I'm not buying a home in Iskandar

[reporter2]

http://www.straitstimes.com/archive/...andar-20130609

I'm not buying a home in Iskandar

But I may consider investing there when commercial activity picks up and prices come down

Published on Jun 09, 2013

By Yasmine Yahya


I have visited Iskandar Malaysia seven or eight times this year to write about the development, prompting friends and others to ask the inevitable question: Have you bought a house there yet?

The short answer is: No.

I have met many happy people who have bought homes in Iskandar; some more than one, while others are looking to buy their second or third property.

I don't think they're foolish or wrong but I will not be joining their ranks any time soon.

Singaporeans and Singapore-based expatriates are buying homes in Iskandar for two main reasons: to live in a low-cost and spacious environment or to invest in what could be a boom town for property.

I don't really want to do either of those things.

For starters, I think we are at a point where it is either too late or too early to jump into the market.

Property prices in Iskandar have doubled or even tripled in the past two to three years. True, homes are still much cheaper than in Singapore, but a good investment is not one that is merely cheap, but one that holds great potential value.

Several bankers and property consultants I have spoken to have even started calling the area's property market a bubble.

In fact, they noted, prices in Iskandar - population 1.3 million - are already level with those in Kuala Lumpur, yet Kuala Lumpur is a mature city where multinationals place their offices and expat staff.

If there is a city in Malaysia where you could most easily get rental income, it would be Kuala Lumpur.

Iskandar's commercial scene, on the other hand, has yet to take off. The multinational firms already doing business there are mainly operating out of factories and hire blue-collar workers.

These companies are more interested in renting dormitories for their workers than swanky apartments for themselves while the bosses are buying their own homes.

For now, a lot of hope is being pinned on Pinewood Iskandar Malaysia Studios, the Nusajaya offshoot of the British film studio that produced the James Bond and Harry Potter movies.

It is expected to create a constant pool of transitory workers that will fill the rental market once it opens next month. The firm said it will create 1,500 jobs by the end of the year.

It will then bring in a stream of actors, directors and other movie production professionals, all of whom will need housing in Iskandar while shooting films for months at a stretch.

This will likely create some demand for rental accommodation, but Pinewood Studios remains the only big commercial player to start operations soon.

Many others, such as billionaire Peter Lim's Motorsports City and Afiniti Medini, which will have a hospital and a corporate training centre, are still years away.

In the meantime, there are now 430,000 homes in Iskandar, with 64,000 more under construction and still much more land that is yet to be developed.

I would consider investing in Iskandar in the future but I would first like to see a pickup in commercial activity there, and for prices to come down to more reasonable levels.

Of course, many people are buying houses in Iskandar as getaway homes, but I don't want to live in Iskandar because I don't drive and I don't want to get a driving licence.

Many of its new and sparkly housing developments are in Nusajaya, a former jungle that has been cleared - yet much of it is still empty and amenities are spread out.

There is one public bus that comes by hourly. If you are in a hurry or want to go somewhere not along the bus route, you would have to drive.

The Iskandar residents I have interviewed say they enjoy the peace and quiet of the place and the fact that there are no crowds, unlike in Singapore.

But I like living in a city. I enjoy the constant buzz and excitement of city life while my flat gives me all the peace and quiet I need.

Plus, if I move to Iskandar, wouldn't I be contributing towards a more crowded Johor?

I'm looking at this over the long term. Eventually, more and more Singaporeans will move across the Causeway to retire in the house of their dreams.

I will still be in Singapore, enjoying empty MRT seats and reading a book in peace and quiet.

[email protected]

[Arcachon]

Singaporeans and Singapore-based expatriates are buying homes in Iskandar for two main reasons: to live in a low-cost and spacious environment. And cheap education (international school)

[dare2]

Singaporeans and Singapore-based expatriates are buying homes in Iskandar for two main reasons: to live in a low-cost and spacious environment. And cheap education (international school)

Malborough College is actually more expensive than UWC...but they do have sprawling purpose built campus....

actually some discussion on this report have been made over at Misc>Malaysia Properties...

