JOHOR BARU: Property developers in Johor must be ready to face tougher times within
the next six to 12 months in view of the uncertainties in the global economic
growth.
Johor Real Estate and Housing
Developers Association (Rehda) branch chairman Koh Moo Hing said they should be
optimistically cautious as the outlook was not expected to be rosy.
“Hopefully, our members are well
prepared to brace the hard times and avoid from being overly ambitious,'' he
told StarBiz.
Koh said property price in Johor,
especially in Iskandar Malaysia, would also be increased by at least 5% in
months to come as the hike was unavoidable.
He said with the prices of
building materials, especially cement, likely to go up and shortage of workers,
developers would have not much choice but to pass the cost to consumers.
Koh advised developers to
carefully plan when launching a project this year and next and go for products
that could still sell in an unfavourable property market.
“Although there will be a hike in
prices of properties in Iskandar Malaysia, it is still not as high as those in
the Klang Valley and Penang,'' he said, adding that developers could expect
demand for properties in Iskandar Malaysia to remain “positive” especially from
time house buyers and upgraders.
He said they would not want to
delay their purchase as many of them had anticipated that prices of residential
properties would continue to increase.
Koh said five years ago, the
selling price for a double-storey intermediate lot link house was RM300,000 but
now it was starting from RM450,000.
Another factor that contributed
to the hike was land prices which had been on the upward trend since the
inception of Iskandar Malaysia about six years ago, he said, adding: “For
instance, industrial land was sold for RM20 per sq ft five years ago and now
the asking price is between RM25 and RM35.''
He said for residential projects,
the prices of land varied from location to location and depending on the type
of projects developers were planning.
On that note, Koh said many
developers in Iskandar were now going for high-density living to fully utilise
or maximise the cost of buying the land. “There is a shift in demand for
high-rise apartment living in Iskandar from younger house buyers in their late
20s to early 30s,'' he said.
Koh said unlike the older
generation who still preferred landed properties, the younger generation were
more receptive to apartment living because of the safety and security issues as
well as easy maintenance for their abode.
He said the popular locations
included Skudai, Nusajaya, Taman Sutera Utama and IOI Kempas Utama, Kempas with
a selling price of RM400 to RM450 per sq ft for a 1,200 sq ft apartment unit.
Koh said many parents whose
children were already living on the own also had downsized from landed
properties to modest apartments.
“Most of them choose to stay
within the same block but with some privacy,'' he said.
KSL Holdings Bhd executive
director Ku Hwa Seng said the company did not have much choice but to follow
other developers by raising prices of their houses.
“We can expect a slowdown in
property demand in Iskandar Malay-sia next year if prices of building materials
continue to rise,'' he said.
Ku said three to four years ago,
the average selling price for a double-storey terrace house in Iskandar
Malaysia was RM250,000 now it was RM400,000.
He said the land prices had also
rocketed from RM6 to RM7 per sq ft five to six years ago to RM40 to RM100 per
sq ft now due to the progress taking place in Iskandar Malaysia.
Ku said with the possible hike in
prices of properties here, banks would be more stringent when approving loans.
He noticed more property buyers
here, especially the younger generation, were going for high-rise living in the
last three to five years. On that note, the company would be launching its
D'Inspire Apartment @ Nusa Bestari by year-end with the gross development value
of RM250mil.
Ku said the project would
comprise 580 units in two 28-storey apartment block towers, and each unit would
be priced from RM200,000 to RM600,000.
Country View Bhd senior marketing
manager Andrew Tan said the company was still upbeat on Iskandar Malaysia's
property outlook despite tougher times ahead.
He said with the region
progressing well since its inception about six years ago, it had sent a strong
signal that the country's first economic growth corridor was moving in the
right direction.
“Iskandar Malaysia is not just
about Johor, it is a national pride and the Government is fully committed to
ensure it will take place as planned,'' added Tan.
Under the Comprehensive
Deve-lopment Plan (2006-2025), Iskandar Malaysia will be transformed into an
international metropolis.
Tan said the company's 756 units
of five-room double-storey link houses at Nusa Sentral in Nusajaya launched in
phases since 2010 had been sold out.
He said with the improvement in
connectivity and accessibility within Iskandar, more buyers were looking at
areas outside Johor Baru.
Tan said it would be launching
the phase four of the project comprising double-storey link houses within the
next three months.
“We are confident that there are
buyers for our products despite an increase in price,'' he said.
Nusa Sentral is located along
Jalan Gelang Patah-Lima Kedia on a 121.40ha site and the project could keep the
company busy for the next seven years.(ENDS)
The Star
Business & Investment Opportunities
YourVietnamExpert is a division of Saigon Business Corporation Pte Ltd, Incorporated in Singapore since 1994. As Your Business Companion, we propose a range of services in Strategy, Investment and Management, focusing Healthcare and Life Science with expertise in ASEAN. We also propose Higher Education, as a bridge between educational structures and industries, by supporting international programmes. Many thanks for visiting www.yourvietnamexpert.com and/or contacting us at contact@yourvietnamexpert.com
No comments:
Post a Comment