Malaysia Budget 2014 and foreigner buy property policy in Iskandar Malaysia

Malaysia government’s last month Malaysia Budget 2014 announcement to increase foreigners buy property in Malaysia entry level raised from 500 thousand Malaysia Dollar to 1 million Malaysia Dollar. However, yesterday on 8 Nov 2013 Johor State government said that government will conditional allow foreigner home buyers in purchasing Johor property under RM1 million.

According to Malaysia Chinese newspaper Sin Chew Daily Newspapers, Johor State Housing and Local Government executitive councillor Datuk Abdul Latiff Bandi mentioned that the new housing developments projects that Johor Legislative Council has approved previously will continue follow the old property purchasing policy, which refer to foreigner home buyers may buy property above Malaysia dollar 500 thousand.

Latiff Bandi attended to Malaysia Johor Real Estate and Housing Developers Association (REDHA) held’s Malaysia Housing Expo (MAPEX) and express this after being asked following the expo exhibition.

According to Malaysia Budget 2014 release last month, the plan list down that foreigner who buy property in Malaysia must purchase RM1 million and above with effective 1 Jan 2013 and the foreigner levy will be adjusted from current 10 thousand to 2% of the property price which will take effective at 1 May 2014.

Following the Malaysia Budget 2014 announcement, Johor state government is reviewing property ownership policies for overseas home buyers looking to invest in the Iskandar Malaysia areas. Property market in Iskandar Malaysia has been doubling within this few years seeing the successfully of capital in flow of real estate investments attracted by government business friendly and tax incentives given to foreign companies and corporate to set up their businesses in Iskandar Malaysia region.

Few property developer mentioned that foreigner who buy property in Johor is not many and within 10% only. This is mainly because government has other restriction in place that is reason why speculation on Johor property market is not obvious. Property developer said that they wouldn’t build over million new property to purposely available for foreigner as such property market and demand for foreigner is limited.

Malaysia Budget 2014

Johor land price in historical record high

Johor land price fetch historical new high in transaction yesterday 10 Dec 2013. Johor Sultan sold 6 pieces of land within Special Economic Zone Iskandar Malaysia with the total land coverage of 16 acres to China developer R&F Properties in record price of RM4.5 billion. The land price was transacted at RM890 per square feet, breaking the record of previous China developer Country Garden that bought the land at Danga Bay with RM363 per square feet early this year January 2013.

According to report submitted by the Guang Zhou developer R&F Properties to Hong Kong Securities Exchange, it bought the land in Iskandar Malaysia with RM4.5 billion after negotiation with Johor Sultan Ibrahim. Report said R&F Properties will pay RM100 million as down payment, and the remaining payment will be paid within following three years in four time method.

The Chairman of R&F Properties Mr Li said this is the company first foray to properties market oversea. and first oversea land purchase. He has confidence to Malaysia property market. He mentioned that Malaysia has huge Chinese population and current government policies to Special Economic Zone Iskandar Malaysia has great opportunities and benefits in offer and attracting foreign investor and oversea buyers. So, this is very suitable for the company expansion and first foray to oversea market. "Malaysia has strong economic fundamental and supported by large human population and rather high birth rate, its property market has strong growth potential."

Singaporeans top foreign property buyers in UEM Iskandar project

Recently newspaper reveals that Singaporeans accounted for 74 percent of total foreign property buyers in UEM’s Iskandar project. The rest of 26 percent Iskandar project property buyers are from Indonesia, China, Japan and Korea.

Based on the UEM CEO Wan Abdullah Wan Ibrahim, most Singaporean property buyers are those who always go Johor Bahru for business purpose and people who always spend weekend at Johor Bahru for shopping, food, and vacation or staycation. Singapore property buyers more to buy up market new launch property in Iskandar Malaysia, and landed property and luxury condo near to Singapore is their top choices.

UEM is the main property developer in Nusajaya, Flagship B at Iskandar Malaysia. East Ledang is one of the earliest new housing developments by UEM in Nusajaya area. East Ledang covers bungalow and villas. There are several new property launch developed by UEM at Puteri Harbour.

The high numbers of real estate investments flocking in to Iskandar Malaysia have been push up Iskandar Malaysia property prices to a new height since 2011. East Ledang bungalow resale market has shoot up more than 40 percent since 2011 and still going up. It has been very sought after by Singaporeans and Malaysian that worked in Singapore. In Singapore, a landed property at least price in at 2 million above in Singapore dollars. Yet, it is not a bungalow. East Ledang provides the alternative for them to enjoy the luxury of bungalow and landed property yet at lowest property prices compare to Singapore property prices.

East Ledang

Nusajaya Master Property developer UEM

New Theme Parks in Iskandar Malaysia

New Theme Parks in Iskandar Malaysia

Iskandar Malaysia IRDA CEO Iswan said recently on 8 Nov that the authority is in the progress of seeking foreign investment from Europe Theme Park and North America Theme Park players to have their businesses setup in Iskandar Malaysia. In order to balance the development at Iskandar Malaysia area, new theme park location need to be and will be located at Mersing, Desaru or Kulai.

Iswan replied after attended to Iskandar eco-tourism submit. New theme park can be setup at area outside of Iskandar Malaysia, example like Mersing because if too many theme parks located in same location, it is inappropriate in businesses context and strategy. We will make sure transport connectivity within these theme parks accessible easily and well connected.

Iskandar IRDA CEO Iswan also noted that the new theme parks targeting to adults customers given that currently Legoland and Sandrio Hello Kitty theme park already cater and targeted customers of ages from 3 years old to 11 years old. Therefore the IRDA hopes that the new theme parks to attract customers of different range of ages.

Iswan doesn’t disclose the theme parks they are negotiated with. In the current stage, Iskandar Malaysia already has Legoland from Denmark, Sandrio Hello Kitty from Japan, and the Angry Bird theme park from Finland which will be operated next year May at JBCC, Iskandar Flagship A Johor Bahru.

There do have newspaper release previously stated that Six Flag, which headquarter in America New York plan to have their first Asia theme park foray in Iskandar area. In the near future, we can expect that Iskandar Malaysia as a new Special Economic Zone in Malaysia with Johor State government dedication to transform and attract foreign direct investment to establish their businesses present here, and its strategic location next to rich and advanced country Singapore just separated by a causeway, Iskandar Malaysia will become brilliant and vibrant city in international standing. The model of Hong Kong-Shenzhen and Macau-Zhuhai will find its similarity at Singapore - Iskandar Malaysia.

Legoland Theme Park

Sanrio Hello Kitty Theme Park

Sanrio Hello Kitty Theme Park