Investors remain bullish over long-term prospects for Iskandar Malaysia, but some have turned cautious on the sustainability of growing property prices in view of the ample supply in the next couple of years.
According to Maybank-IB, aggressive launches, particularly of high-rise condominiums, led many investors to take a cautious stance, following a recent visit at the economic zone with fund managers.
Johor developer Simon Heng revealed that for last year alone, the local council approved 60 to 70 apartment projects compared to only 20 a few years back. Additionally, about 13,500 condo units are expected to come to the market in the next three to four years.
However, demand for property is still strong, with property prices continuing its uphill climb, noted Maybank-IB analyst Wong Wei Sum.
For instance, Afiniti Residences (pictured) in Nusajaya saw robust interest among buyers with 1,570 online applications for its 147 units priced at around RM848 (S$337) psf.
Wong believes that developers with a unique position would gain the upper hand once competition within the region intensifies, while those with a vast array of properties are better placed to ride the waves of cycle invariably hitting the sector.
Nikki De Guzman, Junior Reporter at PropertyGuru, wrote this story. To contact her about this or other stories email nikki@propertyguru.com.sg
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