{"id":36220,"date":"2016-11-28T14:37:09","date_gmt":"2016-11-28T07:37:09","guid":{"rendered":"http:\/\/www.siamlandbank.com\/propertynews\/property-news\/this-usd100-billion-city-near-singapore-scares-the-hell-out-of-everybody\/"},"modified":"2016-11-28T14:54:44","modified_gmt":"2016-11-28T07:54:44","slug":"this-usd100-billion-city-near-singapore-scares-the-hell-out-of-everybody","status":"publish","type":"post","link":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/this-usd100-billion-city-near-singapore-scares-the-hell-out-of-everybody\/","title":{"rendered":"This USD100 billion city near Singapore \u201cscares the hell out of everybody\u201d"},"content":{"rendered":"


\nChinese developers are swamping the market
\nJohor Bahru, Malaysia. Hamdi Bin Zainal\/Shutterstock
\nRather than join the fierce, oft-expensive competition for land in Singapore, Chinese property developers are on a building spree outside the city-state, close to the Malaysian border. Companies such as Country Garden, Greenland Group, and Guangzhou R&F Properties Co have set their sights on Iskandar in the hopes that the Malaysian economic growth corridor would be the next Shenzhen, an economic success story near Hong Kong.
\nAlthough the take-up has been decent for Iskandar developments \u2014 8,000 apartments have been sold in Country Garden\u2019s massive Forest City project in Johor state so far \u2014 the concerns of a glut are all too real to some experts.
\n\u201cThese Chinese players build by the thousands at one go, and they scare the hell out of everybody,\u201d Siva Shanker, head of investments at Axis-REIT Managers, told Bloomberg. \u201cGod only knows who is going to buy all these units, and when it\u2019s completed, the bigger question is, who is going to stay in them?\u201d
\nMore: Iskandar Malaysia\u2019s new multi-billion dollar eco-city is pretty ambitious
\nInvestment growth in Malaysia stood at 2 percent year-on-year in the third quarter, compared with 6 percent in the previous quarter, Bloomberg reported. Residential sales values in the country dwindled by almost 11 percent last year, with the drop in the city of Johor Bahru alone recorded at 32 percent, government data showed.
\n\u201cI am very concerned because the market is joined at the hip, if Johor goes down, the rest of Malaysia would follow,\u201d said Shanker. \u201cIf the developers stop building today, I think it would take 10 years for the condos to fill up the current supply. But they won\u2019t stop.\u201d
\nThere are now more than 350,000 private homes in the pipeline for Johor state, according to Bloomberg, citing data from the National Property Information Centre.
\n\u201cLand is plentiful and cheap,\u201d said Alan Cheong, senior director of research & consultancy at Savills Singapore. \u201cBut buyers don\u2019t understand how real estate values play out when there is no shortage of land.\u201d
\nRead next: 10 reasons why you should invest in Iskandar Malaysia
\n
\nSource : property-report.com
\nRead more…This USD100 billion city near Singapore \u201cscares the hell out of everybody\u201d<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

Chinese developers are swamping the market Johor Bahru, Malaysia. Hamdi Bin Zainal\/Shutterstock Rather than join...<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"false","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"spay_email":"","footnotes":"","jetpack_publicize_message":"","jetpack_is_tweetstorm":false,"jetpack_publicize_feature_enabled":true},"categories":[1],"tags":[],"class_list":["post-36220","post","type-post","status-publish","format-standard","hentry","category-property-news"],"jetpack_featured_media_url":"","jetpack_publicize_connections":[],"jetpack_sharing_enabled":true,"jetpack_shortlink":"https:\/\/wp.me\/p75ss1-9qc","jetpack-related-posts":[{"id":37426,"url":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/iskandar-malaysia-is-not-oversupplied-says-johor-prince\/","url_meta":{"origin":36220,"position":0},"title":"Iskandar Malaysia is not oversupplied, says Johor prince","date":"December 8, 2016","format":false,"excerpt":"\r Just wait and see how the growth corridor will look like in 9 years Float parade in Danga Bay, the largest recreational park in Johor, Malaysia. tristan tan \/ Shutterstock.com Johor Crown Prince Tunku Ismail Ibrahim downplayed speculation that Iskandar Malaysia, the expansive economic growth corridor near the Singaporean\u2026","rel":"","context":"In "Property News"","img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":22490,"url":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/10-reasons-why-you-should-invest-in-iskandar-malaysia\/","url_meta":{"origin":36220,"position":1},"title":"10 reasons why you should invest in Iskandar Malaysia","date":"August 10, 2016","format":false,"excerpt":"\r Real estate author\u00a0Khalil Adis\u00a0lists his top 10 here Aerial view of Senibong Cove with the Straits of Johor and Sembawang Shipyard at the backdrop. 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Chartered surveyor Ernest Cheong is worried that there would\u2026","rel":"","context":"In "Property News"","img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":21582,"url":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/forest-city-luxury-utopia-or-ecological-disaster\/","url_meta":{"origin":36220,"position":3},"title":"Forest City: Luxury utopia or ecological disaster?","date":"August 1, 2016","format":false,"excerpt":"\r Environmentalists protest the \u201ceco-city,\u201d which ironically entails ambitious land reclamation and may destroy marine ecosystems Sultan Iskandar Customs, Immigration and Quarantine Complex in Johor Bahru. Image credit: Stefan Fussan (Flickr) A planned Malaysian city near Singapore may not live up to its \u201cliveable eco-city\u201d billing after all. Environmentalists are\u2026","rel":"","context":"In "Property News"","img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":41254,"url":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/landed-home-values-in-iskandar-malaysia-to-stabilise-this-year\/","url_meta":{"origin":36220,"position":4},"title":"Landed home values in Iskandar Malaysia to stabilise this year","date":"January 20, 2017","format":false,"excerpt":"\r Is the worst over? Iskandar Malaysia covers Johor Bahru, one of the biggest cities in Malaysia. AhXiong\/Shutterstock Landed residences could offer a sliver of hope to the embattled property market in Iskandar Malaysia, the vast economic growth corridor in the state of Johor with thousands of condominiums under development.\u2026","rel":"","context":"In "Property News"","img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":35628,"url":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/malaysian-developers-turn-to-foreign-investors\/","url_meta":{"origin":36220,"position":5},"title":"Malaysian developers turn to foreign investors","date":"November 24, 2016","format":false,"excerpt":"\r The big woo-athon for overseas buyers begins A weak ringgit, growing oversupply and slow local sales saw developers courting foreign buyers, sending their agents to road shows abroad to promote their projects. 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