Malaysia Property Roundup: Focus On Iskandar

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While the effect of the cooling measures are still (slowly) kicking in for the property sector in the Klang Valley and Penang, the Iskandar region seems to be cooling down significantly.

The Edge reported last week that there has been rather cool responses to the recent launches in the Iskandar region. For example, UEM Sunrise had launched its Almas Suites in Puteri Harbour (546 SoHo units), with only 15% of the units booked after a week (although the selling price was at RM800 PSF which was lower than the advertised price at RM895 PSF). Not good.

iskandarApart from the blanket hike in RPGT and the banning of the DIBS scheme, the increase in the minimum purchase price for foreigners (RM1 million, up from the previous RM500,000) seems to impact Iskandar more than elsewhere. Many of the new projects in Iskandar are targeted to foreigners (Singaporeans?) with prices set around the “sweet point” of RM500,000 – RM800,000 (SGD200,000 – SGD320,000) this will create a glut of supply (mainly high rises) in the short term.

Puteri Harbour, Iskandar Region (Malaysia)

Properties in the Puteri Harbour seem to be the hardest hit

Supply of high rises also increased drastically in the third quarter; according to government data the supply of condominiums increased by 130% vs the second quarter this year. As we do not expect these “superfluous” high rises to be taken up by the locals, and the prices are set to fall.

Additionally, with the increase in the minimum foreigner purchase price to RM1 million, expect prices of new properties to be pushed up accordingly. This will have a negative “halo effect” on lower tier properties which will also be more expensive, thus  hurting the local buyers further.

In the face of the slowing demand, developers have now started to offer some really dubious schemes to in order to drive take up rates. There have been anecdotal reports that there are some “Buy One Free One” schemes by foreign developers which will further increase speculation, and worse, flood the market with “free” units when the maturity period ends.

We are not fans of “cooling measures” especially when done in knee jerk manner, and while prices do seem to be stagnant or even dip in the coming year, it remains to be seen if the dip is followed by a reactionary spike which we have seen in Hong Kong and Singapore.

Specific to Iskandar – we are still bullish about the region’s potential for the long term, but in the time being, we shall be adopting a “wait-and-see” approach like, well, the rest of the market.

New Developments & Launches

rimbayuIJM Land will be launching the third phase of Bandar Rimbayu (consisting of semi-detached houses) in February next year. Bandar Rimbayu is a 1,879 acre leasehold development near Kota Kemuning. The semi-detached homes are on a 50+ acre portion of the township with build-up of 2,100 sq ft on 32ft x 70ft land. Prices are  RM850,000 upwards. Bandar Rimbayu sports a “green theme” which is all the rage these days (think Setia Eco Park, Ken Rimba, etc).

IOI Properties has launched Clover and Ariana in Bandar Puteri Klang last week. Clover are some 84 double storey linked homes with 20 x 75 build up area at RM600,000+, while Ariana is slightly cheaper at RM520,000+ with smaller (18 x 75) sizes. To find out more, call 03-51618833.

Tiara Mutiara 2 in Puchong was launched last weekend by Mutiara Johan; it is a freehold condominium cum shop office priced from RM448,000 onwards. There are 367 units up for grabs. For more information, visit their sales office at Menara Mutiara Bangsar off Jalan Bangsar, or call 03-22878383.

Events

Nothing much happening around town since school’s out and the end-of-the-year festivities are kicking in. But hardcore hustlers are gonna hustle, still. 🙂 Setia Haruman is having a showcase over the weekend for its Centrus SOHO 1 property with incentives such as DIBS (probably the last one ever with the looming January 1st deadline) as well as free legal fees on the S&P. Centrus SOHO is in Cyberjaya. For more information, call 03-83128080 or head directly to its sales gallery, CBD Perdana 2 in Cyberjaya tomorrow or Sunday.

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About Khai Yin

When I am not writing for GoodPlace.my and helping my readers find properties though the DealMatcher service, I spend time doting on my three kids: Wenyi, Qinyi and Eian. My personal stuff, some published essays and contact details can be found at khaiyin.com

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