It’s not easy for Iskandar Malaysia these days. Any news are most of the time negative. Latest one which was widely reported in all medias would be the cancellation of Asian Trade Centre by UEM-Sunrise. This would have been a huge catalyst project in Gerbang Nusajaya. According to Chief Executive of the Iskandar Regional Development Authority (IRDA), Datuk Ismail Ibrahim, this cancellation should be viewed as a decision in the interest of the company. If they found the return on investment (ROI) to be not lucrative, they should be free to change it to something more profitable. This should not be viewed as Iskandar having problems.
Personally, I think he is quite right about the decision to focus on ROI. However, not many would believe that this cancellation has nothing to do with the current negative sentiment surrounding Iskandar. Just look at every new report from all medias, whether they are based in Malaysia or even from Singapore. I still remember when Iskandar was still hot just over 2 years ago, every piece of news was about which developer is launching what and all the new investments and the bullish sentiment then.
Has Iskandar stopped growing then? Seriously, no. I have yet to read any news report about the current construction for existing projects being cancelled, abandoned or even stopped. International schools are still being planned, being constructed and more are being opened. Read here: 12 International Schools just within Iskandar?
Is Iskandar new launchings still growing feverishly then? Haha. Answer is of course not. Which local developer has recently announced their biggest project launching is in Iskandar? I have not read any. Do note that developers who has landbanks in Penang, Greater KL and Iskandar is more likely to have the largest piece in Iskandar instead of the other two places. However, no one would be thinking to push for Iskandar first and the other two later. Read here: “We prefer the Klang Valley and Penang over Iskandar”
Developers are now focussing on affordability and this theme cannot be extended to Iskandar, yet. The reason is because the demand for these first time homes would more likely be in Penang or Klang Valley due to the existing working population and the growth of urbanisation. Iskandar, in terms of actual employment opportunities is definitely lower than the other two. In fact to hope that Malaysians working in Singapore to stay in Iskandar instead is also far-fetched because of the current links which are inadequate. Unless more links are built to make it really convenient, the demand from these people will not suddenly increase.
Would this change? Yes, of course. With the right policies, everything can change. With the right sentiment arising from positive new developments, of course. If there are suddenly a few more catalytic developments jointly developed by Malaysia and Singapore being launched and the take up is good, it would also add to the positive sentiments. So, should buyers be selective and buy projects which should be considered undervalued under good circumstances? Actually, ANYTIME is a good time to buy as long as the objective is clear and is met. Disagree? There are lots of other places to buy. Happy deciding.
written on 31 May 2015
Next suggested article: Very few Singaporean investors want Iskandar.
