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Did You Miss? 2014 Most Popular (TOP 5) Iskandar Malaysia Property Investment

Last Updated August 27, 2021

Reading Time 5 minutes

 

MySgProp: 2014 Most Popular (TOP 5) Iskandar Malaysia Property Investment

By MySgProp.com, 16-Jan-2015

In 2014, Iskandar Malaysia Property Market is much quite compare to year 2013, mainly due to 3 new regulations/ cooling measures imposed by Malaysia Government to curb the speculation in property market

  • Since Malaysia 2014 Budget, the RGPT (Real Property Gain Tax) had increased. For foreigners, first 5 years 30%, and 5% after 5 years. Clock start from SPA date. If you’re someone follow the property market long enough, you should aware Capital Gain Tax of 30% is not new in Malaysia, it had been there sometime year 2004 (if I remember correctly). It was reduced after that due to slum market. Interestingly, the increase of Property Gain Tax had indirectly encourage investors to purchase new launches instead of resale, because the new launches easily takes few years to complete. So the waiting time for minimum Gain Tax is significantly shorten.
  • Starting May, 2014, the Price Threshold, i.e minimum purchase price for foreigners had also increased from RM500K to RM1 mil (Johor). All new projects are subjected to new rulings, unless special approval granted by State Government. Old projects which had obtained the building approval are also exempted from the new rulings.
  • DIBS (Developer Interest Bearing Scheme) Abolishment, or we called it IAS (Interest Absorption Scheme) in Singapore. Developers is no longer allowed to offer DIBS scheme to the buyers and buyers have to pay the interest incurred by Bank Loan. IAS in Singapore had been stopped quite a long time ago. This had effectively filtered out the speculators & small investors, especially those who do not have a strong cash flow/ holding power.

Personally, I see the cooling measures is a good move to ensure the property market stay resilient. Iskandar is still one of the very good hotspot and yet low price among Asia’s major cities. However, there are more than 100 projects currently actively market in Iskandar (although some are actually out of Iskandar region but developer still claimed as it is), which one should you go for? “Location within location” is extremely important when come to property investment, just like a shoplots in same shopping mall could fetch different pricing.

johor-bahru-areas

Personally, I would prefer the following locations for investment wise, :

  • Medini (Iskandar Zone B Special one, where the Legoland and Pinewood Studio located, no foreigner’s restriction, no capital gain tax): about RM850 psf for leasehold 129 years (129 is the longest leasehold, no freehold land in Medini).
  • Bukit Indah (Iskandar Zone B, the only matured township in Iskandar Zone B), excellent amenities & public transportation to/from Singapore. About RM750 psf freehold
  • Puteri Harbour (most expensive area in Iskandar, price at about RM1400 psf) – Luxury, Marina/ Sea View. Just next to Medini, cater for high-end expats/ foreigners.
  • Johor Bahru CBD (gateway to Singapore via Woodlands Custom, CBD Retransformation on gong, Singapore Johor MRT-RTS railway station completion due in 2018)

The following are the Top 5 Most Popular Iskandar’s projects (MySgProp.com) for the year 2014. Did you miss?

2014 Market Trend Summary:

  • Affordability is still the main factor influencing the buying decisions. 3 out of the Top 5 projects below are having super attractive sales package and all of them are having the approval from state government to sell below RM 1 mil. Home Buyers are also squeeze the budget or chose the locations that further away/ out of Iskandar’s Prime Areas and to compromise with security levels. This includes Permas Jaya, Seri Alam, Senai, Johor Jaya & Mount Austin, which are also the matured and established area, populated by locals.
  • Current market sentiments is mainly concern about the Oversupply issue in CBD and also Danga Bay, where the China Developers building mega projects. About RM1,000 psf. However, the sales is still moving in a fast pace. Danga Bay mainly because of it’s nice coastal view and unstop marketing attempts by Developers. R&F was experienced slow sales in the beginning, but now is also moving fast with the Special Approval from State Government to sell below RM1 mil to foreigners.
  • Staring April 2015, the 6% GST will be implemented in Malaysia. Although residential property is not affected, however developer will have to factor in the extra cost into the selling price. Many foreigners buyers are buying to avoid GST effect next year, and many local (Malaysian) buyers are holding the handbrake to purchase and adopting “Wait and See” strategy. GST — It is a very new thing to most of the Malaysians.
  • Cash rich investors are investing into Commercial/ Industrial Property. The supply of Commercial and Industrial are relatively super low in Iskandar. The 2 out of Top 5 projects are from Commercial and Industrial, both with >90% Sold on the first week of launching. This kind of overwhelming response is not seen on any residential projects in 2014. Although Commercial/ Indusrial seems to be more lucrative and better returns, but the cash upfront is much higher than Residential Project due to higher price quantum and less “discount/rebate”.

1. D’Inspire Residence @ Nusa Bestari


2. Harvest Green (Sime Darby) @Pasir Gudang Industrial Park


3. Nusajaya Square Phase 2 @ SiLC


4. R&F Princess Cove at Tg. Puteri, Johor


5.【碧桂园金海湾】Country Garden @Danga Bay

 

By MySgProp.com, 16-Jan-2015

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