View Full Version : Iskandar property prices shoot up
http://www.straitstimes.com/archive/sunday/premium/news/story/iskandar-property-prices-shoot-20130317
Iskandar property prices shoot up
Agents see stronger buyer interest, rising capital values in Malaysia's economic corridor
Published on Mar 17, 2013
Kuala Lumpur - The last six months have seen a tremendous spike in property prices in Iskandar Malaysia, one of the country's most successful economic corridors, with interest and imagination fired by warming of government ties between Singapore and Malaysia and the completion of several infrastructure projects.
While property agents from both sides of the Causeway say they have never seen such a steep climb in interest in the last two years, it is the last six months that have taken their breath away. Everything, from price to interest from foreigners, has been strastospheric.
How much of this is hype and how much of it is for real?
Although there have been occasions when agents have been "overly optimistic" and exaggerated sales numbers, Jones Lang LaSalle head of residential project sales David Neubronner says they are seeing more enquiries in recent months, stronger buying interest and rising capital values.
Show houses and apartments in Iskandar are busy even on weekdays. Good Malaysian property launches in Singapore draw in full houses, says the Singapore-based Mr Neubronner.
Robust demand is evident at popular developments such as Senibong Cove and Straits View Residences where both have sold out all their previously released landed properties.
On the residential front, Nusajaya is hogging the limelight with its slew of initiatives and developments coming on board. Of particular interest, says Mr Neubronner, is the Puteri Harbour scheme which boasts luxury waterfront villas, apartments, serviced residences, hotels and commercial developments.
Other attractions include the new international schools in Nusajaya, like the world-renowned Marlborough College. This has caught the attention of the expatriate community in Singapore and many are making enquiries, says Mr Neubronner.
Other hot areas are waterfront homes in Danga Bay and Permas Jaya.
CB Richard Ellis (Johor) director Wee Soon Chit compares today's prices with last June's and as far back as 2006, when Iskandar was first launched.
Today, vacant bungalow lots in Ledang Heights are priced at between RM100 and RM120 (S$40 and S$48) per sq ft. Last June, they were RM60 to RM80 per sq ft; in 2006, they were RM25 to RM30 per sq ft.
"There seems to be very strong interest and an element of speculation," says Mr Wee, adding that he has never seen such a dizzying spike in his 17 years in the property market. "Property prices were rather stagnant from 1998 to around 2006."
As for the industrial sector of the market, prices at the UEM Group's Southern Industrial Logistics cluster in Nusajaya were hovering at RM25 per sq ft in 2006. By last June, they had doubled to between RM40 and RM50 per sq ft and today, lots are transacting at prices as high as RM75 per sq ft, said Mr Wee.
As for commercial land in Johor Baru, known as the old town, Mr Wee says the latest transaction for a yet-to-be-converted parcel fronting Jalan Abdullah Tahir was RM380 per sq ft.
In Nusajaya, at least 60 per cent of buyers of residential properties are foreigners compared with 40 per cent in Johor Baru. Prices of high-rise units launched in 2006-07 have moved from RM350 psf then to RM1,200 psf now.
Mr Wee says it is not really "an apple to apple comparison" because they are now seeing better finishes and designs.
The Star/Asia News Network
starrynight
19-03-13, 18:35
I know this has been discussed before but realistically speaking, when one wants to sell, is there ready buyer demand for resale pptys?
http://www.straitstimes.com/archive/sunday/premium/news/story/iskandar-property-prices-shoot-20130317
Iskandar property prices shoot up
Agents see stronger buyer interest, rising capital values in Malaysia's economic corridor
Published on Mar 17, 2013
Kuala Lumpur - The last six months have seen a tremendous spike in property prices in Iskandar Malaysia, one of the country's most successful economic corridors, with interest and imagination fired by warming of government ties between Singapore and Malaysia and the completion of several infrastructure projects.
While property agents from both sides of the Causeway say they have never seen such a steep climb in interest in the last two years, it is the last six months that have taken their breath away. Everything, from price to interest from foreigners, has been strastospheric.
How much of this is hype and how much of it is for real?
Although there have been occasions when agents have been "overly optimistic" and exaggerated sales numbers, Jones Lang LaSalle head of residential project sales David Neubronner says they are seeing more enquiries in recent months, stronger buying interest and rising capital values.
Show houses and apartments in Iskandar are busy even on weekdays. Good Malaysian property launches in Singapore draw in full houses, says the Singapore-based Mr Neubronner.
Robust demand is evident at popular developments such as Senibong Cove and Straits View Residences where both have sold out all their previously released landed properties.
On the residential front, Nusajaya is hogging the limelight with its slew of initiatives and developments coming on board. Of particular interest, says Mr Neubronner, is the Puteri Harbour scheme which boasts luxury waterfront villas, apartments, serviced residences, hotels and commercial developments.
Other attractions include the new international schools in Nusajaya, like the world-renowned Marlborough College. This has caught the attention of the expatriate community in Singapore and many are making enquiries, says Mr Neubronner.
Other hot areas are waterfront homes in Danga Bay and Permas Jaya.
CB Richard Ellis (Johor) director Wee Soon Chit compares today's prices with last June's and as far back as 2006, when Iskandar was first launched.
Today, vacant bungalow lots in Ledang Heights are priced at between RM100 and RM120 (S$40 and S$48) per sq ft. Last June, they were RM60 to RM80 per sq ft; in 2006, they were RM25 to RM30 per sq ft.
"There seems to be very strong interest and an element of speculation," says Mr Wee, adding that he has never seen such a dizzying spike in his 17 years in the property market. "Property prices were rather stagnant from 1998 to around 2006."
As for the industrial sector of the market, prices at the UEM Group's Southern Industrial Logistics cluster in Nusajaya were hovering at RM25 per sq ft in 2006. By last June, they had doubled to between RM40 and RM50 per sq ft and today, lots are transacting at prices as high as RM75 per sq ft, said Mr Wee.
As for commercial land in Johor Baru, known as the old town, Mr Wee says the latest transaction for a yet-to-be-converted parcel fronting Jalan Abdullah Tahir was RM380 per sq ft.
In Nusajaya, at least 60 per cent of buyers of residential properties are foreigners compared with 40 per cent in Johor Baru. Prices of high-rise units launched in 2006-07 have moved from RM350 psf then to RM1,200 psf now.
Mr Wee says it is not really "an apple to apple comparison" because they are now seeing better finishes and designs.
The Star/Asia News Network
If this forum still around till 2030, we should able to see how the Iskandar Malaysia property price raise , crash , raise next 17 yrs :D
I still cannot believe what had offer to us -
1. A sea view , freehold 1000sqft unit at S$500K
2. A landed , green view, but near malls, edu , 3600sqft at S$300K
About $500psf VS $100psf,
What a big differ!
I know this has been discussed before but realistically speaking, when one wants to sell, is there ready buyer demand for resale pptys?
developer can offer DPS, buyer only pay 10%.
some developer also offer cash back, so in effect, buyer pay 0%. LTV 100%.
