Residential property boom in Johor Baru

Johor Baru: The prices of residential properties have risen by an average of 40 per cent since 2006, in a city which used to suffer from an overhang of properties.

For example, Casa Almyra, a project by Danga Sdn Bhd, has seen prices go up to RM800,000 from RM450,000 in 2006.

KGV-Lambert Smith Hampton (Johor) Sdn Bhd executive director Samuel Tan said while transaction volume has not been very exciting, value of transactions have grown by leaps and bounds in the Iskandar region.

He said property owners and buyers can expect property prices in Johor Baru to rise by a further 10-20 per cent by end of 2011, on increased costs alone.

The price of commercial land in areas like Jalan Datuk Abdullah Tahir, Danga Bay and Tebrau area have also more than doubled since 2006.

More than half of these buyers are now locals.

"People are land-banking in Johor Baru because they see something in Iskandar Malaysia," Tan said.

Property developers seem to be subscribing to this theory, considering the influx of property developers to Johor Baru.

Established players like SP Setia Bhd have no less than four simultaneous projects in Iskandar, while Bandar Raya Developments Bhd and IOI Properties have also launched major developments.

Some RM28.26 billion property development projects have been approved since 2006.

"If we used to count the number of property developers who are here, now its easier to count those who are not here," Danga Bay Sdn Bhd chief executive officer Datuk Lim Kang Hoo said, adding that the heightened interest has helped revive some 90 per cent of stalled commercial and residential projects in Johor Baru.

Menteri Besar Datuk Abdul Ghani Othman said the spurt in economic activity is a boon for the man in the street, as evidenced by higher wages, improved business opportunities and better living standards.

By Business Times