Post by Eway on Jul 17, 2013 2:51:24 GMT 8
Johor property market will continue to boom due to the Singapore-Johor (HK-Shen Zhen) link, and Johor has the resources (Land space, current and future investments, labor) to support the growth cap that Singapore is experiencing and a natural process for Singapore money to pour over. The property laws in Singapore currently not foreigner friendly and well to do Asians are diverting their investments to Johor, this is quite evident in the recent well received sales of Johor properties. Personally I have clients from Hong Kong, China, Indonesia, Malaysia and Taiwan that have purchased properties under me.
For luxury property like The Astaka, the tenants will not be locals, the questions is whether there will be enough expats 5 years down the road to rent at a premium price. We can do a quick comparison with rentals in Woodlands (American International School) and see that the prices are no longer considered premium. A quick search for rental units on Property Guru for price range between S$8000 to S$15000 in woodlands turns up 133 listings. It will cost about estimated S$4000 to S$6000 to rent a unit at The Astaka.
Next we have the high speed rail that is projected to be operational in 2020, the impact of this will be immense and will cause a major population shift. As evident in the study below of past HSR in Japan and Europe. With population shift there will be influx of business and job creation all together lead to further capital appreciation and improved rental market.
In 2018 we will have Johor-Singapore RTS. As a Malaysian travelling to Johor for the past decade or so, I've seen that businesses has moved with the CIQ, when CIQ moved in-land, businesses shifted in-land and previously bustling areas slowed down. Upon the completion of the RTS there will be business growth around the immediate vicinity, the mobility the RTS will provide will enable and attract more expats and Singaporeans to work and live in Johor. RTS will also greatly lift Johor property prices.
HSR, RTS will cause a shift in population, next we need the infrastructure to support this in order for this to be sustainable. Cumulative investment as of 2012 in Iskandar is RM106.3 billion, and the amount is surpassing year after year. Ascendas is building a S$1.5 billion tech park and policies are encouraging Singapore firms to take up. The fully-landscaped park will offer quality infrastructure to support a range of industries such as electronics, pharmaceutical & medical devices, food processing, precision engineering, fast moving consumer goods (FMCGs), logistics & warehousing and general engineering services as well as land plots for customized facilities.
SiLC (Southern Industrial Logistic Cluster) is a 1307 acre land industrial park in Nusajaya that houses high tech industries currently already in operation. In SiLC 20% are Singapore firms and 70% are Malaysian firms. Some SME in Singapore are already expanding or moving into Iskandar, such as Old Chang Kee etc. Since 2006, singapore firms has over 300 factories in Johor and the numbers are growing. Within the next 5 to 8 years, Iskandar is projected to create over 500,000 jobs.
Land shortage, property prices, living cost (63% lesser compared to Singapore), labor cost differences is driving this HK - Shenzhen model of Singapore - Johor. CapitaLand Group also announced 2 prominent projects in in February 2013. One project is the joint development of a S$3.2 billion waterfront township on the island of Danga Bay with Temasek Holdings and Malaysia’s Iskandar Waterfront Holdings (IWSB). The Ascott Limited, having been given the green light to manage Somerset Medini Iskandar is another project.
Iskandar has reached a critical mass through completion of major infrastructure and real estate projects in 2012 and Iskandar is no longer a new term.
Given a 5 year timeline, with population shift, industry/business growth, The Astaka will be one of the top choices of residential to rent given proximity/connectivity to Singapore and closeness to nearby amenities. Iskandar Water Front Holding is the "UEM land" of Johor City and will further transform Johor CBD and coastline. Developers who built Mid-Vally has already confirmed another Megamall just 15 minutes drive up Jalan Tebrau. Just beside current JB central shopping mall another mall is due for completion. Mahabuilders have bought the abandoned Pacific Mall just right across the road from The Astaka in 2012 to refurbish. There are many more projects and investments to list.
Disregarding the rental market, another way is to sell off Astaka before TOP which I have done for one of my clients for another project. You can start to market your unit about 6 months before TOP, once a buyer is confirmed a lawyer will be able to draft up an agreement for the property to transact immediately upon TOP (Not yet given MOT so no payment of stamp duty!) Given Astaka's TOP timeline you will be slapped with a 10% RCGT.
Just a quick search, some current comparable Johor rental listing (RM7,000~RM9,000), please note none of these condominiums below has the scale,quality, location and unique features of the Astaka.
Mewah View Luxurious Apartments / RM10,000/ 3,850sqft
Strait View / RM9,000/ 3,000sqft
Wadihana / RM 7,000/ 3,450sqft
Sky Executive Suites / RM12,000/ 2,778sqft
Some links on Johor expat trends on community:
Trends of expats moving to Johor
Expat couples in Johor
Expat buying Johor homes
Expat buying Johor homes
Expat blogger living in Johor
Expat in Singapore sending kids to Malbourough college
News: Expat property market heating up
Johor sees influx of expats
All the above are facts put together and the details are much greater to this, I do believe in the Iskandar project and I hope that you do see the potential of Johor as an economic partner of Singapore.
