By Arno Maierbrugger
SINGAPORE: Singapore real estate buyers, driven by rising prices in the island republic, are increasingly looking into property in Iskandar, the main southern development corridor in Johor.
Real estate agents say that prices have already reached highs at as much as RM500,000 over bank valuations.
Buyers are speculating on further appreciations after the planned intercity rail link between Iskandar and Singapore as well as the high-speed rail between Kuala Lumpur and Singapore which will stop at the Johor economic hub.
Iskandar’s rise is driven by top-notch developments by property giants such as CapitaLand and Temasek Holding as well as latest projects such as Motorsports City and the Medini mixed development.
Owners are reportedly selling their Iskandar properties at hefty premiums, with asking prices far above bank valuations, raising fears that Malaysian buyers are getting squeezed out by wealthier Singaporean investors.
Iskandar Malaysia has so far attracted over US$1.87 billion (RM 5.51 bil) from Singapore firms.
The entire development is split in “flagship zones”, which comprise Johor Bahru City Center, including a new financial district, a new Johor state administrative centre,a tourism resort, a medical hub, industrial cluster, a new port, an airport and a technology hub.