If price drop, I walk away, no cash on table.
what can secondary seller offer? i need to take bank loan.
if i am speculator, why should I buy in secondary market? LTV 70% if not mistaken.
Singaporean all are carrot heads. luv to be chopped.
thomaspaine
19-03-13, 22:56
I know this has been discussed before but realistically speaking, when one wants to sell, is there ready buyer demand for resale pptys?
I have asked many of my Malaysian friends about buying iskander and ALL advised me to stay away.
I just had to give iskander a pass ......
buttercarp
19-03-13, 23:35
If buy for own stay or holiday home, then go ahead.
If buy in hope to rent out then who is going to rent?
Cos there are so many projects coming out.
The locals there can buy the cheaper ones along the fringe and let out at a much cheaper rate.
Me, i am going to rent in ten years time. my budget is RM1,500 only.:D
I have seem quite a lot of condo in KL run down after few years due to poor maintenance by the property management. The property outlook is worse than HDB after few years
Landed property seem a better choice as you do your own maintenance
thomaspaine
20-03-13, 13:19
I have seem quite a lot of condo in KL run down after few years due to poor maintenance by the property management. The property outlook is worse than HDB after few years
Landed property seem a better choice as you do your own maintenance
If I was gonna buy ...I would buy condos for sure...
LANDED in JOHORE ? NO WAY LA .... even if gated community ...I have heard too many kelong stories from KL ...the robbers collaborate with your security guards !
I have been reading up and checking up...... the idea of having bigger space and nice views is nice but I think alot of these units will be empty after TOP.
Just checked with my Malaysian staff and he mentioned that near pasir gudang area alot of service apartments, i.e. condominiums were built but quite vacant.....
Rental yields aren't fantastic and I wonder how the locals afford if the units are beyond their reach for both rental and purchase....
Artist impression and driving around danga bay feels good but not too sure how the returns will be.....
I think it's purely hype now..... sudden rush into Iskandar property for this year and people will only realise the developments won't happen so fast then the dip will happen before going up once the industries and tourism sector really matures.....
To buy for good rental yield and sell within 5 years for capital gain might be difficult. It is even worst for investors who take up loan with mortgage interest of 4.25%. It really depends on investors' objectives. May be more viable for retired folks.
I have been reading up and checking up...... the idea of having bigger space and nice views is nice but I think alot of these units will be empty after TOP.
Just checked with my Malaysian staff and he mentioned that near pasir gudang area alot of service apartments, i.e. condominiums were built but quite vacant.....
Rental yields aren't fantastic and I wonder how the locals afford if the units are beyond their reach for both rental and purchase....
Artist impression and driving around danga bay feels good but not too sure how the returns will be.....
I think it's purely hype now..... sudden rush into Iskandar property for this year and people will only realise the developments won't happen so fast then the dip will happen before going up once the industries and tourism sector really matures.....
To buy for good rental yield and sell within 5 years for capital gain might be difficult. It is even worst for investors who take up loan with mortgage interest of 4.25%. It really depends on investors' objectives. May be more viable for retired folks.
like
it is a retirement home, all else is BS.:D
like
it is a retirement home, all else is BS.:D
When i am retired, convenience and safety will be my priorities. In fact, i am looking to shift to a smaller unit.
Capland at dangabay maybe worth looking at. Anyone knows whether it is FH or 99?
Get a yacht and berth next to your unit. :D
When i am retired, convenience and safety will be my priorities. In fact, i am looking to shift to a smaller unit.
Capland at dangabay maybe worth looking at. Anyone knows whether it is FH or 99?
Get a yacht and berth next to your unit. :D
isn't that akin to putting a shining beacon that says "come rob me"??
Then get a sampan. :D
isn't that akin to putting a shining beacon that says "come rob me"??
Then get a sampan. :D
Or hire a bodyguard. Many wealthy people in Malaysia have a few bodyguards. I even heard of a businessman who carries a handgun. And not, he is not gangster but head of a listed company.
Then get a sampan. :D
and die from exhaustion?? dayung sampan, dayung dayung sampan
Sampan with a motor? Even better sampan can be transformed to ??
and die from exhaustion?? dayung sampan, dayung dayung sampan
Sampan with a motor? Even better sampan can be transformed to ??
transformed to.......megatron?? :D :D
BUY BUY !!
http://www.propertyguru.com.my/en/property-news/2013/3/8549/For%20sale:%20Condo%20units%20at%20The%20Raffles%20Suites
transformed to.......megatron?? :D :D
what an insult to megatron, lol.
but back to the topic, it's a good time to be a developer in johor right now.
i have a friend who bought something in iskandar, his whole street of units are almost all owned singaporeans. and i haven't heard of a ready and resilient resale market as yet.
starrynight
23-03-13, 10:24
Same here - my acquaintance has been posting photos of his Medini ppty, and 80% of the cars in the photos have Singapore licence plates. Half are "expensive" cars like Audi A5s, Jaguar XFs, etc.
what an insult to megatron, lol.
but back to the topic, it's a good time to be a developer in johor right now.
i have a friend who bought something in iskandar, his whole street of units are almost all owned singaporeans. and i haven't heard of a ready and resilient resale market as yet.
put the other way, if you aren't planning for an immediate retirement and there is a resale at Ringgit850k vs a developer selling a brand new unit at Ringgit1mio. Which will you buy?
if one thinks that they would buy it at $850k, then good for them, I think there are lot of units to choose from.
Malaysia developers capitalising on the goods news and market at orchard hotel this weekend organised by propertyguru. So many countries are tapping on people in singapore. :simmering:
i personally wont touch iskanda with the 10 meter stick.
Just a case study for your analysis. A person with multiple properties will have to pay 10% absd $100,000 for a $1million and not economical to sell since there is seller's stamp duty. Is it wise to invest the $100,000 into this area w/o taking loan and as holiday home?
i personally wont touch iskanda with the 10 meter stick.
Care to share why? Good to hear differ opinion
i personally wont touch iskanda with the 10 meter stick.
new2mondrian
29-03-13, 19:26
From the perspective of one who is vested in Iskandar, my view is that over the next 10-15 years, Iskandar will be transformed, regardless of the outcome of the upcoming Malaysian elections.
Firstly, connectivity with Singapore will improve through MRT links. Secondly, the Johor sultan owns huge tracts of land around the Iskandar region, and therefore there are strong vested interests to ensure its development. Thirdly, Singapore faces constraints on her land resources, which means growth of more land intensive activities will have to take place in Iskandar. The foreign direct investment (FDI) momentum into Isakandar is gaining traction. For 2011. RM5.7B in FDI flows was captured in Iskandar. With the exemption of 30% Bumiputra ownership for foreign companies based in Iskandar (under IDR scheme), the region will grow with time to compete with Singapore. The following link gives pretty good insights on the attractiveness of the Iskandar region. The Malaysians are definitely catching up in terms of sophistication. http://www.iskandarmalaysia.com.my/pdf/brochures/Investing_in_Iskandar.pdf. And lastly, economic and social infrastructure is leveling up. All major banks (Stanchart, HSBC, Hong Leong, UOB) are in Iskandar. Healthcare systems are coming on stream (parkway group, raffles medical group, Thomson medical are all establishing presence in Iskandar). Even the world's largest theme park operator, Six Flags, had announced a 1.5B theme park in Iskandar early this year, doubling the size of legoland.
