Iskandar Malaysia
During our recent visit to Iskandar Malaysia, we were pleasantly surprised by the strong 65% bookings for UEM Land Holdings Bhd’s Imperia@Puteri Harbour condos launched in November 2011 at a record RM725 per sq ft (comparable with suburban condominiums in Kuala Lumpur).
Impiana@East Ledang condos also saw brisk sales with two blocks almost fully sold within six months at RM480 psf (against RM300 psf for the adjacent Ujana apartments launched in 2009). Southern Industrial and Logistics Clusters (SiLC) industrial land values continued to appreciate with the latest transactions hitting RM35 psf against 2010’s RM25 psf.
For S P Setia Bhd, Johor remains a core market (29% of sales) with sales surging 57% in FY11.
Since its launch in December 2011, the Johor Premium Outlets (JPO) has been seeing strong crowds, especially during weekends (locals and Singaporeans). About 90% of Phase 1’s 70 stores are operational (Coach, Ferragamo, Burberry, Levis, Guess) while the rest are being fitted out (Polo Ralph Lauren, Tommy Hilfiger, Brooks Brothers).
Discounts range from 30% to 60% (a tad better than Singapore sales). Accessibility to JPO is good (10 minutes from Senai Airport via a dedicated interchange) with clear signs.
However, the food court is small and car park pay machines are limited. JPO’s size pales in comparison with similar outlets in the US, Japan and Hong Kong, but Phase 2 could see another 60 outlets (130 in total).
Future development may also include a 2,000-room hotel and water theme park. Genting Plantations Bhd will be the largest beneficiary given its 2,226ha in Kulai — every RM5 psf increase (from RM10 psf assumed) would raise its sum-of-parts value by 10%.
Iskandar is set to reach its tipping point in 2012/13 following the completion of key catalyst developments and infrastructure improvements.
The recent Malaysia-Singapore leaders’ retreat saw continued improvement in bilateral ties (including plans to build an underground link for a rapid transit system by 2018).
The entry of more developers (Temasek Holdings, Sunway and China’s Zhuoda Group in Medini, Bandar Raya Developments Bhd in Nusajaya, Dijaya Corp Bhd in Danga Bay) should help expedite Iskandar’s overall development progress.
We believe Singapore’s stubbornly high property prices and latest stamp duty hike could lead to spillover demand for Iskandar properties. — HwangDBS Vickers Research, Jan 16
This article appeared in The Edge Financial Daily, January 17, 2012.
During our recent visit to Iskandar Malaysia, we were pleasantly surprised by the strong 65% bookings for UEM Land Holdings Bhd’s Imperia@Puteri Harbour condos launched in November 2011 at a record RM725 per sq ft (comparable with suburban condominiums in Kuala Lumpur).
Impiana@East Ledang condos also saw brisk sales with two blocks almost fully sold within six months at RM480 psf (against RM300 psf for the adjacent Ujana apartments launched in 2009). Southern Industrial and Logistics Clusters (SiLC) industrial land values continued to appreciate with the latest transactions hitting RM35 psf against 2010’s RM25 psf.
For S P Setia Bhd, Johor remains a core market (29% of sales) with sales surging 57% in FY11.
Since its launch in December 2011, the Johor Premium Outlets (JPO) has been seeing strong crowds, especially during weekends (locals and Singaporeans). About 90% of Phase 1’s 70 stores are operational (Coach, Ferragamo, Burberry, Levis, Guess) while the rest are being fitted out (Polo Ralph Lauren, Tommy Hilfiger, Brooks Brothers).
Discounts range from 30% to 60% (a tad better than Singapore sales). Accessibility to JPO is good (10 minutes from Senai Airport via a dedicated interchange) with clear signs.
However, the food court is small and car park pay machines are limited. JPO’s size pales in comparison with similar outlets in the US, Japan and Hong Kong, but Phase 2 could see another 60 outlets (130 in total).
Future development may also include a 2,000-room hotel and water theme park. Genting Plantations Bhd will be the largest beneficiary given its 2,226ha in Kulai — every RM5 psf increase (from RM10 psf assumed) would raise its sum-of-parts value by 10%.
Iskandar is set to reach its tipping point in 2012/13 following the completion of key catalyst developments and infrastructure improvements.
The recent Malaysia-Singapore leaders’ retreat saw continued improvement in bilateral ties (including plans to build an underground link for a rapid transit system by 2018).
The entry of more developers (Temasek Holdings, Sunway and China’s Zhuoda Group in Medini, Bandar Raya Developments Bhd in Nusajaya, Dijaya Corp Bhd in Danga Bay) should help expedite Iskandar’s overall development progress.
We believe Singapore’s stubbornly high property prices and latest stamp duty hike could lead to spillover demand for Iskandar properties. — HwangDBS Vickers Research, Jan 16
This article appeared in The Edge Financial Daily, January 17, 2012.
