/// Hot Topic
/// HOT TOPIC
Cautiously Optimistic Outlook
with Property Developers in Iskandar
Expecting Tough 2014
over the years and emerged
stronger. Koh said that speculators
would be phased out gradually
from the property market with the
implementation of the measures
with owner-occupier buyers
dominating the market. “This year’s
launches will see between 100 and
200 units with more developers
opting for landed houses as
demand for them is still strong in
Iskandar,’’ he said.
KGV International Property
Consultants (M) Sdn Bhd director
Samuel Tan Wee Cheng concurred
with Koh that the market would see
more serious buyers.
The “feel-good” factor that was
prevalent in 2012 and 2013 for
the property market in Iskander
Malaysia is unlikely to continue this
year following property cooling
measures introduced by the
Government in the last quarter of
last year.
sidelined and denied from owning
houses.
Property developers are rather
cautiously optimistic on the
market outlook for 2014 and are
anticipating it to be a tough year for
many.
He said these members raked in a
combined RM3 billion in sales over a
one-month period.
Johor Real Estate and Housing
Developers Association (REHDA)
branch chairman Koh Moo Hing
said the Year of the Horse would
be more challenging and that
developers must be well-prepared
to face the worst.
Koh said 2013 was the best year for
30 odd members of Johor REHDA
who participated in the Malaysian
Property Exposition (MAPEX) held
here in May and November.
“It would an achievement if they
could repeat the sales figure again
for this year’s events,” he added.
The 30-day period starting from the
first day of MAPEX is the benchmark
used by REHDA to determine the
value of sales by participating
developers.
“I assume that many of our
members will adopt the wait-andsee approach in the first-quarter of
2014, to see the real impact from
the (property cooling) measures,’’
Koh told StarBiz.
“Johor MAPEX to be held in April
will give a clearer picture on the
Iskandar property outlook and how
developers are coping with the
uncertainties and challenges,’’ said
Koh.
He said the measures were not
something new as other countries
would also resort to similar
measures to ensure locals were not
He said developers would be ready
to face the tough year ahead and
adapt well as they had experienced
the ups and downs in the industry
88
www.PropertyHunter.com.my
He said if this could prompt
developers to lower the selling
prices of their new launches to
attract potential buyers and also
offer no-frills houses to cut costs.
S P Setia Bhd divisional general
manager Hoe Mee Ling said many
uncertainties in both global and
domestic market might affect the
property market in the first-half of
2014.
But he said buyers would be more
cautious on the new policies – the
real property gains tax (RPGT)
and the hike in ceiling price from
RM500,000 to RM1 million for
foreign property buyers.
“Prices of houses will continue to
go up this year, determined by the
policies and escalating costs of
labour and building materials,’’ said
Tan.
He said it was matter of time buyers
especially first-time house owners
decided whether to continue waiting
or make the kill before the prices
move up north.
Tan said if the prices continued
to go up, more buyers would go
for the secondary market where
prices were between 20% and
3 0% cheaper compared with new
launches.
“For instance, the average selling
price for a new double-storey link
house in Iskandar is RM800,000 per
unit, but if you look around in the
secondary market, you’ll be paying
RM600,000 for it,’’ he said.
Tan said landed houses in the
secondary market came with
generous land size and bigger floor
area plus ready amenities and
facilities within the neighbourhood
or the development.
Tan said foreign buyers would
continue to buy properties in
Medini, Nusajaya as there was no
restriction to foreign ownership in
the area and they were not subject
to the RPGT regime.
She said among the issues were
the pressure of increasing costs as
a result of skilled labour shortage,
reduction in subsidies beginning
with petrol last September and
electricity tariff adjustment in 2014
and policy changes.
“However, challenges always come
with opportunities and there are
still positive factors in the Iskandar
property market,’’ said Hoe.
She said the fundamental demand
for properties in Iskandar would
remain high and strong as long as
developers could adapt to their
products to suit this demand.
Hoe said the outlook was still good
as properties fetched good yields
and were the best hedge against
inflation.