Depending on time horizon, Iskandar has promise. But if one is risk averse, no harm maintaining a holiday home over there as a form of consumption. After all, SGD 300k can buy a good size brand new landed over there, whereas the same amount probably pays for the ABSD over here. A&A and devt charges in Singapore is closer to half a million these days. Everything is incredibly expensive, and in my perspective, that's far riskier.
Glad to hear differing constructive views. :)
Johor Sultan owns a lot of lands, so? Make him richer u mean? :)
you are rite, connectivities between Sgp and Iskandar will for sure improve and become better, u know why? So that ppl go work in the morning and come back to Sgp home at ease....
Next, FDI increase in Iskandar, why? because developers are happily selling so they invest and because as you also said, Sgp has land & labour constraint so most labour intensive manufacturing will be there. So, most ppl there are labors rite? And ppl like those middle management, directors, or even presidents, they go home, SGP is where the home is...:) So who will stay there? think again, out of 10, maybe 2 complains that Sgp is expensive and they want to stay there (RM4 for a small plate of wanton noodle is not cheap either, and u may need two plates...:)). But don't forget, plenty of lands, plenty of developers. Maybe in 15 yrs time, they will still be launching new residential projects. If thats the case, so hows the resale market? I dont think anybody will have very high confidence to say resale market will fly....I buy 300K now maybe 15yrs later i can sell 450K?? minus the exchange loses, u make??
in 2000, i think S$1 is about RM2, now 2013 is about S$2.5, so whats the chance of S$1 to RM3.5 in future?
it is because Sgpean find 300K cheap and that motivate developers to built more and more...it is this mentality that kills the market in the long run.
no offense, this is my alternative view. :2cents:
From the perspective of one who is vested in Iskandar, my view is that over the next 10-15 years, Iskandar will be transformed, regardless of the outcome of the upcoming Malaysian elections.
Firstly, connectivity with Singapore will improve through MRT links. Secondly, the Johor sultan owns huge tracts of land around the Iskandar region, and therefore there are strong vested interests to ensure its development. Thirdly, Singapore faces constraints on her land resources, which means growth of more land intensive activities will have to take place in Iskandar. The foreign direct investment (FDI) momentum into Isakandar is gaining traction. For 2011. RM5.7B in FDI flows was captured in Iskandar. With the exemption of 30% Bumiputra ownership for foreign companies based in Iskandar (under IDR scheme), the region will grow with time to compete with Singapore. The following link gives pretty good insights on the attractiveness of the Iskandar region. The Malaysians are definitely catching up in terms of sophistication. http://www.iskandarmalaysia.com.my/pdf/brochures/Investing_in_Iskandar.pdf. And lastly, economic and social infrastructure is leveling up. All major banks (Stanchart, HSBC, Hong Leong, UOB) are in Iskandar. Healthcare systems are coming on stream (parkway group, raffles medical group, Thomson medical are all establishing presence in Iskandar). Even the world's largest theme park operator, Six Flags, had announced a 1.5B theme park in Iskandar early this year, doubling the size of legoland.
Depending on time horizon, Iskandar has promise. But if one is risk averse, no harm maintaining a holiday home over there as a form of consumption. After all, SGD 300k can buy a good size brand new landed over there, whereas the same amount probably pays for the ABSD over here. A&A and devt charges in Singapore is closer to half a million these days. Everything is incredibly expensive, and in my perspective, that's far riskier.
Glad to hear differing constructive views. :)
What happen when UMNO say all property own by Singaporean need to return back to Malaysia?
http://www.mas.gov.sg/news-and-publications/parliamentary-replies/1998/dpm-lee-s-reply-to-parliamentary-question-on-clob--12-oct-1998.aspx
2 The government cannot protect investors from such risks. Investors have to keep their eyes open and judge for themselves whether the returns are adequate to justify the risks.
anything can happen, overnight CLOB shares were not recognized....remember?
What happen when UMNO say all property own by Singaporean need to return back to Malaysia?
http://www.mas.gov.sg/news-and-publications/parliamentary-replies/1998/dpm-lee-s-reply-to-parliamentary-question-on-clob--12-oct-1998.aspx
There is always a risk in any purchase. Juz b happy w ur own decision. Singapore is getting too expensive to retire comfortably for me. I feel tt there r hidden forces at work to inflate cost of living. The returns from taxes or national investment is not really felt by e average person in e street. Something is not right. I could be wrong but I have faith in my thoughts n decision r right. So far on checking operating costs, I'm right.
"e average person in e street" is like a frog in a boiling water. If you put a frog in the water and slowly increase the heat you can cook the frog.
new2mondrian
29-03-13, 22:15
Thanks folks. Yeah the CLOBbered saga was certainly part of our collective memories. But I offer a contrarian view. Malaysia's political scene is actually more stable than Singapore's, and so is its economy over the longer term. Malaysia went through significant political changes over the past 40 years, and it still functions well as an economy. Policy wise, it went through various policy reversals and uncertainty, but its GDP still grows well year on year, fueled by domestic demand and reinvestment. Can we say the same of Singapore? Honestly I am not so sure. But as a Singaporean, and being heavily vested here, my wish of course is that Singapore would continue to prosper and enjoy political and economic stability in the years to come. :)
With our recent policies, we r not that stable. More populist now. Wait till u see outcome of SG conversation. When a gov listen to ppl too much, it cannot rule effectively. And efficiency effectiveness are our USP.
If UMNO loses power, you will see more unheavel (under the table)! :doh:
Iskandar is the brainchild of UMNO, what will happen then? :scared-1:
Thanks folks. Yeah the CLOBbered saga was certainly part of our collective memories. But I offer a contrarian view. Malaysia's political scene is actually more stable than Singapore's, and so is its economy over the longer term. Malaysia went through significant political changes over the past 40 years, and it still functions well as an economy. Policy wise, it went through various policy reversals and uncertainty, but its GDP still grows well year on year, fueled by domestic demand and reinvestment. Can we say the same of Singapore? Honestly I am not so sure. But as a Singaporean, and being heavily vested here, my wish of course is that Singapore would continue to prosper and enjoy political and economic stability in the years to come. :)
If UMNO loses power, you will see more unheavel (under the table)! :doh:
Iskandar is the brainchild of UMNO, what will happen then? :scared-1:
Selling land to foreigners. LOL
If UMNO loses power, you will see more unheavel (under the table)! :doh:
Iskandar is the brainchild of UMNO, what will happen then? :scared-1:
Prices will go higher. Temasek's new launches will form the price floor. Prices will almost never go back to 2012 level.
A fresh ground report for you based on my JB trip yesterday: many Singaporeans are scrambling for a landed property in Iskandar now.
Prices will go higher. Temasek's new launches will form the price floor. Prices will almost never go back to 2012 level.
A fresh ground report for you based on my JB trip yesterday: many Singaporeans are scrambling for a landed property in Iskandar now.
