KUALA LUMPUR (April 14): In a note today, Maybank IB Research said property transactions in Johor had plummeted 33% q-o-q in 4Q14, underperforming the country (-7%) and other major cities/states such as Kuala Lumpur (-12%), Selangor (+2%) and Penang (+8%).
“At the same time, Johor property prices have weakened 1% q-o-q versus Malaysia’s -0.2%, KL’s -0.9%, Selangor’s -0.1% and Penang’s -0.3%,” it said.
The research house said developers from China had been aggressively accumulating landbank in Iskandar Malaysia (IM).
It said Shanghai-based developer Greenland Holdings Group recently acquired 128 acres of freehold land in the south of Bandar Baru Permas Jaya while Country Garden had received the green light from the Department of Environment to continue its massive reclamation of 3,425 acres of the Forest City project near the second link.
Maybank IB Research said Malaysian developers had scaled back their launches/shifted their product mix to avoid direct competition with the Chinese developers.
It said the former’s sales expectations for their IM projects had also been lowered.
“Judging from the number of approved high-rise projects, the Iskandar property market could be hit by too much supply of high-rise mixed development projects if there is still no coordinated planning and control; this will induce price volatility.
“The oversupply situation will be exacerbated by the huge incoming supply in 2015/2016 where units under construction have risen 18% y-o-y in 2012 and 2013,” it said.
TOP PICKS BY EDGEPROP
Architectural Designed Bungalow
Kenny Hills (Bukit Tunku), Kuala Lumpur
Taman Sains Teknologi, Kota Damansara
Petaling Jaya, Selangor
Paramount Garden (Taman Paramount)
Petaling Jaya, Selangor
Ritz Residence, Taman Bukit Serdang
Seri Kembangan, Selangor
Ritz Residence, Taman Bukit Serdang
Seri Kembangan, Selangor
Taman Perindustrian Putra Permai
Seri Kembangan, Selangor
The Maisons, Perdana Lakeview East
Cyberjaya, Selangor
Taman Industrial Sungai Buloh (TSB Commercial Centre)
Shah Alam, Selangor
MEGAN AVENUE II JALAN YAP KWAN SENG
KL City, Kuala Lumpur