The Iskandar Property Census research that tracks high-rise residential units in Iskandar Malaysia since 2012 released its latest 2020Q3 result that shows a price drop of 8.9 percent year-on-year to RM573,931or RM577psf.
Puteri Harbour area recorded the highest price at RM979,125 or RM888psf followed by JB CIQ at RM836,125 or RM921psf. JB Inner City saw median price at RM694,749 or RM595psf, JB Outer City at RM394,266 (RM423psf) , Danga Bay at RM648,500 (RM534psf), Iskandar Puteri RM434,714 (RM491psf) , Medini RM645,598 (RM773psf) and Tebrau Coast RM494,520 (RM491psf).
Jerren Lai, Head of Research at Datamine Malaysia said, “The pandemic ravaged the already weak market that saw five in eight areas recorded a price drop. The anticipated RTS confirmation between Singapore and Johor Malaysia in quarter three kept asking prices alleviated for JB CIQ area.
The highest median-priced property in JB CIQ area is Suasana at RM1,320,000 or RM1350psf and Tri Tower at RM1,180,000 or RM1253psf while the lowest are Skysuites at RM635psf and V Summerplace at RM748psf. Properties in JB CIQ area are defined as those within 15-minute walking distance to the CIQ hub, the gateway into Singapore.
On a positive note, Lai forecasts that JB CIQ median price will likely hit 30 percent below Singapore Woodlands private property prices upon completion of the RTS. Singapore Woodlands median price stands at SGD799psf or RM2400psf (based on RM3:SGD1) computed from the latest Urban Redevelopment Authority (Singapore URA 2020) source. This translates to a forecast price for JB CIQ at RM1700psf.
Lai adds a caution note, “This forecast depends on the efficiency of the new RTS immigration clearance system. From Woodlands North to Orchard area, it takes only 36 minutes on the upcoming Thompson MRT line. If immigration clearance and the 4km journey from JB CIQ to Woodland North takes around 25 minutes, then Singapore demand will overwhelm Iskandar properties if it takes around one hour from JB to reach Orchard area.”
Lai expressed disappointment that the decision-makers have chosen the LRT option instead of the higher capacity MRT using Singapore’s existing trains due to cost consideration. He said, “Infrastructure of this nature drives demand that not only solves the housing glut but opens the floodgate for the Singapore dollar spenders to flow into Iskandar which has an enormous multiplier effect on the economy. From Grab drivers to golf course operators, manicure, and street food operators… everyone knows our Char Kuey Teow tastes better!” Lai quipped.