Potential of Malaysian Properties (Iskandar)

[garrylsw]

Bros what is the potential of Malaysian properties namely Iskandar? Among the many factors, rends shows a strong international foreign property ownership there. Is this relevant to risk assessment of a property there? Would there be a stability in prices there in the long run?

 

[Shiny Things]

Bros what is the potential of Malaysian properties namely Iskandar? Among the many factors, rends shows a strong international foreign property ownership there. Is this relevant to risk assessment of a property there? Would there be a stability in prices there in the long run?

Nah, you couldn't pay me enough to invest there. You've got all the downsides of the usual real estate investment (illiquidity, maintenance costs, returns worse than stocks) plus all the usual downsides of emerging markets (sovereign risk, volatility, sensitivity to the taper).

 

[tekster]

Nah, you couldn't pay me enough to invest there. You've got all the downsides of the usual real estate investment (illiquidity, maintenance costs, returns worse than stocks) plus all the usual downsides of emerging markets (sovereign risk, volatility, sensitivity to the taper).

so why is fdi pouring into that region even so our own temasek holdings wants a share.

 

[Shiny Things]

so why is fdi pouring into that region even so our own temasek holdings wants a share.

Because they disagree with me. It takes two to make a market.

 

[cscs3]

so why is fdi pouring into that region even so our own temasek holdings wants a share.

If you plan to own a property there. You are likely in cetology for own stay or owner of 1 or 2. When those big investor are there, they sell by quantity and mostly supported by local government.

Once sold, job is finished. If there is a problem, the "talk" is between government. Do you have the same capacity?

 

[kezgtree]

Bros what is the potential of Malaysian properties namely Iskandar? Among the many factors, rends shows a strong international foreign property ownership there. Is this relevant to risk assessment of a property there? Would there be a stability in prices there in the long run?

...read a few post in sammyboy's alfresco..pertaining to buy hse..a 2story
corner lot(pearl)at Seri Austin was selling appx. 650k last may-june(2012). call up and enquired pearl2....now 940k....you think can buy...

 

[garrylsw]

If you plan to own a property there. You are likely in cetology for own stay or owner of 1 or 2. When those big investor are there, they sell by quantity and mostly supported by local government.

Once sold, job is finished. If there is a problem, the "talk" is between government. Do you have the same capacity?

I agree. once sold and built its our own issues. the key factor is WHICH dev: Temasek land , Capitaland, Country Garden, Far East. The confidence level among foreign developers in Iskandar is now at an all-time high.

A Key pillar of confidence comes from diversified interests. Singaporeans are but one group in a sea of others : Johor Bahru, Hong Kong, Jakarta, Kuala Lumpur, China. The risks are exponentially shared and every international player knows this.

so why is fdi pouring into that region even so our own temasek holdings wants a share.

There are essentially 3 reasons why property buyers from Singapore have shunned Iskandar in the past.
1) concerns over safety is legitimate
2) the lack of infrastructure in comparison to Singapore
3) concerns over execution. (Malaysian Developers poorly perceived by Singaporean)

It is noted there is a visible improvement in infrastructure development and execution over the past 8 years or so. For example: Interests from Hong Kong serve as a key thrust so that they can have a good sense of what the response is going to be like from the China market.

...read a few post in sammyboy's alfresco..pertaining to buy hse..a 2story
corner lot(pearl)at Seri Austin was selling appx. 650k last may-june(2012). call up and enquired pearl2....now 940k....you think can buy...

wow broa is that resale or developer price??

 

[antonpoh]

There are essentially 3 reasons why property buyers from Singapore have shunned Iskandar in the past.
1) concerns over safety is legitimate
2) the lack of infrastructure in comparison to Singapore
3) concerns over execution. (Malaysian Developers poorly perceived by Singaporean)

Went over to check out Iskandar last year.. i think lots of things still not ready yet. Example water supply and sewerage.

I remember going JB to eat seafood and a whole section of a few streets power went out for hours. For a huge city project like Iskandar, I hope they didn't forget to build extra power plant for this.

 

[cscs3]

...read a few post in sammyboy's alfresco..pertaining to buy hse..a 2story
corner lot(pearl)at Seri Austin was selling appx. 650k last may-june(2012). call up and enquired pearl2....now 940k....you think can buy...

If you add in the exchange rate different between last year and now. May be the net increase is not so much?

 

[cscs3]

Went over to check out Iskandar last year.. i think lots of things still not ready yet. Example water supply and sewerage.

I remember going JB to eat seafood and a whole section of a few streets power went out for hours. For a huge city project like Iskandar, I hope they didn't forget to build extra power plant for this.

Well, you should expect a much higher price if all these are ready ! I think we cannot expect the same as Singapore to be fair.

 

[ton188]

well... iskandar is trying it's best to be Shenzhen

again... when it is cheap nothing is good around there...

when it is good, nothing is cheap there...


invest when you are comfortable, and expect it to be long term, talking about 10years.

imo, dont see much JB can do in 5.

they lack of population which CHINA obviously have superiority over msia.

Coming from a person whom is interested, but never will EVER buy anything in JB, I only believe a city will be a city, a sub city will always be a sub city, no sub city can be a city.

Put ur money in SG, if cannot afford, put in any CITY better, safer

 

[peterchan75]

This is a comment from a KL friend who is in the property line. The price tag is geared towards SG investors. He said that with a big grin.

 

[garrylsw]

This is a comment from a KL friend who is in the property line. The price tag is geared towards SG investors. He said that with a big grin.

What does that mean

 

[peterchan75]

What does that mean

If comparing here and there, it's cheap because it's comparing apple to orange. Should compare against property in other parts of MY.

 

[tekster]

This is a comment from a KL friend who is in the property line. The price tag is geared towards SG investors. He said that with a big grin.

an investor does not live where they buy leh.

 

[tekster]

Whatever you do, don't believe what the property agents tell you. Do your own research...

this is like the most obvious thing to do leh.

 

[garrylsw]

this is like the most obvious thing to do leh.

Hahaha ya commonsense hor

 

[cscs3]

an investor does not live where they buy leh.

I was about to say a real investor do not ask question in forum! As he know what is best.

 

[Yellowfin]

Please refrain from name calling. Be civil even if you don't agree with what being posted.

 

[garrylsw]

If comparing here and there, it's cheap because it's comparing apple to orange. Should compare against property in other parts of MY.

yea i was looking at the properties in Iskandar as an investment. Of those I've seen, from landed to condo, I believe three key factor make a sound property investment. All three factors must be satisfied or this is not the right investment for said person.

First our risk tolerance and capital. $400,000 > capital >$200,000 is a gauge of whether you are suitable for the market here.

Second, a reputable developer. Be it condo or landed, the developer is the key. Example. IOI , UEM , Country Garden

Third, I believe the scale of the development is important in Malaysia. We must not use the same lens of seeing condo developments in Singapore. Example: A typical condo size in Singapore is considered too small when applied to Iskandar. On top of the top two factors, the size will enable a healthy critical mass for sustainability.

Just sharing my views , hope to hear some good non dismissive feedback

... or else will complain to moderator ! haha