Forward is the direction of the state’s property market, regardless of ebbs and flows.

MEDIA reports have indicated challenges in the Johor property market, but the convergence of factors such as the development of excellent accessibility infrastructure and world-class iconic waterfront projects will drive Johor’s economy in the future.

Iskandar Waterfront Holdings group executive vice chairman Tan Sri Datuk Lim Kang Hoo shared the property market is cyclical with its ebbs and flows. Such events provide opportunities for various parties to benefit.

When the market is on the upside, it provides opportunities for more development. In contrast, when the market is on a downturn, it provides opportunities for those who seek good bargains.

“I don’t think there is any glut in Johor, as exaggerated by some of the media. As you can see, there are no abandoned developments in Johor. All the abandoned ones have been taken over for redevelopment and refurbishment,” Lim commented.

After the 1997 Asian financial crisis, developers have learned when to launch and when to hold back. When they enter the Johor property market, they would have obtained an early bird price, so they can wait for the right time in the property market cycle to develop their projects’ next phases.

“Thanks to the good effort of our Royalty, the federal and the state government of Johor, this is a very good sign of responsible development. All these wouldn’t happen without the ups and downs of the market,” Lim added.

“When there is an upturn, redevelopment can happen since there is demand for property products. When there’s a downturn, it gives opportunities for developers to absorb these abandoned projects at a bargain,” Lim said.

Foreign investments create local jobs
There is scepticism that the flow of Chinese investment into Johor would benefit the local community.

However, from a long-term and international perspective, foreigners have seen and believed in successful waterfront developments. This is a major reason that has attracted the Chinese to invest in Johor’s waterfront development, apart from the fact that it strategically faces Singapore.

“We can’t merely depend on the local market for our development, especially waterfront development, because it is not very common in Malaysia. With them coming in, they will also bring in the skills, funds and experience from abroad, benefiting local development,” Lim said.

Locals will benefit as they will learn new skills and gain experiences as these developments would create and increase job opportunities for the locals.

The government has granted tax incentives to investors who are investing in Iskandar Malaysia, including real property gains tax (RPGT) and income tax waivers. The joint effort between Iskandar Waterfront Holdings and the Government will bring Johor to a whole new level, and result in Johor Baru becoming a vibrant, modern and advanced city.

Similar to the Hong Kong-Shenzhen model, where two financial centres are one hour away from each other by car transportation, the same scenario could happen to Johor Baru and Singapore, when the development is well planned with the government.

“Our master plan is to build an urban waterfront city in Johor Baru. Our aim is to attract foreign direct investment (FDI) to invest and be based in Johor Baru instead of Singapore. With prices many times cheaper than Singapore and with abundant land, Johor Bahru definitely has the potential to achieve that,” said Lim.

“We should not be worried about foreigners pouring money into our country and Iskandar Malaysia. We should welcome anybody that is willing to come and invest here. They are here to do business and develop the economic corridor with us, so that we attract FDI and stop the brain drain which will eventually benefit our local Johorians,” Lim added.

Building for future generations
When compared to other countries in the South East Asian region, Malaysia is considered one of the best places to settle in, as it is stable politically, has plentiful natural resources, multilingual education and has a strategic geographical location.

These characteristics make Malaysia attractive to expatriates and foreign investors, who would want to be here for their children’s education, job opportunities, retirement and lifestyle among others.

With Johor Baru located next to Singapore, the state would attract residents that work in Singapore and live in the city. Such working arrangements would enable residents to maximise their savings as they would reduce their expenses by many times, on the basis that their income would be denominated in Singapore dollars and their expenses would be in ringgit Malaysia.

Expatriates would also choose to reside in Johor Baru as they would benefit by living in a spacious and less congested living environment.

With the flow of foreign investments into Johor Baru, there will also benefit the professionals, technicians and students going into the city to work, live and play, thus stopping the brain drain in Malaysia.

These developments will transform Johor Baru into an urban waterfront city facing Singapore and eventually improve the quality of life for the local community.

“That spillover will sustain the economy of Johor and Iskandar Malaysia,” Lim concluded.

Visit StarProperty.my Fair 2016 at JB City Square, level 1, from July 22 to 24 (Friday to Sunday), 10am to 10pm to browse through interesting projects in Iskandar Malaysia. 

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