Hi..could you share how should I go about it for a start if I am keen to get a landed/private property in JB. TIA.
Hi..could you share how should I go about it for a start if I am keen to get a landed/private property in JB. TIA.
Mount Sinai is better choice for u.
Mount Sinai is better choice for u.
Yes. you are so right.
Prices will go higher. Temasek's new launches will form the price floor. Prices will almost never go back to 2012 level.
A fresh ground report for you based on my JB trip yesterday: many Singaporeans are scrambling for a landed property in Iskandar now.
Well Najib! Might as well sell the whole iskandar to Singapore.
Who knows? Maybe the SAF is planning where to put the bases in Iskandar liao.
LOL
Prices will go higher. Temasek's new launches will form the price floor. Prices will almost never go back to 2012 level.
A fresh ground report for you based on my JB trip yesterday: many Singaporeans are scrambling for a landed property in Iskandar now.
alamak... then can expect jam to get much worse:doh:
propertychap
30-03-13, 10:06
What about the nusantara prima area beside silc? Landed good there?
....I buy 300K now maybe 15yrs later i can sell 450K?? minus the exchange loses, u make??
...
no offense, this is my alternative view. :2cents:
Aiyo.. why need to worry too much on a 300k house whether can sell 450k.. or even sell at same price 300k after 15 yrs..
You just ask MR B.. he rented hdb 3-rm for 15-yrs.. already costed him 300k.. all goes down the drain & still dun have a house on his own.
At least yours is a F'hold 300k house.. dun make profit also ok lah.. free stay for 15-yrs leh.. No joke lor.. still no enough just stay for 30-yrs lor.. :D
The 300k terrace house in Iskandar.. a similar one in SIN will cost you 2.3-2.5m..
But if you own a 2.3-2.5m one in S'pore then you better be more worry.. cos when there is a major correction.. easy drop 20-30% which is 400k-700k..
No offense.. just my view :)
What? you follow Temasek? heehee?! :doh:
Prices will go higher. Temasek's new launches will form the price floor. Prices will almost never go back to 2012 level.
A fresh ground report for you based on my JB trip yesterday: many Singaporeans are scrambling for a landed property in Iskandar now.
There seems to be a differing views on the investment in iskandar which makes investment decision challenging and exciting too. This is probably why only those with calculated foresight and some luck make $$$.:D
new2mondrian
30-03-13, 11:21
Thanks for all the views! As long as they are constructive, they provide good insights that also shape my subsequent investment decisions. :)
But I am a contrarian by nature. I like to buy when I see early signs of potential, and when the tsunami of people are not buying. In 2007/2008, Potong Pasir and woodleigh was launching at $500-$650psf for the freehold condos. The whole world then felt that the cemeteries are there (though exhumation was confirmed), and no one was keen to buy. Today everyone is rushing in for a piece of the 99-year leasehold action for $1300-$1400psf. The same story repeats itself at Pasir panjang area. In 2010, the older condos in that area were asking for $700psf for freehold ones. As the one north area develops, there is similar upside. But is there similar upside at $1500-1600psf? I am not so sure.
I see Iskandar differently though. There is upside for the landed, especially those asking in the region of S$100psf. But there are risks too. But with all investments, I always look at the downside together with the upside. Always hedge the downside while looking at the potential upside. I am not sure if there is any upside (that's why the place is for self stay and not investment at this point), but the downside risks are pretty small in the whole scheme of things. Malaysian developers are getting increasingly sophisticated as well. They are now building the iskandar landed to Singapore's standards, and the unit comes partially furnished with system 7 Mitsubishi air conditioning, 80by80 homogeneous tiles for all rooms, loft living for the bedrooms, fibre optic Internet connection and ensuite bathrooms for all bedrooms. Simply recreating the same in Singapore would have entailed an all in investment of over $3m. I am not sure if the risks are indeed lower in sgp, so here's my two cents. But from a pure investment standpoint, the jury is still mixed, and I am not wholly convinced that it is an ideal investment choice given the lack of rental demand.
What? you follow Temasek? heehee?! :doh:
A little bit but mainly because Singapore property party was over in 2012. I was also looking for some ways to hedge against inflation and have a landed property in Iskandar as a holiday or retirement home.
Now that Temasek has moved into Iskandar officially, it will provide insurance to me: it's land price alone at Danga Bay is significantly more than the prices I paid for my two JB properties at prime locations in terms of built-up psf. Its built-up psf for the future condos there are likely to be about 3-4 times its land price psf :D
All thanks to our soaring rental and higher labour costs, our SMEs are gradually moving out. Many will end up in Iskandar.
Seeking greener pastures
http://www.businesstimes.com.sg/sme-magazine-marchapril-2013
And this is no coincidence due to job prospects.
Wave of revived interest in banking and finance
http://www.businesstimes.com.sg/premium/top-stories/wave-revived-interest-banking-and-finance-20130330
Costs in Singapore will continue to move up in the next few years. Just scan of the headlines below tells you what will be coming.
http://www.businesstimes.com.sg/premium/week-review-week-ahead/week-march-25-29-2013-20130330
Singapore will become a place to educate your kids and a place to work to earn $. For family recreation or retirement, it is better to look elsewhere for an average person like me.
Take care. I will not be posting for a long time again ;)
A little bit but mainly because Singapore property party was over in 2012. I was also looking for some ways to hedge against inflation and have a landed property in Iskandar as a holiday or retirement home.
Now that Temasek has moved into Iskandar officially, it will provide insurance to me: it's land price alone at Danga Bay is significantly more than the prices I paid for my two JB properties at prime locations in terms of built-up psf. Its built-up psf for the future condos there are likely to be about 3-4 times its land price psf :D
When you return to this forum, perhaps you can clarify this land price they paid.
The first JV involves buying 3.1m sqft of land at RM$811m. Which works out to be $262psf ppr, before including GFA. Assuming plot ratio of 1.5. Their sqft on land is $175psf. Earlier stages of iskandar projects were sold at about RM$600k. Assuming land plot of 2000sqft. Price is $300psf. If built up is 250psf. Price on built up is 240psf.
When you return to this forum, perhaps you can clarify this land price they paid.
The first JV involves buying 3.1m sqft of land at RM$811m. Which works out to be $262psf ppr, before including GFA. Assuming plot ratio of 1.5. Their sqft on land is $175psf. Earlier stages of iskandar projects were sold at about RM$600k. Assuming land plot of 2000sqft. Price is $300psf. If built up is 250psf. Price on built up is 240psf.
Okay just to clarify: I take the price before factoring plot ratio at $262 RM psf, mine are just above $230 RM psf. Not an issue to me, because after construction cost, their break-even cost will be much higher than the price I have paid. Thanks for giving constructive feedback. Bye! :cheers6:
new2mondrian
31-03-13, 10:10
One pretty interesting insight though. A lot of Singaporeans have a deep trust of Govt-linked corporations, regardless their pricing levels and quality. I know so many folks, GenY inclusive, who are sitting on the sidelines simply waiting for Capland to launch in Malaysia. The rationale being there is a tacit insurance in buying from Capl, regardless of pricing levels and location. It's truly amazing. Capl's pricing won't come cheap. Probably RM1300 and above. When CDL finally launches, RM 1500 pricing is not unthinkable.
