Medini Iskandar Nusajaya
For property investors in particular, in the whole expanse of land that is Iskandar Malaysia, Medini is like the Holy of Holies. It is a township that is planned to become the central business district (CBD) of Nusajaya一a KLCC in the making, up for grabs. Measuring 2,230 acres, it will, in the future, become a metropolis to be reckoned with, with numerous universities and colleges nearby (EduCity), attractions like Legoland and Pinewood Iskandar Malaysia Studios, the administrative capital of Kota Iskandar also close by, and Puteri Harbour, a premium waterfront development.
Various incentives have been accorded by the government to businesses wishing to establish base in the town, like 10-year corporate tax exemption, the allowance of global capital sourcing and 100% foreign ownership of businesses by non-Malaysians, and entitlement of non-Malaysians to purchase property valued under RM 500,000. And this has evidently been successful at attracting big businesses, from entertainment to property development.
‘‘As a developer, there is no reason for us not to grab the opportunity. We feel that Medini and Nusajaya has more potential than other parts of Iskandar Malaysia, because of the government’s plans to bring in new catalytic, international developments into the area, whereas you don’t have much of it in JB Town，” says Dato’ Soo Kai Chee, Executive Director of MCT Group, a developer with vested interests in Medini.
Because of this, property investors have been assaulted left, right, and centre with marketing collaterals of developments in Medini. And it is not a surprise, as they are partly banking on the real property gains tax (RPGT) exemption to sell their products. Homeowners will not be levied RPGT when they dispose of their properties in Medini anytime in the future, which is a very good deal i if capital appreciation proves exponential down the road, as they can flip like there’s no tomorrow. But that is not all that Medini has going for it, according to Soo.
‘‘Prudent investors would look for developments that would minimise their investment risk—Risk in the sense of not being able to sell or rent your property. If I were an investor, I would invest in Medini, because the catalyst developments that I mentioned before will later create job opportunities, and they are going to attract workers from overseas and other states in Malaysia. I will think this way: “In the future, when I want to sell my property in Medini to a foreigner, I can sell il easily. If its value is at RM 800,000, ；I can still sell it, but if the property is in JB, I will not be able to sell it, because there’s a minimum value limit to properties that are there.” So their risk is very much minimised in Medini,” comments Soo. A number of these catalyst developments have already begun i operations and the Flagship has already experienced a real tangible effect, one which can be seen. More expatriates have reportedly moved in to nearby residential developments and this demand for new housing in the central location will only continue to grow when the rest of these boosters are completed.
This may well be so, but do keep in mind that there are easily thousands of units of residential and mixed-use developments bi Medini that are going to be completed from end-2014 to end-0J6. d’Pristine’s concept of an integrated development aims to counter the “white elephant” possibility. By combining offices, residential, hotel, and shopping you get people within the building round the clock, keeping it vibrant with corporate workers on Weekdays, shoppers and diners on weekends and dinner time,tourists during holiday season, and homeowners all year long.
Having said that, sales of developments in Medini have been encouraging. d’Pristine，1 Medini, Afiniti, Iskandar Residence, Medini Signature, and Meridin are all either sold out or 70-80% sold within 3 months of launching, a sign of confidence by property investors.