For luxury property like The Astaka, the tenants will not be locals, the questions is whether there will be enough expats 5 years down the road to rent at a premium price. We can do a quick comparison with rentals in Woodlands (American International School) and see that the prices are no longer considered premium. A quick search for rental units on Property Guru for price range between S$8000 to S$15000 in woodlands turns up 133 listings. It will cost about estimated S$4000 to S$6000 to rent a unit at The Astaka.
Next we have the high speed rail that is projected to be operational in 2020, the impact of this will be immense and will cause a major population shift. As evident in the study below of past HSR in Japan and Europe. With population shift there will be influx of business and job creation all together lead to further capital appreciation and improved rental market.
In 2018 we will have Johor-Singapore RTS. As a Malaysian travelling to Johor for the past decade or so, I've seen that businesses has moved with the CIQ, when CIQ moved in-land, businesses shifted in-land and previously bustling areas slowed down. Upon the completion of the RTS there will be business growth around the immediate vicinity, the mobility the RTS will provide will enable and attract more expats and Singaporeans to work and live in Johor. RTS will also greatly lift Johor property prices.
HSR, RTS will cause a shift in population, next we need the infrastructure to support this in order for this to be sustainable. Cumulative investment as of 2012 in Iskandar is RM106.3 billion, and the amount is surpassing year after year. Ascendas is building a S$1.5 billion tech park and policies are encouraging Singapore firms to take up. The fully-landscaped park will offer quality infrastructure to support a range of industries such as electronics, pharmaceutical & medical devices, food processing, precision engineering, fast moving consumer goods (FMCGs), logistics & warehousing and general engineering services as well as land plots for customized facilities.
SiLC (Southern Industrial Logistic Cluster) is a 1307 acre land industrial park in Nusajaya that houses high tech industries currently already in operation. In SiLC 20% are Singapore firms and 70% are Malaysian firms. Some SME in Singapore are already expanding or moving into Iskandar, such as Old Chang Kee etc. Since 2006, singapore firms has over 300 factories in Johor and the numbers are growing. Within the next 5 to 8 years, Iskandar is projected to create over 500,000 jobs.
Land shortage, property prices, living cost (63% lesser compared to Singapore), labor cost differences is driving this HK - Shenzhen model of Singapore - Johor. CapitaLand Group also announced 2 prominent projects in in February 2013. One project is the joint development of a S$3.2 billion waterfront township on the island of Danga Bay with Temasek Holdings and Malaysia’s Iskandar Waterfront Holdings (IWSB). The Ascott Limited, having been given the green light to manage Somerset Medini Iskandar is another project.
Iskandar has reached a critical mass through completion of major infrastructure and real estate projects in 2012 and Iskandar is no longer a new term.
Given a 5 year timeline, with population shift, industry/business growth, The Astaka will be one of the top choices of residential to rent given proximity/connectivity to Singapore and closeness to nearby amenities. Iskandar Water Front Holding is the "UEM land" of Johor City and will further transform Johor CBD and coastline. Developers who built Mid-Vally has already confirmed another Megamall just 15 minutes drive up Jalan Tebrau. Just beside current JB central shopping mall another mall is due for completion. Mahabuilders have bought the abandoned Pacific Mall just right across the road from The Astaka in 2012 to refurbish. There are many more projects and investments to list.
Disregarding the rental market, another way is to sell off Astaka before TOP which I have done for one of my clients for another project. You can start to market your unit about 6 months before TOP, once a buyer is confirmed a lawyer will be able to draft up an agreement for the property to transact immediately upon TOP (Not yet given MOT so no payment of stamp duty!) Given Astaka's TOP timeline you will be slapped with a 10% RCGT.
Just a quick search, some current comparable Johor rental listing (RM7,000~RM9,000), please note none of these condominiums below has the scale,quality, location and unique features of the Astaka.
Mewah View Luxurious Apartments / RM10,000/ 3,850sqft
Strait View / RM9,000/ 3,000sqft
Wadihana / RM 7,000/ 3,450sqft
Sky Executive Suites / RM12,000/ 2,778sqft
Some links on Johor expat trends on community:
Trends of expats moving to Johor
Expat couples in Johor
Expat buying Johor homes
Expat buying Johor homes
Expat blogger living in Johor
Expat in Singapore sending kids to Malbourough college
News: Expat property market heating up
Johor sees influx of expats
All the above are facts put together and the details are much greater to this, I do believe in the Iskandar project and I hope that you do see the potential of Johor as an economic partner of Singapore.