Iskandar is huge, and most of the recent condo launches being sold to Singaporeans. Condo units require constant maintenance and a dedicated mgmt committee. Give it ten years, absentee owners will be a huge problem, hence my view is landed is still a better bet. As in all property investments, location and pricing is key. So for all the bros and sisters looking for a place in Iskandar, suggest you do your homework before taking the plunge yah? Mortgage rates is currently ard 4.25-4.5%, so it makes sense to factor that into your pricing calculations too, unless you intend to pay in full.
From a landed perspective, my view is that Singapore's landed pricing will have limited upside over the medium to long term simply due to the pricing disparity with Iskandar. Why would a Singaporean wish to pay $3M-$3.5M for a brand new landed, when the same could be bought for 10% of the price within 45mins drive away? The remaining $$$ could be better deployed to own other investment properties or assets. From a risk management standpoint, the case has become far less compelling to own a landed within Singapore IMHO.
Is landed property more insecure than condos especially those treated them as weekend home? I have a friend whose house was ransacked with missing lightings, gates and doors when they return to their homes on weekends.
One pretty interesting insight though. A lot of Singaporeans have a deep trust of Govt-linked corporations, regardless their pricing levels and quality. I know so many folks, GenY inclusive, who are sitting on the sidelines simply waiting for Capland to launch in Malaysia. The rationale being there is a tacit insurance in buying from Capl, regardless of pricing levels and location. It's truly amazing. Capl's pricing won't come cheap. Probably RM1300 and above. When CDL finally launches, RM 1500 pricing is not unthinkable.
Iskandar is huge, and most of the recent condo launches being sold to Singaporeans. Condo units require constant maintenance and a dedicated mgmt committee. Give it ten years, absentee owners will be a huge problem, hence my view is landed is still a better bet. As in all property investments, location and pricing is key. So for all the bros and sisters looking for a place in Iskandar, suggest you do your homework before taking the plunge yah? Mortgage rates is currently ard 4.25-4.5%, so it makes sense to factor that into your pricing calculations too, unless you intend to pay in full.
From a landed perspective, my view is that Singapore's landed pricing will have limited upside over the medium to long term simply due to the pricing disparity with Iskandar. Why would a Singaporean wish to pay $3M-$3.5M for a brand new landed, when the same could be bought for 10% of the price within 45mins drive away? The remaining $$$ could be better deployed to own other investment properties or assets. From a risk management standpoint, the case has become far less compelling to own a landed within Singapore IMHO.
This will continue to be serious....they always have ppl on lookout and if they know u only go visit on weekend, what do u think....??
Is landed property more insecure than condos especially those treated them as weekend home? I have a friend whose house was ransacked with missing lightings, gates and doors when they return to their homes on weekends.
Temasek never lose money before? :D
Prices will go higher. Temasek's new launches will form the price floor. Prices will almost never go back to 2012 level.
A fresh ground report for you based on my JB trip yesterday: many Singaporeans are scrambling for a landed property in Iskandar now.
new2mondrian
31-03-13, 10:48
Is landed property more insecure than condos especially those treated them as weekend home? I have a friend whose house was ransacked with missing lightings, gates and doors when they return to their homes on weekends.
Yeah security is the main risk, but I see not much significant difference between a condo and a landed in Malaysia. Condo wise, the car is parked in the shared car park, which could be worse if the condo devt is integrated with commercial activities (eg medical suites or a huge mall). If thieves can break into a gated and guarded landed compound, similarly they could get into the condo lift and get into the condo unit. Got to install own security surveillance and deterrence structures. My ID who did tonnes of landed projects in Singapore suggested raising the parameter wall and using shatter proof reinforced glass structures around all the window openings. I am still considering the suggestion. But cost will mount.
My hubby suggested that we simply blend in lah. Be the most lok kok house in the whole GnG compound, get a proton wira (about RM20k can get a 2nd hand car) and drive ard lor. Lol... I am still considering the options. Welcome any inputs too!
What makes iskandar landed homes as an attractive holiday home or retirement home?
I had mentioned iskandar landed homes are not convenient for old folks as u need to drive. Robbers target older folks primarily too.
As for holiday home, please enlighten me. I do not feel at ease whenever i step into malaysia. I did not want to drive into msia ever since i was stopped by their police getting summons which i did not commit. Fortunately, i did not lose my car or rob before.
Those travelling with kids and/or teenage girls, please be extra careful. Kidnappers there are ruthless.
As for the capland project at danga bay, i see it as a possible potential 2nd retirement home as it has integrated malls and hospitals.
The chances of landed getting burgled is alot higher compared to condo in jb. However, i agree most condo in msia looks very rundown. Maintenance will be tough.
Install CCTV cum alarm system all around the house and link to singapore . Can use low voltage gate and fence in Malaysia? Thinking of getting a yacht and berth there but worried of burglar.:(
Yeah security is the main risk, but I see not much significant difference between a condo and a landed in Malaysia. Condo wise, the car is parked in the shared car park, which could be worse if the condo devt is integrated with commercial activities (eg medical suites or a huge mall). If thieves can break into a gated and guarded landed compound, similarly they could get into the condo lift and get into the condo unit. Got to install own security surveillance and deterrence structures. My ID who did tonnes of landed projects in Singapore suggested raising the parameter wall and using shatter proof reinforced glass structures around all the window openings. I am still considering the suggestion. But cost will mount.
My hubby suggested that we simply blend in lah. Be the most lok kok house in the whole GnG compound, get a proton wira (about RM20k can get a 2nd hand car) and drive ard lor. Lol... I am still considering the options. Welcome any inputs too!
Is it possible to buy empty FH land in malaysia? I am actually looking for very old landed homes which are cheaper now in jb. Thinking to buy and leave it vacant. Purely for capital appreciation.
Have heard from a friend that his grandad land has a land and recently found that another person has the same land title deed as him. It is probably some one in the equivalent of SLA in Malaysia thinking that this person must be dead and can duplicate the deed and sell to another person.
Have heard from a friend that his grandad land has a land and recently found that another person has the same land title deed as him. It is probably some one in the equivalent of SLA in Malaysia thinking that this person must be dead and can duplicate the deed and sell to another person.
So, it is dangerous to buy a resale home in malaysia?
Safer to buy from developer?how about selling it in future? Will the potential buyer worry about the title deed?
What happen when UMNO say all property own by Singaporean need to return back to Malaysia?
http://www.mas.gov.sg/news-and-publications/parliamentary-replies/1998/dpm-lee-s-reply-to-parliamentary-question-on-clob--12-oct-1998.aspx
2 The government cannot protect investors from such risks. Investors have to keep their eyes open and judge for themselves whether the returns are adequate to justify the risks.
many people forgot abt 1998. this will happen again. never trust the malaysian government after so many example. 1998 curb, clob etc.
Care to share why? Good to hear differ opinion
Why? Coz after the 1998 malaysian impose curb on Singaporean buyers. back tracking the policies a few years back. The experience on clob. Don't Singaporean learn?
