Thursday, 14 November 2013
Is Iskandar Malaysia overpriced?
Every conversation about Iskandar Malaysia (IM) revolves around three related topics. One, the launch price for residential properties and land prices have doubled in the past two years. Two, the huge supply of completed residential units that will come into the market in the next two to four years from projects launched in the past two years. And lastly, what is the impact of the cooling measures announced in the recent Budget and other specific measures contemplated by the State Government.
Although we have also seen a major push to create economic activities and jobs, these new developments cannot rely on domestic take up alone.
Can the current prices and demand for properties in IM be sustained? We believe it depends on the following two questions. 1) Is the IM growth story secular or cyclical? and 2) Can IM be an integral suburb of Singapore? Will workers in Singapore (Singaporeans or Malaysians) make IM their home?
Read the answer to the question in The Edge this week.