[hyenergix]

As to her question if she is too early or too late, it also depends on e purpose n ready cash.

My assessment is e current bull run for landed is abt 50-60% point before it slows down significantly in 2016/2017 but landed will continue to enjoy comfortable appreciation thereafter. For condos near 1st n 2nd link, they r prob abt 70-80% of e peak n there is a chance of bubble in 2016/2017 judging from e profile of e buyers.

The more interesting part is e RTS (if implemented by 2020) which will kick start another round of bull run for properties in tt station area in JB (same goes for e area in SG). In addition, if our SMEs move over there in bigger number, more international companies join in n JB govt decides to go ahead w its MRT/LRT plan, then this will lead to constant capital n rental appreciation.

In short, I think price correction is unlikely for landed, n if e right location is selected for either landed or condo, e value will continue to climb.

[focus]

A malaysian property investor/guru said he rather buy landed housing in areas with local demand rather than those condos(especially must avoid) and landed in area marketed to foreigners(esp. singaporeans) with the mm2h programme. Of course, he is a malaysia with access to those area. I'm not sure whether singaporeans can buy those area(how many international lots are open up) if landed are priced >$500k up.

Think this discussion is quite similar to the one we have in singapore about whether CCR or OCR is good.

From the heartlander point of view, one of the argument for OCR is it is well-supported by the local demand while CCR is based on speculative demand by foreigners.

[dare2]

Now if everyone is moving to JB...so good upside for property there, right?....if train is empty, Sg would be a ghost town liao???? Maybe she is thinking there will be reversal of role when that happen...and if she stays, she would then be the pioneer here and when people find JB getting crowded and expensive they will start coming back to Sg then she would huat with a string of Sg properties....

[hyenergix]

Actually there now a lot of things for family fun in Johor at more affordable cost. The only thing is personal safety, which I hope that will be improved given the economic importance of Iskandar to Johor. Traffic jams at the 1st and 2nd links are getting worse, which is a good sign (as long as you are not in them).

Sunway eyes 2 theme parks in Iskandar
Jun 11, 2013

http://www.propertyguru.com.my/prope...ks-in-iskandar

[alamak]

Actually there now a lot of things for family fun in Johor at more affordable cost. The only thing is personal safety, which I hope that will be improved given the economic importance of Iskandar to Johor. Traffic jams at the 1st and 2nd links are getting worse, which is a good sign (as long as you are not in them).

Sunway eyes 2 theme parks in Iskandar
Jun 11, 2013

http://www.propertyguru.com.my/prope...ks-in-iskandar

The Ali baba and 49 thieves will never leave the golden goose of Iskandar ...
Who are the Ali baba(s) ???

[kane]

A malaysian property investor/guru said he rather buy landed housing in areas with local demand rather than those condos(especially must avoid) and landed in area marketed to foreigners(esp. singaporeans) with the mm2h programme. Of course, he is a malaysia with access to those area. I'm not sure whether singaporeans can buy those area(how many international lots are open up) if landed are priced >$500k up.

Think this discussion is quite similar to the one we have in singapore about whether CCR or OCR is good.

From the heartlander point of view, one of the argument for OCR is it is well-supported by the local demand while CCR is based on speculative demand by foreigners.

Local demand provides a more realistic base to the property prices.

[Rysk]

..............

I will still be in Singapore, enjoying empty MRT seats and reading a book in peace and quiet.

[email protected]

NB!! come 2030.. without this design.. how to find empty MRT seats leh

[Rysk]

By 2030 if she can find a seat any time of the day.. I salute to her

[dare2]

....the young lady guru has another article published in ST today.....she is now casting doubt on the claims on Iskandar's property sales because she couldn't find data to substantiate the claims by developers.....

[lajia]

dubai is a lesson for many if some have not yet learned...without domestic demand, it is way too dangerous and risky.

[hyenergix]

....the young lady guru has another article published in ST today.....she is now casting doubt on the claims on Iskandar's property sales because she couldn't find data to substantiate the claims by developers.....

