Breaking record land prices in Iskandar Malaysia

Johor land prices received historical record high in transaction yesterday. Johor Sultan Ibrahim sold 6 pieces of johor land within Special Economic Zone Iskandar Malaysia with the total land coverage of 116 acres to China Guang Zhou property developer R&F Properties with the total price of RM4.5 billion ( Malaysia Dollar). The land price was transacted at RM890 per square feet, breaking the record of land prices China property developer Country Garden bought for the johor land at Danga Bay with RM363 per square feet.

According to report submitted by R&F Properties to Hong Kong Securities Exchange, it bought the johor land at Iskandar Malaysia with above land prices 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 3 years in four time method.

The Chairman of R&F Properties Mr Li said this is the company first oversea land purchase. He mentioned that Malaysia has large Chinese population and at the same time local government implementing policies that attracting foreign property buyers, so it is very suitable for the company first foray to oversea property market. “Malaysia has strong economic fundamental and supported by huge human population, its property market has strong potential growth.”

Since the launch of Special Economic Zone Iskandar Malaysia and efforts of IRDA, Iskandar Malaysia has successfully attracted many real estate investments in Iskandar development region which supported by surrounding highly developed country like Singapore and strong economic growth and high population country like Indonesia. Since the 2008 economic crisis, the economic weigh highly and shifting from west to east and Iskandar Malaysia attractive and investor friendly environment and policies allow Iskandar Malaysia become a bright star within South East Asia region. 

R&F Properties

Casino in Johor Bahru

The news about Johor going to build resorts casino has spread widely recently. Based on the sources, Malaysia tycoon controlled Berjaya Group will build the casino inside Berjaya Waterfront once obtained the gambling license from government.

Recently Berjaya Group has purchased Johor Bahru Berjaya Waterfront. At this moment Berjaya Waterfront's retail spaces is undergoing construction and renovation. There are the rumors that it is building casino.

Based on insider source, Berjaya Group plan to have a make over renovation for the Berjaya Waterfront retail spaces and hotel, bring in up market branded shops and restaurants, and in future followed by resorts casino comprising of gambling slot machines.

Where is Berjaya Waterfront hotel and retail mall? Well, Berjaya Waterfront is the previously well known The Zone hotel and Free Tax Zone retail mall. Berjaya Waterfront is built alongside seaside of Stulang Laut, and the opposite of the sea is Singapore country. Because it is free tax zone, it draws quite a lot of local and Singaporean to there for alcohol and cigarette and food.

Local Chinese leader and merchant association believe the opening of casino can bring benefit to Johor state government and local people, stimulate the economy and job creation for more job opportunities, but cautious that government must set entry measures to Malaysian to avoid the negative gambling effects arising from casino.

Malaysia small and medium enterprise association leader said that the opening of resorts casino in Johor Bahru can bring domino effects to surrounding property market values to new height and create more job vacancy resulting in huge economic benefits in Iskandar Malaysia developments. However, government must aware of potential social problems arising from the gambling and take preventive measures.

Malaysia financial magazine "The Edge" quoted sources previously said Johor Sultan Ibrahim bought 20% market share of subsidy company of Berjaya Group, Berjaya Asset (BJASSET). Following with the purchase, news widespread about the intention of Vincent Tan, the owner of Berjaya Group is planning to develop large scale resorts casino in Johor Bahru, comprising of gambling slot machines, up market restaurants and branded retail mall to compete for market share from Singapore both Integrated Resort Marina Bay Sands and Resort WorldSentosa.

Berjaya Group

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."