Iskandar developers see continued strong momentum

The proposed Rapid Transit System linking Johor Baru and Singapore would make Iskandar more attractive to investors.

JOHOR BARU: Property developers in Iskandar Malaysia are reaping big rewards as the property outlook in the economic growth region remains vibrant.

Johor Real Estate and Housing Developers Association (Rehda) branch deputy chairman Wong Kuen Kong said many Johor Rehda members had reported good response for most new launches.

He said the “feel-good” factor was a continuation from last year, with many optimistic that the momentum would be maintained in the second-half of this year and 2014.

“The confidence level among developers in Iskandar is now at an all-time high,” Wong told StarBiz.

He said this could be seen from the many new property launches that had taken place almost every weekend in the first half of the year.

Wong said Johor Rehda members had already started planning for more new launches until the end of this year.

“Previously, Klang Valley and Penang were high on the radar screen. Now Iskandar has joined the two as the most-sought-after location when it comes to property,” he said.

Developers that participated in the Malaysian Property Exposition (Mapex) held in May this year raked in RM1.6bil in sales over a one-month period compared with RM672.14mil from the Mapex held in November 2012.

The total units of properties transacted had also increased to 2,000 in May compared with 1,449 in November.

The 30-day period starting from the first day of Mapex is the benchmark used by Rehda to determine the value of sales by participating developers.

However, he reiterated that the prices of properties in Iskandar were still low compared with those in the Klang Valley and Penang.

“Iskandar is a long-term development and if the prices of properties do not skyrocket in the mid-term, it will continue to attract strong interest from investors,’’ added Wong.

By The Star