Looking at Iskandar Malaysia (from Alex's perspective)

Now that the GE euphoria has settled, it is time for rational analysis :) So time for me to write more.

Had intended to introduce the flagships one by one, but that you could read it on IRDA's website (Iskandar Development Region Authority)

Instead, I will look at Iskandar Malaysia as 3 concentric circles moving nothwards:
1. Waterfront developments
2. Inland developments
3. Upstate developments

Abandoned building no more!

Remember I mentioned about abandoned buildings and showed a picture of pacific mall, the iconic abandoned building in JB city, well it has been successfully sold off. For those who read chinese, you can find out more in the news article. More importantly, skspavillion is just beside it! Good opportunity, do contact me!

JB properties advertised as condominiums in Woodlands Singapore!!?

I’m not sure how many of you have noticed this, some property agents are advertising properties in JB city as located in Woodlands in Singapore! I understand the online property sites do their daily scrubs but you should still find them Go to any of the online property listing sites to confirm what I say.

Well , JB city centre is just a bridge away from Woodlands so it is understandable that they are treating JB City as a natural extension of Woodlands.

In my opinion, if the rejuvenation of JB City is followed through properly, I do think that JB city can offer a better quality lifestyle, better amenities and maybe better food than in Woodlands. And if that is translated to property prices, it is not hard to imagine that the prices of properties in JB City can surpass those in Woodlands. Also, JB City is a mature area, so any new property supply coming online would likely involve en-bloc redevelopment of existing properties. I think prices should appreciate and if not hold steady.

However, do note that it is always possible for the rejuvenation to be stalled. The risks are best summed up by my Uncles and Aunts from both sides of the causeway “if JB city has stayed in this state for so many years, what makes you think that it is going to change for the better any time soon.”

What’s in vogue? - Medical Hub, Wellness Centre, EduCity

The pictures above are not in Iskandar Malaysia(IM), I took them in the new NUS(National University of Singapore) University Town. Why University towns and Medical centres are taking centre stage in IM? Well, the simple answer to that is you instantaneously get a large captive population that is going to live, work and play in the area.

I like to frequent the NUS university town (I get food at staff rates shh…. ), it is spacious, not crowded and very new. Singapore is known for this sort of infrastructure-driven model. I also remember popping into the food court every now and then at Gleneagles Hospital Singapore during my stay-in when my wife delivered our two girls.

This can be similarly replicated in Iskandar Malaysia, (remember, IM is 3 times that of Singapore). But like I mentioned in “Knowing your Bandars and Tamans”, while this model of town planning has a proven record of being successful, it can take a long time before universities get filled and hospitals get crowded. You can try to shorten that process, but you can’t do away with it.

If you have yet to invest in Singapore, think Singapore first! Areas around NUS is already vibrant, well-connected and in a new commercial belt that will be included in the new Masterplan. Prices range from $800psf to $1600psf(estimated) in the District 5 area. In my opinion, the potential of the Buona Vista, Pasir Panjang and West Coast area is not fully appreciated while the regions on the eastern side of Singapore continues to steal the limelight.

Yes it is a lot more than what you can get in EduCity (estimated RM800-1000psf and rising), but the universities in Nusajaya are hardly more than 2-3 years old and the surroundings are still largely work-in-progress. And while EduCity goes about establishing its reputation, we may have to weather a few more economic cycles before you see the place really take off. Saying that, I would still go into EduCity area if there is a good enough bargain.

I would like to spend a bit more time on Flagship Zone A- JB City and Flagship Zone B- Nusajaya in my later postings. Hope this posting surpasses 150 reads :)

You mean there is no MRT at my doorstep?!! - Small country mindset in big country series

Photo source : pictures taken at Iskandar Waterfront Holdings gallery

You mean there is no MRT at my doorstep?!! - Small country mindset in big country series
There was a huge argument in the coach bus over the location of the MRT stop in JB when I was on a company survey trip yesterday. Property agents will never lose an argument 

While there were many well substantiated guesses, there were many wild, ridiculous guesses as well. But I got my confirmation of the location from the representative from Iskandar Waterfront Holdings (IWH) – this is a government-linked company incorporated to serve as the masterplanner for 4000 acres of waterfront land (in flagship zone A of Iskandar region). This is also where Capitaland will be sinking in RM800 mil(Danga Bay) for a mixed integrated project comprising of landed and high-rise developments. For more information on IWH, please visit their official website. http://www.iskandarwaterfront.com/