The data is actually quite easily obtainable from propertyguru or iproperty, and internet forums. Then you can make a few visits to showflats or calls/emails to the developers' office to verify. That is all that is needed to capture the information required since (I feel) Johor property market is much easier to understand than Singapore property market.

As the information is still not very efficiently disseminated to the public, sometimes it is the developers or sellers themselves who are not very sure of setting what price to maximise profit, so it can be to property hunters' advantage.

[fiat500]

Don't forget staying in iskandar as yr weekend home or holiday home u will definitely need a car to move around cos public transport is not easily accessible or if it exist at all..
N u will need a singapore registered car too which will be very costly..

[hyenergix]

Don't forget staying in iskandar as yr weekend home or holiday home u will definitely need a car to move around cos public transport is not easily accessible or if it exist at all..
N u will need a singapore registered car too which will be very costly..

I would recommend buying near nodes of transport e.g. near CW or Larkin bus routes or future LRT/MRT lines in Johor. My bet is once the RTS is up, the Johor government is likely to build the network that links to the RTS according to the transportation plan.

[fiat500]

I would recommend buying near nodes of transport e.g. near CW or Larkin bus routes or future LRT/MRT lines in Johor. My bet is once the RTS is up, the Johor government is likely to build the network that links to the RTS according to the transportation plan.

Malaysian public transportation not trustworthy at all...
Good example is the public transport in KL now..It's atrocious!
U will definitely need a singapore registered car to move around in johor n that is not cheap!

[hyenergix]

Malaysian public transportation not trustworthy at all...
Good example is the public transport in KL now..It's atrocious!
U will definitely need a singapore registered car to move around in johor n that is not cheap!

Better option is to take public transport up (the CW buses should be quite okay) then drive your own JB car, if car ownership in SG is really difficult.

[fiat500]

Better option is to take public transport up (the CW buses should be quite okay) then drive your own JB car, if car ownership in SG is really difficult.

Too much hassle.....
U will need a singapore car to live in johor.

[hyenergix]

Too much hassle.....
U will need a singapore car to live in johor.

If you are a Singaporean.

[fiat500]

If you are a Singaporean.

Yes of course..
That's y it's advisable for singaporeans to consider carefully b4 buying into iskandar..
Transportation will be the main concern.

[hyenergix]

These sort of incidences in Singapore is making Bukit Indah seems safer (serious!):

http://www.straitstimes.com/breaking...-rushed-sgh-20

http://www.straitstimes.com/breaking...o-kio-20130615

http://www.straitstimes.com/breaking...because-police

http://www.straitstimes.com/breaking...-year-20130616

[dare2]

Too much hassle.....
U will need a singapore car to live in johor.

...you are right most people who bought are those who are mobile and able to drive around JB, but do note that many have the intention to retire there, so may not neccessary need to have a Sg plate eventually...otherwise they can consider weekend car for their drive to their weekend home.....in any case if you think its a hassle then its not the right kind of investment to you.....just like many who complained being stuck in the jam from East to West in their daily commute to and from work - which works out to longer time taken as compared to the commute from Bt Indah to the West region...but still think its a hassle to move to JB....the cost of being stuck in Sg jam on Sg petrol price can more than be compensated by the cost of Msia petrol price minus toll and distance travelled.

[hyenergix]

For most young families currently, it is the schools for their children that is holding them back.

[fiat500]

...you are right most people who bought are those who are mobile and able to drive around JB, but do note that many have the intention to retire there, so may not neccessary need to have a Sg plate eventually...otherwise they can consider weekend car for their drive to their weekend home.....in any case if you think its a hassle then its not the right kind of investment to you.....just like many who complained being stuck in the jam from East to West in their daily commute to and from work - which works out to longer time taken as compared to the commute from Bt Indah to the West region...but still think its a hassle to move to JB....the cost of being stuck in Sg jam on Sg petrol price can more than be compensated by the cost of Msia petrol price minus toll and distance travelled.

