Metropolis in the making
ONE of the biggest development projects happening in the country, Iskandar Malaysia is the main southern development corridor that encompasses the ideals of coexistence between technology and nature.
Based on investments that have taken place, industries and corporations are eagerly anticipating the completion of the entire development in 2025.
In an article titled Johor’s Iskandar Malaysia records RM4.3bil in property transactions published in The Star in July, Iskandar Malaysia was reported to have recorded the highest number of property transactions in Johor.
It stated, “According to a report by the National Property Information Centre, of the recorded 10,058 transactions valued at RM4.33bil, Iskandar Malaysia – which combines four major towns (Johor Baru, Kota Tinggi, Pontian and Kulaijaya) – emerged tops with 3,995 transactions, followed by Kluang with 745, Batu Pahat (521) and Muar (480).”
Concerns about the change of government, uncertainty of the Kuala Lumpur-Singapore HighSpeed Rail (HSR) project and the curbing of China’s capital outflow for international investing have no doubt risen in recent months, but they are unlikely to put a substantial damper on the growth of economy and population in Johor.
Debunking concerns
All is not lost in regard to the HSR project that was planned to reduce rail travel time between the two national capitals.
Instead of cancelling the project entirely, Malaysia and Singapore agreed last month to postpone the development of the HSR for another two years.
Under the terms of the new agreement, the HSR service is expected to start by Jan 1, 2031 instead of Dec 31, 2026.
Some analysts and experts from the property and real estate industry believe this delay may have a slight impact on property sales for Iskandar within the first five years of its completion.
Nonetheless, this may turn out to be a blessing in disguise as it also represents the best time for investors to take advantage of the lower prices and discounts offered by developers who are eager to boost sales.
By the time the HSR project is underway, property values are likely to increase, making prior property deals look like a bargain.
Besides that, the government has maintained its pledge to provide good transport infrastructure by agreeing to continue with the Johor Baru-Singapore Rapid Transit System (RTS) Link project, albeit looking for ways to lower costs to sustain the economy and federal budget.
In July, Transport Minister Anthony Loke said that once the Cabinet has approved of the RTS Link, a joint venture company between Malaysia and Singapore would be set up to ensure smooth implementation of the project.
With this reassurance, investors can count on the RTS Link to serve the public while awaiting the completion of the more advanced HSR.
There is good news for individuals who fear the possibility of a housing glut. In a Property
Insight article, REI Group of Companies’ chief executive officer and co-founder Dr Daniele Gambero said, “I will not be surprised to soon see some softening of the curb measures limiting capital outflow from China, especially towards Malaysia.”
Titled Iskandar Malaysia: The Good, The Bad and the Ugly ,the article suggests that while the curbing of capital flow from China has reduced the amount of investment flowing into Johor, the initial influx of Chinese investors to Iskandar Malaysia has brought substantial global attention to the region and country as a whole.
This new level of attention on Iskandar Malaysia has certainly excited developers as they can now look to the possibility of attracting investors from new international markets such as Singapore and Japan.
Invest, work, live, play
The manufacturing industry is still the main economic and investment contributor in Iskandar Malaysia.
Ina StarProperty report titled Manufacturing the most attractive sector for investors at Iskandar,
“Among the nine sectors promoted, manufacturing recorded a total investment of RM62.74bil since its inception in 2006 until June this year, followed by tourism (RM7.12bil), logistics (RM6.69bil), healthcare (RM4.41bil), education (RM2.76bil), finance (RM2.09bil) and creative (RM590mil).”
As more manufacturing industries flock to Iskandar Malaysia to set up subsidiaries for their businesses, more manpower and skilled workers are needed to accommodate them, thus creating countless job opportunities for Malaysians and individuals from overseas. This vibrant economic growth has attracted a large population in search of a new life.
Besides the availability of residential property that range from affordable housing to luxury condominiums, Iskandar Malaysia offers a vast array of amenities and necessary ingredients to fulfil everyone’s lifestyle needs.
Among its highlights is EduCity, which boasts quality education options. Nicknamed the City of Knowledge, it offers prestigious local and international higher learning institutions such as Newcastle University Medicine Malaysia, University of Southampton Malaysia, University of Reading Malaysia and Raffles University Iskandar.
With the variety of choices available, local and international students can connect with one another through learning and living as a community.
Iskandar Malaysia is also poised to gain traction as a theme park hub.
There has already been influx of tourists, which is only set to grow with the completion of ongoing development.
Legoland Malaysia Resort, Sanrio Hello Kitty Town, Angry Birds Activity Park and Austin Heights Water & Adventure Park are some of the attractions located across Iskandar.
Bright prospects
Currently, there may seem to be a surplus of residential properties in Iskandar Malaysia. However, considering the need for another 200,000 to 300,000 houses to be built to achieve the targeted number of houses by 2025, the population boom that Iskandar Malaysia is expected to experience in the next 10 years will even out the supply and demand of property in the area.
Investors do not have to worry about making a loss as the general trend of property price is upward in contrast with other material things such as cars, phones and designer items.
Only time will tell if Iskandar Malaysia becomes a metropolis rivalling national capitals in Asia. Taking into account all the projects that are being built and planned, the region has all the makings of success.