Iskandar property prices shoot up

[lajia]

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.

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/p...n_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.

[Arcachon]

What happen when UMNO say all property own by Singaporean need to return back to Malaysia?

http://www.mas.gov.sg/news-and-publi...-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.

[lajia]

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-publi...-oct-1998.aspx

[hyenergix]

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.

[Arcachon]

"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]

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.

[newbie11]

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.

[teddybear]

If UMNO loses power, you will see more unheavel (under the table)!
Iskandar is the brainchild of UMNO, what will happen then?

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.

[sgbuyer]

If UMNO loses power, you will see more unheavel (under the table)!
Iskandar is the brainchild of UMNO, what will happen then?

Selling land to foreigners. LOL

[hyenergix]

If UMNO loses power, you will see more unheavel (under the table)!
Iskandar is the brainchild of UMNO, what will happen then?

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.

[yowetan]

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.

[hyenergix]

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.

[yowetan]

Mount Sinai is better choice for u.

Yes. you are so right.

[sgbuyer]

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

[Komo]

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

[propertychap]

What about the nusantara prima area beside silc? Landed good there?

[Rysk]

....I buy 300K now maybe 15yrs later i can sell 450K?? minus the exchange loses, u make??

...

no offense, this is my alternative view.

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..

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

[heehee]

What? you follow Temasek? heehee?!

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.

[DC33_2008]

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 $$$.

[new2mondrian]

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.

[hyenergix]

What? you follow Temasek? heehee?!

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

[hyenergix]

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-...archapril-2013

And this is no coincidence due to job prospects.

Wave of revived interest in banking and finance
http://www.businesstimes.com.sg/prem...nance-20130330

[hyenergix]

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/prem...-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

[kane]

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

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.

[hyenergix]

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!

[new2mondrian]

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.

[DC33_2008]

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.

[lajia]

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.

[lajia]

Temasek never lose money before?

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]

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!