The location of the MRT stop in JB is earmarked to be at the previous lorry clearance area. Well, no surprises and I think it makes perfect sense for a straight line extension from Singapore side to Johor Bahru that runs parallel to existing causeway. Why would they even consider elaborate tunneling works or multiple bends/twists just for a MRT stop from Spore and JB. It would also be a complete engineer’s nightmare to maintain a twisty complicated stretch of MRT track, I don’t think any of our train operators are prepared for that!

Now back to the concept of doorstep MRT. Typically in Singapore, you would expect a property located near to the MRT to fetch a 10-15% premium. Not so in Malaysia. Using WorldBank’s statistics, Malaysia has about 360 vehicles per 1000 people, Singapore on the other hand is 149 vehicles per 1000 people. See http://data.worldbank.org/indicator/IS.VEH.NVEH.P3/countries?display=default&cid=DEC_SS_WBGDataEmail_EXT

Cars are a lot more important than public transport in Malaysia and you can see why it is so. The most successful hypermarkets in Johor are the ones that cater for a large car park space (think Aeon Bukit Indah and Aeon Tebrau City). While the building footprint doesn’t have to be very big, it needs to sit on a very large piece of land for carpark purposes. Furthermore, it may not be such a good idea to be located near to MRT stations or train stations because there is a large transient population which makes the particular place especially “complicated”. I learnt this when I asked why there aren’t many multi-storey caparks in Johor 
So ditch that idea of having a doorstep MRT. It is good be close to one, somewhere well-connected with multiple access roads, ample carpark lots and big drop-off areas. Having a doorstep MRT station doesn’t necessarily help with the price of properties in Johor.

Putting the plans together!

Putting the plans together!
Remember I said that the untapped potential of Iskandar Malaysia is just too huge to ignore. Here's what I mean.

1. Everyone is quite familiar with Singapore's Land Use planning till 2030 by URA. An overview of how land will be used beyond 2030 (See Picture)
2. Iskandar Malaysia has also put up a blue print for its integrated Land use. (See picture)

Let me put the 2 together side by side to show you (Pay attention to the legend, where the centres of activity will be located in both places.

Then you decide for yourself if they are aligned. Actually they do!
The reality is that planners on both sides can no longer plan land use in isolation.

Ask yourself a few questions:
a. Where is the concentration of Residential, Commercial & industrial activity in both places?
b. Why Spore Govt is encouraging SMEs to shift base if the cost structure in Johor suits them?
c. Where do you think the High Speed Rail(HSR), MRT link and even the "3rd causeway" should be build?
d. Where are the ports in Johor and in Singapore(new location)?
...

Even if you're not interested in property investment, an understanding of land use in Johor and Singapore tells you the economic shifts, how our careers, our lives, our children's lives will change... more importantly how you should adapt to these changes.

Now do you really need “insider” information?
I will come back to this again in later postings.

Costs involved in purchasing a property in Johor Malaysia

This should be used only as a reference, please seek proper legal and tax advisors on your property transactions.

Immediate / During Purchase
1. Purchase Price (10% downpayment , balance progressive )
Depending on which stage of completion, may have to fork out next stage of payment if already completed during sale.

2. State Consent Fee (Applicable to foreigners only.)
- Johor State Consent (Approval fee- RM10,000, Application fee - RM500)
- Processing time about 3 months

3. Stamp Duty for Sales and Purchase Agreement(SPA)

4. Stamp Duty for Loan Agreement(0.5% of loan)

5. Legal Fee for Sales and Purchase Agreement(SPA)

6. Legal Fee for Loan
 First RM150,000 – 1%
 Next RM850,000 - 0.7%
 Next RM 2,000,000 – 0.6%

7. Disbursement Fee
- include fees for registration of charge, land search and bankruptcy search, etc)


Upon Issue of Certificate of Completion and Compliance (CCC)
a. Stamp Duty (Memorandum of Transfer – MOT/ transfer of title)
b. Registration Fee
c. Legal Fee