To invest in a country the country policies must be stable and clear not change with government and fly by night? Time and again Malaysia policies are shown to have done so.
Thays why Singapore have been a prefer place to invest. I would rather choose countries with lower yield but a more stable governing policies.
Also the saying to use for holiday home if cannot sell. There are so much land in JB n malaysia. How would you think its investment grade in JB? Holiday home? everyone buy's for holiday home mean whole street are empty and 20% occupancy ?
Buglars galor. come n cart everything in your holiday home away.
plus JB u think safe? hmm think abt it.. uncless u want to hold up in ur holiday home and dont go out.
http://www.youtube.com/watch?v=r2khZ9CxI-E
http://www.youtube.com/watch?v=I66U0DCcQls
http://www.youtube.com/watch?v=JeZWiXg0VDo
http://www.youtube.com/watch?v=aJ66fLJNjhA
http://www.youtube.com/watch?v=pDriKzMRI4I
http://www.youtube.com/watch?v=N99H5pIfhYM
Aiyo.. why need to worry too much on a 300k house whether can sell 450k.. or even sell at same price 300k after 15 yrs..
You just ask MR B.. he rented hdb 3-rm for 15-yrs.. already costed him 300k.. all goes down the drain & still dun have a house on his own.
At least yours is a F'hold 300k house.. dun make profit also ok lah.. free stay for 15-yrs leh.. No joke lor.. still no enough just stay for 30-yrs lor.. :D
The 300k terrace house in Iskandar.. a similar one in SIN will cost you 2.3-2.5m..
But if you own a 2.3-2.5m one in S'pore then you better be more worry.. cos when there is a major correction.. easy drop 20-30% which is 400k-700k..
No offense.. just my view :)
ur justification of not paying ABSD 300K and spend 300K in JB prop instead is kinda flawed.
to me its like saying throw away 300K in JB and write off verses spend 300K in tax in singapore is more worth it. Well it depends right? if the 300K tax I pay in singapore I can still sell and get capital appreciation from rental etc. and sell it when I need cash many yrs later. While the JB 300K is a throw away. Rental yield there is poor and liquidity to sell is also poor.
300K will not get u a gated community terrace or a new development. so you would also have to live with the crime rate.
Its not a apple to apple comparison. One is a throw away 300K there other is 300K pay for something that have returns.
So which have value. I guess lets the people throwing 300K or investing 300K decide. ;)
Why? Coz after the 1998 malaysian impose curb on Singaporean buyers. back tracking the policies a few years back. The experience on clob. Don't Singaporean learn?
To invest in a country the country policies must be stable and clear not change with government and fly by night? Time and again Malaysia policies are shown to have done so.
Thays why Singapore have been a prefer place to invest. I would rather choose countries with lower yield but a more stable governing policies.
Also the saying to use for holiday home if cannot sell. There are so much land in JB n malaysia. How would you think its investment grade in JB? Holiday home? everyone buy's for holiday home mean whole street are empty and 20% occupancy ?
Buglars galor. come n cart everything in your holiday home away.
plus JB u think safe? hmm think abt it.. uncless u want to hold up in ur holiday home and dont go out.
http://www.youtube.com/watch?v=r2khZ9CxI-E
http://www.youtube.com/watch?v=I66U0DCcQls
http://www.youtube.com/watch?v=JeZWiXg0VDo
http://www.youtube.com/watch?v=aJ66fLJNjhA
http://www.youtube.com/watch?v=pDriKzMRI4I
http://www.youtube.com/watch?v=N99H5pIfhYMyou will kena left right by those vested in iskandar lah...
you will kena left right by those vested in iskandar lah...
well I have experience the 98 event. lost $ in it. lost $ in clob. So for me Malaysia is no no. I dont see any diff in Malaysia way of handling things. So why will Iskandar be of any diff.
Also imagine everyone buy for investment n holidays. how can the local infra there survive ? ur restaurant, clinics or shops? Coz assume 20% utilization for example. If those infra dont survive they will close 1 by 1. creating a chain of events where people dont go live there coz ? due to lack of infra.
anyway go talk to the dairy farm owners. see how they felt when they got screw over the last time ;)
well I have experience the 98 event. lost $ in it. lost $ in clob. So for me Malaysia is no no. I dont see any diff in Malaysia way of handling things. So why will Iskandar be of any diff.
Also imagine everyone buy for investment n holidays. how can the local infra there survive ? ur restaurant, clinics or shops? Coz assume 20% utilization for example. If those infra dont survive they will close 1 by 1. creating a chain of events where people dont go live there coz ? due to lack of infra.
anyway go talk to the dairy farm owners. see how they felt when they got screw over the last time ;)
Well said...
I agreed.....
:cheers4:
So far the one project I have that is of investment grade in Johor is Straits View at Permas.
Have to be very selective though.
GST? Effect of Printing money?
Someone might have gotten money. If not the average people, then who?:rolleyes: My guess is as good as your guess:p
There is always a risk in any purchase. Juz b happy w ur own decision. Singapore is getting too expensive to retire comfortably for me. I feel tt there r hidden forces at work to inflate cost of living. The returns from taxes or national investment is not really felt by e average person in e street. Something is not right. I could be wrong but I have faith in my thoughts n decision r right. So far on checking operating costs, I'm right.
new2mondrian
31-03-13, 17:40
Thanks really to everyone for your inputs. Yup, agree that security over there is a main concern, and will remain so for the next decade to come. Having said that, common sense prevails in many instances. Petty thefts is no more prevalent in Iskandar than Spain, Italy, US, or even certain parts of London. I know of number of Malaysian friends and ex-colleagues who continue to stay in JB and commute to Singapore on a daily basis for work, and they stay in landed properties, most of which in non G&G compounds. Life goes on as usual, and it is really to avoid going out after dark especially to poorly lit areas, and avoid excessive display of wealth in public areas. They have been there for years, and so far so good.
Choice of retirement/holiday homes is a very personal and subjective matter, and yup, having my personal yatch berthed in my backyard would be great. But in 30 years' time when I retire, probably there would be no golf courses in Singapore, and public spaces will be reduced. Hopefully medical infrastructure will be well developed over there, and the rental incomes from my Singapore based properties could sustain my lifestyle over there. So in a way, the $300k is a hedge against the future as an added option. But whether i need to exercise it would depend on how the development of Iskandar pans out. But 30 years is a long term planning horizon. Right now to us it is simply a holiday home.
Malaysia's legal system and contracts are all maintained in English. Useful to understand the strata titles act if one is keen on getting a property.
http://www.agc.gov.my/Akta/Vol.%207/Act%20318.pdf
Agree that S$300k units (international are harder to find these days. Recent launches (Nusa Duta, Bestari Heights) are closer to $400k, though these are walkable to amenities (eg Giant).
