This is a hot word recently. Medini has been exempted from the 30% property gains tax in Malaysia. This is an extremely important news because this meant that foreign buyers, especially from Singapore may continue to invest without having the dark cloud of 30% RPGT over their head. Medini is being developed by Medini Iskandar Malaysia which is a GLC and both Mitsui Co Ltd and United World Infrasturcture owns 20% stake each. Back in 2006 and 2007, Medini was not a preferred investment location. There were no huge population and no other activities as well. Thus, this exemption may provide the right catalysts for investments into Medini.
From the Iskandar Investment website, this is what Medini in terms of stats:
- International Mixed-used Development
- 96 million sq.ft./2,230 acres in Nusajaya.
- The maximum permitted Gross Floor area (GFA) of 182 million sq.ft.
- Expected Gross Development Value(GDV) of US$20 billion over 15-20 years. 20% to be developed by 2014 with a targeted population of 50, 000
Medini is located around 50km away from Singapore CBD, via the Tuas link. Is this far? I would say in terms of property investment, it is not really normal for anyone to invest in a property 50km away if they intend to commute to and fro. There are some estimates that it is around 40-50 minutes from Singapore’s CBD. However, let’s look at some numbers. If you can spend just S$400,000 for a huge landed property in Medini, versus nothing more than just a 700sf HDB flat in Singapore, which would you spend it on? Yes, if it is your first property and you are working in Singapore, of course HDB. However, think on a longer term? Answer is yours to make.
written on 21 dec 2013.
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