JOHOR BARU: The outlook for the Johor property market this year is expected to be positive following the economic recovery in Malaysia and Singapore.
Johor Real Estate and Housing Developers Association (Rehda) branch chairman Lee Kim Chai said it was well known that Johor and Singapore had a long history of economic interdependence.
“Johor and Singapore complement each other in economic activities so economic recovery on both sides of the Causeway will bring benefits to both,” he said in an interview with StarBiz.
Lee said the economic recovery meant that consumers’ confidence was returning after a two-year low period following the global recession sparked off by the US subprime crisis and European financial woes.
He said banks were also offering attractive interest rates to house buyers and consumers were spoilt for choice with the numerous home loan packages available in the market.
Lee said Iskandar Malaysia was another main factor that contributed to the positive growth in Johor’s property market as it helped boost demand for houses here.
Iskandar was the first economic corridor launched in the country. Covering 2,217 sq km area in the southernmost part of Johor, it has received RM55.56bil in cumulative investments, of which 60% were foreign direct investments. .
Lee said the stakeholders of Iskandar should be commended for putting in much effort in attracting both local and foreign investors.
“Iskandar is now gaining momentum with many on-going projects by both the public and the private sectors,’’ said Lee.
He said construction of new roads and upgrading of existing roads within Iskandar would improve connectivity and accessibility; benefitting developers.
However, Lee said Johor Rehda wanted the Economic Planning Unit to look into the directive in its Circular dated Jan 1, 2010, that stipulated foreigners were only allowed to buy properties worth RM500,000 each compared with RM250,000 previously. He said the threshold should only apply for properties in the Klang Valley as it could further dampen the property growth in other states such as Johor and Penang.
Lee said the Johor government had already in place for many years a quota system where foreigners could only make up 20% of buyers for double-storey and the semi-detached houses. “Most of the time, the quota is not even filled. With the RM500,000 ruling, we can imagine the situation getting worse,’’ he said.
Lee said developers taking part in the Malaysia Property Expo hoped to rake in sales of RM200mil.
The event at Danga City Mall started yesterday and ends on Sunday.
By The Star
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