In a place where there is lot of land, the price of the property don't appreciate much and even if it did appreciate it will go down when the supply is more than demand.
new2mondrian
31-03-13, 17:53
Some random cheaper (also smaller ones), but as Kane said, need to be really selective over there and recce the surroundings well.
http://www.propertyguru.com.my/property-listing/arte-bukit-indah-nusajaya-iskandar-jb-for-sale-1866995
I have been very tempted to buy property in Malaysis but I have a feeling this will end up like Dubai and Malaysia will ask Singapore / Temasek to bail them out in the next crisis just like how Dubai asked for help from UAE.
Seriously, the towns will become mature eventually but I don't think will be anytime soon.
Just to share...
My friends drove up to Iskandar during the ph to review investment options. Saw East Ledang... big place with relatively smaller clubhouse and 25m pool. Horizon Hills is much better, lots of Singaporean cars, bigger clubhouse and Olympic sized pool. Puteri Harbour is really underdeveloped.
They have seen Penang 1 month earlier and felt that comparatively Penang has more potential upside.
Not much to share nowadays cos too many cooling measures already. So taking a breather... depending on individual needs and investment risk profile /appetite / horizon, those still on the sidelines and not limited by the cooling measures should really consider making their move in selected projects.
Just to share...
My friends drove up to Iskandar during the ph to review investment options. Saw East Ledang... big place with relatively smaller clubhouse and 25m pool. Horizon Hills is much better, lots of Singaporean cars, bigger clubhouse and Olympic sized pool. Puteri Harbour is really underdeveloped.
They have seen Penang 1 month earlier and felt that comparatively Penang has more potential upside.
Not much to share nowadays cos too many cooling measures already. So taking a breather... depending on individual needs and investment risk profile /appetite / horizon, those still on the sidelines and not limited by the cooling measures should really consider making their move in selected projects.
If i really plan to buy in malaysia.
I will buy in KL klcc or bukit bintang vicinity..
Property in such area needs to have certain niche criterion to maintain its popularity.
In a place where there is lot of land, the price of the property don't appreciate much and even if it did appreciate it will go down when the supply is more than demand.
In a place where there is lot of land, the price of the property don't appreciate much and even if it did appreciate it will go down when the supply is more than demand.
Horizon Hills bungalow starting 2-mio+ RM.. now developer selling 3.6-mio RM up lor..& resale asking around 4-mio RM
Senibong Cove semi-d starting 900k+ RM.. now resale transacted over 1.7-mio RM for river facing unit lor.. & some foreigners are willing to pay above 1.85-mio now for river facing semi-d
All this happened from a piece of bare land till TOP :D
When and IF more sceptics are converted, the rush cannot be imagined. This will be Dubai only if investors pull $ out. Will that happen?
The pace of sell out rate of industrial land and factories is a good sign.
Horizon Hills bungalow starting 2-mio+ RM.. now developer selling 3.6-mio RM up lor..& resale asking around 4-mio RM
Senibong Cove semi-d starting 900k+ RM.. now resale transacted over 1.7-mio RM for river facing unit lor.. & some foreigners are willing to pay above 1.85-mio now for river facing semi-d
All this happened from a piece of bare land till TOP :D
Sky88 was launched at 700 and then 900psf. Almost sold out in jb before launching in SG. Last tower launch price expected 1.5k psf..
It's not just sgp buyers. MY PR too.. And many foreigners and companies buying in zone b for own stay and staff. The relocation of companies is really picking up pace. Look at the trips organized by the various biz federations and chambers
Is it possible to buy empty FH land in malaysia? I am actually looking for very old landed homes which are cheaper now in jb. Thinking to buy and leave it vacant. Purely for capital appreciation.
Buy house and tear it down. Haha
Think land for companies with bumi share holdings.. Think there is a recent article by irda clarifying this
Sky88 was launched at 700 and then 900psf. Almost sold out in jb before launching in SG. Last tower launch price expected 1.5k psf..
It's not just sgp buyers. MY PR too.. And many foreigners and companies buying in zone b for own stay and staff. The relocation of companies is really picking up pace. Look at the trips organized by the various biz federations and chambers
singapore biz men are never well known to be street smart or shrewd compared to malaysians, hk, taiwan and china. so all these trips mean nothing.
If i really plan to buy in malaysia.
I will buy in KL klcc or bukit bintang vicinity..
these ppl are buying only to flip. Who the hell will put his life at risk stayig in JB? :D :doh:
new2mondrian
31-03-13, 22:10
Just to share...
My friends drove up to Iskandar during the ph to review investment options. Saw East Ledang... big place with relatively smaller clubhouse and 25m pool. Horizon Hills is much better, lots of Singaporean cars, bigger clubhouse and Olympic sized pool. Puteri Harbour is really underdeveloped.
They have seen Penang 1 month earlier and felt that comparatively Penang has more potential upside.
Not much to share nowadays cos too many cooling measures already. So taking a breather... depending on individual needs and investment risk profile /appetite / horizon, those still on the sidelines and not limited by the cooling measures should really consider making their move in selected projects.
East Ledang and Horizon Hills are nice. I imagine 15 years on, as the current grand dame of golf courses e.g. SICC, Raffles Cty Club, Keppel cease operations, the demand will pick up. But I missed the early curve to enter Horizon and East Ledang. Prices have gone up by a lot. I buy only when I see early/confirmed potential, not before. So well. :( And I don't have enuf cash to pay up in full for a HH or East Ledang, and the 4.5% financing option is not too palatable.
Agree that Penang has more potential at this point, and the units facing the Andaman Sea are simply breath-taking. But I see the high speed rail as a game changer. In my lifetime, I think there is hope to see northward linkages into Thailand and beyond, linking the whole of SEA into an economic nucleus. How it would pan out for Singapore, I do not know. But Penang being an island on its own and comprising of a Chinese majority, my gut feel is that it will get bypassed over time. If I buy into Penang, I'd rather get KL. KL is another can of uncertainty at this point. Unless they remove the Bumi policy of 30% ownership for Professional firms, otherwise I do not envisage foreign rental demand to take off in a significant way. I am still watching the politics and policy on that front.
Iskandar is a bet, a $300K bet for me lah. If there is upside, I may increase stakes. If no upside, well my child will get to build his treehouse, my hubby will get his landed dream fulfilled, and I simply will get a huge kitchen to bake. lol... Having said that, the industrial demand in Iskandar is gaining traction, not just from petroleum storage and related activities, but also in the components and BMS space. IRDA in time to come, will be an economic contender to watch for. My two cents.
new2mondrian
31-03-13, 22:52
Oh yes, speaking of horizon hills, there's a fantastic blog by a Singaporean couple who stays in HH and commutes daily to Sgp for work. Pretty interesting read about life in iskandar.
I got very inspired about gardening after reading her blog! :)
http://horizonhills.wordpress.com/
Oh yes, speaking of horizon hills, there's a fantastic blog by a Singaporean couple who stays in HH and commutes daily to Sgp for work. Pretty interesting read about life in iskandar.
I got very inspired about gardening after reading her blog! :)
http://horizonhills.wordpress.com/
There is nothing inspiring at all about living in jb, in fact it's tougher to live there cos u have to be extra careful n alert whenever u are driving or if u are living in a landed property..
we can summarised that buying into iskandar is like buying a singapore dream which meanywill never achieve in sg. whether the dream comes true or turn out as nightmare, only time will tell.
many people forgot abt 1998. this will happen again. never trust the malaysian government after so many example. 1998 curb, clob etc.
