half times the size of Singapore at one go. Each plot catered for few thousand units and many plots at one go despite the size of Johor population is much smaller than Singapore. These big Chinese developers massively build them, thousands of units for each development, causing massive over-supply. The whole Iskander infrastructure, (offices, educational institutions, factories and others) will take about twenty years to complete. Instead of pacing themselves, homes in tandem with infrastructures, they did most of residential units without the supporting workplaces coming in. These Singaporean residential owners will then have to leave their units empty for up to twenty years awaiting for future infrastructure employees-tenants to occupy them.
Today, if one visits China, many ghost towns are not difficult to miss. These same Chinese developers, experienced in building ghost towns, are now bringing their operational models to Johor. Malaysians are smart. With vast lands, they prefer to invest in landed properties, whilst Singaporeans foolishly invest in high rise condos, hopefully (haha…) there will be enough tenants to occupy all these residential high rise. As if Johor is not big enough, the Johor Govt throws good money into the seas to creat islands known as Forrest City.
So people buy iskandar to keep for 20 years because they havelots of cash, cannot is it? U blow ah?
Condominiums are clearly in bubble state since end 2013 in Iskandar. With the recent slow down in launches, the peak supply should be around 2016-2017, before stabilising. Demand for landed properties is still healthy. The peak supply should be in 2015 before it starts dropping since there are not many launches since 2014.
I quite agree with you N_D. I also hope it weaken a bit more though. No harm for now.