Iskandar Malaysia News Update - FEB 2014

Some of the FEB 2014 news which I compiled from various websites:

• Malaysia's 50 Richest, 2014: The Road to Iskandar
• Oversupply of real estate in Malaysia short-term situation
• They call it Greater Singapore
• Bus service upgrade for Iskandar Malaysia region
• Overhang likely to appear in secondary market
• Imagica Branches Out In Pinewood Malaysia Joint Venture
• Johor govt to clarify on curbs in Iskandar
• Eco World to launch two townships with combined value of RM5bil
• Analysts optimistic on Sunway despite Iskandar Malaysia property slowdown
• UEM Sunrise, KL Kepong In Iskandar Jv
• RHB Bank taps on Iskandar's potential
• S'pore investors cautious about property investments in M'sia

Summary: Despite rising concerns on weaker property market in Iskandar Malaysia, especially from Singapore investors, the truth is that Malaysia property developers are still venturing here, due to several reasons:

• Limited land banks in Greater KL and Penang, and Johor government took action to lure more property developers to take greater risks in venturing Iskandar Malaysia (e.g. exemption of the floor price of RM1.0M property purchase in Medini etc.)
• Cooling measurements introduced by Singapore government have pushed several investors or people (especially Malaysians) working in Singapore to buy a property in Malaysia and you would not be surprised that the traveling hour during peak hours in between the causeway could reach more than 1 hour. 

As the property prices have gone up more than 100% in certain area (e.g. Horizon Hill, Bukit Indah, Tebrau etc) in just 3-5 years time, I do not believe that the price could rise for another 100% in 4 years time, as more and more citizens just could not afford to it as the increase of disposal incomes cannot catch up with the pace of property prices rising here. 

Nonetheless, I believe that as long as the public infrastructure especially MRT could be linked to Johor Bahru CIQ, there would be higher chances that the number of travelers to Singapore could increase by at least 30% further.