An optimistic outlook ahead
THE Johor property market is looking optimistic this year, as property investment is still deemed the best investment to hedge against inflation. Johor’s unique location, just across Singapore, sets it apart from other states and is a key factor to the continuous developments taking place especially in Iskandar Malaysia.
Johor Real Estate and Housing Developers Association ( Rehda) branch chairman Hoe Mee Ling said that sales for both industrial and residential properties in the state were looking up this year.
“In terms of residential developments, landed properties are still very popular, so for developers who can come up with a good concept equipped with easy accessibility and infrastructure, their properties will be in great demand.
“Even the demand for serviced apartments are still resilient, especially those strategically located because compared with landed properties, its absolute pricing is lower and more affordable,” she said during an interview at Rehda’s office.
She said that on average, buyers could get a serviced apartment for about RM300,000 whereas prices for a landed property in the same location could go up to twice as much.
Hoe added that the growth in the industrial property sector was also looking up with more and more businesses migrating or expanding their operations into the economic corridor.
“Industrial properties are still in demand with quite a number of Singaporean businesses looking at Iskandar Malaysia to set up factories as they expand or even relocate here,” she said.
She added that mega projects such as the high- speed rail ( HSR) linking Kuala Lumpur and Singapore and the Malaysia- Singapore Rapid Transit System ( RTS) link would reassure buyers of their investments.
“If you are planning to buy a property, this would be the right time,” she said, adding that the property market was likely to see an upward trend in the coming years.
Johor Malaysia Property Exposition ( Mapex) organising chairman Simon Heng concurred, adding that developers usually hit a wall when banking institutions reject keen buyers’ loan applications.
“It is not that people are uninterested in acquiring property, but it is more of a loan hitch that deters the transaction. Some 30% of loan application for properties valued at between RM250,000 and RM750,000 are rejected by banks,” he said.
He urged financial institutions to ease the criteria set especially for first- time homebuyers or properties below RM500,000.
“Most first- time homebuyers are likely to be young adults with their whole future and careers ahead, which means they should be able to service their loans,” he said, suggesting for banks to also impose special interest rates to attract more buyers.
Heng said that the Mapex 2016 was looking positive as they forecast to see better sales compared to the last round in November last year.
“In the last round, participants saw sales of 469 units with a transaction of RM415 mil, an increase by 36% compared to the Mapex in May last year,” he said, adding that the majority were local buyers.
Heng said that while foreign investments were welcome, the bulk of the buyers would likely be local, in view of the ceiling price at RM1mil and international quota.
He added that some 11,400 of mixed property units valued over RM11.2 bil would be up for grabs during the upcoming Mapex 2016 held from today to Sunday at Johor Baru City Square shopping complex.
“A total of 30 developers will be showcasing the available property, mostly within the Iskandar Malaysia region. The residential, commercial and industrial units will be going for between RM250,000 and RM3mil during the expo,” he added.
Themed “The Future is Now”, Heng said that visitors at the expo could also attend the property talks by Ryan Khoo and Ho Chin Soon as well as a feng shui talk by Master Paw.
Mapex 2016 was looking positive as they forecast to see better sales compared to November last year. – Johor Malaysia property Exposition ( Mapex) organising chairman Simon Heng