As long as Malaysian politics do not get cleaned up, I will never invest in Malaysia. Rules can change overnight. Some positive signs lately because of Najib but the core is just as rotten and he is not going to be around forever.
As long as Malaysian politics do not get cleaned up, I will never invest in Malaysia. Rules can change overnight. Some positive signs lately because of Najib but the core is just as rotten and he is not going to be around forever.
Najib has his agenda. And Iskandar is his pet project. Well can also assume many have their hands in the cookie jar.
so as the usual politics goes in Malaysia. Things will change. maybe by the time the project TOP new leaders come in power. and new batch of cookies get made.
The Iskandar will be the cookies of the yester years like the dairy farm, the clob the 98 curbs , the crooked bridge ,Port project etc.
JB hav no value other than being close to singapore. If Singapore slows and flouter with all the noise and demand to slow down. How would it impact JB? Will JB be more impacted than SGP if singapore screw up?
Also the security is a big concern in JB. Today Najib wants JB t be successful to reap the fruits. Once the harvesting is done. Do you think they have any further interest to continue to put budget to the infra in JB and security? or they rather spend the $ in KL area? or some other new pet projects?
one thing with Malaysia is they never have a a long term sustainable vision. Thus I have no faith to put my hard earn cash there to be "raped" by the politician.
phantom_opera
08-04-13, 22:34
I remember what MM Lee always say: Singapore is fragile economically
if so, how about Iskandar leh :-)
but don't get me wrong, I wish Iskandar a success, at least I can do my dental at 25% cost of Singapore, watch a movie for RM10, get cheap cheap medical treatment when I need it
I remember what MM Lee always say: Singapore is fragile economically
if so, how about Iskandar leh :-)
but don't get me wrong, I wish Iskandar a success, at least I can do my dental at 25% cost of Singapore, watch a movie for RM10, get cheap cheap medical treatment when I need it
and 2hours of good massage at RM90 :ashamed1:
http://www.channelnewsasia.com/news/video/business-loans-to-iskandar-on-the-rise-a/632124.html
Business loans to Iskandar on the rise as more local SMEs expand overseas
Iskandar Zone E
http://www.iskandarmalaysia.com.my/flagship-e-senai-skudai
MRO operators landing at Senai airport
Seletar Aerospace Park facing competition as Senai Airport woos Singapore-based companies
By Ven Sreenivasan (http://www.businesstimes.com.sg/reporter/ven-sreenivasan)
Published April 09, 2013
http://www.businesstimes.com.sg/sites/businesstimes.com.sg/files/imagecache/image_300x200/BT_20130409_VSSENAI_495761.jpg (http://www.businesstimes.com.sg/sites/businesstimes.com.sg/files/imagecache/filenamee/BT_20130409_VSSENAI_495761e.jpg)
Up and coming: EJA's facility (above) will have FBO, MRO and an office complex covering some 70,000 sq ft. 'Our customers are looking at lower costs and convenience which we can offer at Senai with our new facility,' says joint owner Prithpal Singh. - PHOTO: SENAI
[SINGAPORE] Seletar Aerospace Park could face some headwinds in the business jet and single aisle aircraft maintenance and fixed-based operations (FBO) sector.
Just weeks after it emerged that Indonesian-based investors are eyeing an MRO (maintenance, repair, overhaul) start-up in Batam, BT has learnt that such developments are already well underway at Senai Airport, with the airport starting to attract several Singapore-based players to set up ground operations.
Executive Jets Asia (EJA), which is owned by Singaporean businessmen Prithpal Singh, David Ho and Mohd Yunos (also chairman of airfreight company Airmark Group), has started construction of the first of its two FAA Class 2 hangars on a 2.5 acre site at Senai Airport. It has also secured a two acre site for its second hangar.
Both sites have direct runway access.
According to Mr Singh, the facility under construction will have FBO, MRO and an office complex covering some 70,000 sq ft, and meets NFPA 409 standards (the minimum requirements for the proper construction of aircraft hangars for protection from fire).
"This is a RM40 million (S$16.2 million) investment for our company. We will have the equipment and manpower to provide maintenance and repair for such aircraft and all executive jets of all sizes," he said.
When completed in June this year, this facility will be able to handle two Airbus 320 or Boeing 737 planes at any one time, or several smaller executive jets - the type of aircraft which Seletar is targeting.
EJA will be the first and last operator to build-own- and-operate its own facilities.
A senior official of Senai Airport Terminal Services Sdn Bhd (Sats) - which owns and operates Senai Airport - told BT that the airport has set aside another 10 acres of land for the construction of more aircraft hangars.
He revealed that Senai Airport has also allocated 300 acres for an aerospace park that will house avionics and other component manufacturing industries, logistics players and other aviation-related businesses.
"For a start, we will be building about four hangars and leasing them out to operators," he said.
Sats, which is owned by Kuala Lumpur-listed MMC Bhd, is the first independent airport operator in Malaysia. It took over the operations of Senai Airport from Malaysia Airports Holdings Berhad (MAHB) in 2003.
Sats had been working closely with various Malaysian government agencies, including the country's Department of Civil Aviation, to establish Senai as the country's southern airport hub. The official added that Sats was already entertaining inquiries from aerospace players in Malaysia, Singapore and elsewhere.
Besides EJA, Senai has been entertaining an increasing number of other aerospace players from Singapore. BT understands that these include ST Aerospace, which is reportedly seeking hangar space and facilities for a fuel farm, and about half a dozen other companies, including Jet Aviation, which are operating out of Seletar Aerospace Park.
These are major developments for an airport which has, until now, been something of a sleepy aerodrome serving the south Johor region. But not anymore, it seems.
So will a resurgent Senai airport pose competition, or complement, Singapore?
Some Johor authorities see synergies in working closely with Singapore.
Iskandar Regional Development Authority chief executive Ismail Ibrahim recently said that a Singapore-Senai twin-airport concept would boost the aviation industry in the Republic and south Johor, and complement the two major land transportation projects (High Speed Rail link and Rapid Transit System) already being envisaged by the two countries.
"We should capitalise on each other's strengths and capabilities to make the twin-airport project a reality for mutual benefit," he told StarBiz, the business section of Malaysia's The Star newspaper.
But Mr Singh believes that Senai's lower cost base could pose competition for Singapore. "Our customers are looking at lower costs and convenience which we can offer at Senai with our new facility.
"As this is somewhat of a greenfield project, it makes its easier for us to be flexible and meet clients' needs."
All this comes just weeks after Indonesian airline catering and maintenance provider PT Cardig Aero Services (CAS) said it was contemplating setting up a jetliner-heavy maintenance business in Batam. CAS's chief executive officer and president Diono Nurjadin recently said the company had identified a potential site at the island's Hang Nadim Airport with a 4km runway and a hangar that can take two single-aisle jet aircraft.
http://www.businesstimes.com.sg/premium/top-stories/mro-operators-landing-senai-airport-20130409
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