Iskandar Investment Bhd president cum chief executive officer Datuk Syed Mohamed Ibrahim said locations that did not have immediate development potential would have better capacity and capital value with the completion of infrastructure projects such as highways.
He said the average price of a high-rise residential unit, which has not risen much in the last 10 years, hovering in the region of RM300 to RM350 per sq ft (psf), was now seeing higher prices.
Syed Mohamed said when UEM Land Holdings Bhd launched their first waterfront project and Imperia (condominium), the value of the unit was about RM750 psf.
“Following this success, Dijaya Corp Bhd launched their project near Danga Bay at an average of RM650 psf,” he said, indicating that capital value of real estate in Nusajaya had appreciated. “It is not true that there is an oversupply of residential properties in Johor. (Otherwise) these developers would not achieve this kind of success.”
“The upside potential is just the prices alone. When you develop, you are assured of a good take-up (rate) of all your products. With better infrastructure, you will be able to fetch a premium of the prices of your products,” Syed Mohamed said after a signing ceremony between Iskandar Investment Bhd's subsidiary, Medini Iskandar Malaysia Sdn Bhd and Qingdao Zhuoyuan Investment Holding's Square Stone Holdings Sdn Bhd to build high-end condominium with an estimated gross development value (GDV) of RM2.6bil.
The high-rise property proposed to be known as Medini International starts from an average price of RM750 psf targeting buyers from Singapore, China, Malaysia, Japan and Korea.
The joint-venture company Zhouyuan Iskandar Sdn Bhd would develop the project in three different phases. Phase one and two covers a 16-acre land that is estimated to be completed within seven years. The project would take off at the end of this year.
Meanwhile, Zhuoyuan will be the sole developer of phase three with an estimated GDV of RM1.5bil.
Square Stone Holdings Sdn Bhd and Zhuoyuan Iskandar Sdn Bhd chief executive officer Wang Bin Wu said it was Zhuoyuan maiden foreign venture and the China company was attracted to incentives such as tax exemption and no sales restriction to foreigners to invest in Iskandar.
“We are also fascinated with the presence of catalytic projects like Legoland and EduCity which would add value to the entire development,” Wang added.
By The Star
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