Despite the possible residential supply glut in Iskandar Malaysia and the negative publicity hounding some Chinese projects there, another China-based developer is making plans to venture into the region.
Henan-based Weiye Holdings is courting partners for potential joint ventures in Singapore and the Iskandar region in the next six months, according to its Group Chairman Zhang Wei.
“We have existing customers who may be keen to invest in Malaysian homes because of its international residency scheme,” he said.
Zhang was referring to the country’s ‘My Second Home’ scheme, whereby foreigners are permitted to reside in Malaysia through a multiple-entry social visit pass, which is initially valid for 10 years but is renewable.
“The demand we are seeing now from mainland Chinese to buy homes in Malaysia is just the tip of the iceberg,” Zhang noted, forecasting that investment yields will remain positive despite rising home prices in Iskandar. However, if prices climb too high, the local authorities may impose more property cooling measures.
Nevertheless, Iskandar remains a top property investment destination due to its proximity to Singapore, just like how Shenzhen in China benefited from nearby Hong Kong, added Zhang.
Singapore-listed Weiye Holdings is known for its residential and commercial projects in China’s Henan province and Hainan Island. As of March 2014, it has six properties under construction with a combined net saleable floor area (NSFA) of about 627,038 sqm. So far, it has also completed 13 developments with a total NSFA of around 955,688 sqm.
Farah Wahida, Editor of PropertyGuru Malaysia, wrote this story. To contact her about this or other stories email farahwahida@propertyguru.com.my
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