Johor property glut dampens frenzy

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“In Johor alone, there are around 336,000 new private residential units in the pipeline – more than the total number of private homes  in Singapore.” That is what a report in the Insider has highlighted.

This has led to the Singapore government warning buyers about the risks of buying property in Johor.

“Official Malaysian data suggest the Johor housing market is already slowing down … Singaporean buyers, too, are becoming wary,” said a Singapore minister.

Well, we could see the glut in Johor coming a year ago or even earlier.

But the building frenzy is carrying on in Penang as if there is no tomorrow. And with more massive land reclamation in store, much of the new property supply in the pipeline is aimed at the high-end of the market, which could be hit the hardest.

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owc

Watch this recent Singapore Channel 8 TV report on the oversupply of new housing in Iskandar, Johor.
A warning of property bubble.

The program is In Mandarin but most interviews are in English:

gk ong

Demand for the higher-end properties, mostly built by China-based developers, is tapering off. One developer has 45 condominium towers under construction for a total of 9,500 apartment to be ready in 2017, but less than a third have been booked after two years. Guangzhou R&F Properties has sold only half of its 1,400 luxury units while Greenland Group, is planning 2,000 more, the UK Financial Times report said. It said prices in Iskandar have soared to Kuala Lumpur levels, quoting data by its research unit Asean Confidential: from 2012 prices rose to a peak of 25% above the national average,… Read more »

fred

Johor can be home choice of new generation now that the far-sighted Sultan Up hot has called for English medium school. Many Penang parents can opt for Up hot homes when on sale later, can send children to English medium schools. Later upon graduation, can find jobs in Spore by which time the exchange rate can be 3x thanks to 1MDB fiasco.

ajith v

Kamalanathan once claimed that our standard of English is better than that in Singapore. In OECD rankings in Science and Math, Malaysia is ranked 52 out of 76 countries, far behind other Asian countries, namely Singapore (1st), Hong Kong (2nd), South Korea (3rd), Japan and Taiwan (joint 4th). Malaysia is even ranked below Vietnam (12th) and Thailand (47th)!

How can Muhyiddin claim that we have world class education?

iSupercally

Anil ; What has the above 2 comments in anyway related to the topic ?

gk ong

The 2 comments are relevant as many choose to buy homes in Iskandar for the sake of the education of their children, ie. the proximity to Singapore and the International schools at EduCity Iskandar, given the poor standard of local education, with or without the blueprint. If you read too much mainstream media, you will not be able to think critically to understand the controllable and uncontrollable factors and affecting the issue. Anil should not restrict readers into a narrow interpretations of an event. Already our IPTAs have been producing graduates of toeing the line and answering according to ‘model… Read more »

oracle

Lured by cheap property prices and an idyllic lifestyle, Singaporeans are seriously considering retiring across the causeway. Developers are homing in on Singaporeans, with different housing options in the works, including one for Singaporeans by Singaporeans. But the recent increase in the causeway toll and the t-be-imposed RM20/day vehicle charge for Singapore cars maybe a deterrent?

Watch this report on “The JB Retirement Plan”:

JJR

Comparing Penang state to Johor’s vast land mass (1,048 km2 vs19,210 km2) ?
Just take Johor Baru city’s 647 km2 vs Penang Island’s 290 km2 has already 2.2 times over lah ! How about Iskandar’s “total flat lands” of 2,217 km2 ?
In short, it’s silly to compare something beyond reasoning !

rayon

The oversupply of condominiums in JB is due the entry of China developers…. The bubble will begin from south.

The warning from the Singapore government should be taken seriously.

fred

With Jibbie becoming a liability to the people, a possible new administration can result in swing in property prices as well. Hold on with your purchases as Yang cannot deny new market forces to create new landscape for the housing scenarios in the country.

fred

Likewise can happen to high end Penang condos going for fire sale due to credit crunch, cash flow and many other factors. I am waiting for the moment won’t you?

Black Widow

Mainstream Papers help desperate Penang developers before fire sale ?
We have The Star Property Fair; and later this month Kwang Hwa Jit Poh’s Property sale at Gurney Paragon.
Go check out and take note of current prices, and then can get possible 30% discount by the time of fire sale !

gk ong

We must be thankful to the warning from Singa government, else everyone is misled by the endless property roadshows and print ads on the local mainstream papers, very often implying that better buy now as the property prices will continue to rise.