Even if u intend to retire there, u will still need to come back to sg frequently i m pretty sure..
Your family, luv ones, relatives, close friends are in sg. U will need to do yr banking in sg, u miss sg food, u hv to buy yr 4d, toto, yr weekly badminton, karaoke sessions n many other nitty gritty activities..... Once u are retired from working life, it does mean yr activities stop!
End of the day,u gotta hv a sg registered car to live in jb..

[lajia]

i totally agree....which is why i think the market there is very untested. many is using retirement as excuse...buy now later if cannot sell just take it as retirement home la.

ask yourself, when you retire, what do you want most? shopping mall? lego land? what else is there, i really can't think of any....

so, many singaporeans will not be used to that kind of life, I'm not saying 100%, but most of them.

it is just not realistic. many who migrate to australia for retirement will tell you their stories if their make their way back here...

families & friends....makes the most of your life.

Even if u intend to retire there, u will still need to come back to sg frequently i m pretty sure..
Your family, luv ones, relatives, close friends are in sg. U will need to do yr banking in sg, u miss sg food, u hv to buy yr 4d, toto, yr weekly badminton, karaoke sessions n many other nitty gritty activities..... Once u are retired from working life, it does mean yr activities stop!
End of the day,u gotta hv a sg registered car to live in jb..

[dare2]

Even if u intend to retire there, u will still need to come back to sg frequently i m pretty sure..
Your family, luv ones, relatives, close friends are in sg. U will need to do yr banking in sg, u miss sg food, u hv to buy yr 4d, toto, yr weekly badminton, karaoke sessions n many other nitty gritty activities..... Once u are retired from working life, it does mean yr activities stop!
End of the day,u gotta hv a sg registered car to live in jb..

...wah u still q up at bank and waste time there?......they have 4d and toto tehre also what and malaysian food not that far off Sg food...ur families can visit u also....anyway dun tell me u will still visit ur families every day one...they also got their work and other activities...feel like it can drive malaysia car down to Malacca for day trip or hop on HSR to KL....but of course for someone with your mentality...do stay in Sg and continue queing up at bank to pass time when u retire....

[dare2]

i totally agree....which is why i think the market there is very untested. many is using retirement as excuse...buy now later if cannot sell just take it as retirement home la.

ask yourself, when you retire, what do you want most? shopping mall? lego land? what else is there, i really can't think of any....

so, many singaporeans will not be used to that kind of life, I'm not saying 100%, but most of them.

it is just not realistic. many who migrate to australia for retirement will tell you their stories if their make their way back here...

families & friends....makes the most of your life.

hahaha JB is just 30-and hour drive away...just like driving from Jurong to Punngol not like gotta fly for 6 hours to australia....those who bought for retirement...why would they want to sell? U do not talk sense here lah....

[fiat500]

...wah u still q up at bank and waste time there?......they have 4d and toto tehre also what and malaysian food not that far off Sg food...ur families can visit u also....anyway dun tell me u will still visit ur families every day one...they also got their work and other activities...feel like it can drive malaysia car down to Malacca for day trip or hop on HSR to KL....but of course for someone with your mentality...do stay in Sg and continue queing up at bank to pass time when u retire....

U have your views n i have mine.
It would be better n tactful to state your own opinions n avoid using words like "your mentality" n being sarcastic in your remarks ..no point having personal attacks..
Here friendly discussion is in the best interest for everyone here..

[lajia]

Don't need to be too defensive bro...u can choose to bring your passport to visit your friends and families everyday, that doesn't make sense too...that's your choice. I'm not going to dispute that.

I prefer to go downstairs or nearby and have my kopi with my friends with a phone call anytime...

And by the way, even woodland go to JB passing thru the custom would take minimum 30 min when the traffic is fantastic....not to mentioned u need to choose the timing of the day if u know what I mean.

hahaha JB is just 30-and hour drive away...just like driving from Jurong to Punngol not like gotta fly for 6 hours to australia....those who bought for retirement...why would they want to sell? U do not talk sense here lah....