Over the past few years, investors have watched the southern region of Malaysia like hungry hawks. Quite possibly the country’s biggest undertaking in recent times, Iskandar Malaysia’s final silhouette is finally gaining more visibility, drawing investors from within the • country and beyond.
Despite cooling measures and the overall concern of household income in the country, Iskandar Malaysia has seen an influx of both developments and investors.
What are some of the benefits of investing in Iskandar Malaysia?
Iskandar Malaysia (Iskandar Johor Bahru Malaysia) is a growth region which offers a strategic location and great accessibility via multiple entry points, namely the Coastal Highway and the • Eastern Dispersal Link. These highways are also flanked by Changi International Airport in Singapore and Senai International Airport near Johor Bahru. Comparatively speaking, Malaysia is still a very attractive destination regionally in terms of its lower overall costs and excellent infrastructure.
The substantial foreign investment in IM, valued at RM129.42 billion in 2013 according to the Iskandar Regional Development Authority (IRDA), will assist with the generation of more economic ventures such as manufacturing activities.by multinational corporations. The mushrooming of international schools and colleges in EduCity, Nusajaya is also poised to solidify the educational offerings in the area.
Additionally, IM has been experiencing a rapid population growth due to the large number of people migrating there, recording migration rates of 5.2% and 7.5% in 2011 and 2012 respectively. Developments within the region such as the upcoming Mass Rapid Transit and High Speed Rail link also, bode well for its long-term growth prospects in terms of migration. Pair this with IM’s investment-friendly policies, strong legal framework and stability and you have enough benefits to instil confidence in investors.
How did the Budget 2014’s cooling measures affect Iskandar Malaysia?
The measures introduced over the last year have, to an extent, dampened take-up rates in certain segments of the market. Despite that； underlying fundamental demand for good properties remains strong. As such, I believe that most developers will adjust their projects mix to launch products which meet the needs of genuine homebuyers. Over time, this should improve the take-up rates for the market.
What are some of the challenges that Property developer should aware?
Some of the issues that we are hoping to address are the rising costs of land, labour and materials which have resulted in a hike in construction costs. Developers have to be careful and launch products which are both commercially viable and affordable to their targeted customer base.
On the positive side, however, infrastructure throughout the region has improved tremendously over the past few years. Travelling by car is a breeze now and this has opened up many new development corridors, although the enhancement of public transport is still immensely necessary. A reliable public transport provision will definitely benefit the public, especially those living in the newer housing estates.
What is the best kind of property to buy in Iskandar Malaysia? Is residential the best choice or would a retail outlet or SoHo be a better option?
Looking at it from a purely investment-based outlook, property types may not be the sole aspect to consider when making this sort of decision. Location, surrounding amenities, accessibility and the developer’s reputation are equally crucial as these would generate sustainable demand for the properties. This of course applies to primary purchasing, secondary purchasing and rental as well. For how to choosing the right property , you can visit here for property buying guide .