Iskandar: Singaporeans make up 90% of buyers in some developments

Living it up in Iskandar region

S'poreans make up 90% of buyers in some developments

THE RECESSION may have made luxury homes here out of reach for many people.

By Vivien Chan

26 May 2009

THE RECESSION may have made luxury homes here out of reach for many people. But up north, at Iskandar Development Region, it's possible to get a resort-style bungalow from about RM1.4 million($580,000). A bungalow with a golf course frontage costs about RM2m at Horizon Hills, while a semi-detached unit costs around RM900,000, according to previous media reports. Horizon Hills is located in Nusajaya, a flagship zone within Iskandar Malaysia. Spanning 1,200 acres, the township comprises 13 precincts with bungalows, semi-detached, cluster and terrace homes. The eco-friendly development, Setia Eco Gardens, is also located in the Iskandar development region. Prices for its Visellia terrace units start from RM414,000. In some developments, Singaporeans make up 90 per cent of buyers. Speaking to The New Paper last week, Mr Harun Johari, CEO of the Iskandar Regional Development Authority (IRDA), said: 'Singaporeans are stretching their dollar by buying such property in Iskandar, which is cheaper than buying it locally.' He said some Singaporeans have snapped up potential 'retirement homes' or 'holiday homes' there. Launched in November 2006 by former Malaysian premier Abdullah Badawi, the 2,217 sq km Iskandar Malaysia project is about three times the size of Singapore, and is expected to be completed in 20 years. Located in Johor, it is expected to become Southern Peninsular Malaysia's most developed region, with its own financial, medical, educational and residential hubs. But property consultant Colin Tan of Chesterton International cautioned against jumping onto the bandwagon too quickly. Mr Tan said: 'The main attraction is obviously the lower prices, but the concern is security, going by the reports of crime in Johor. 'Prices are low for a reason. Once security is enhanced, you can expect prices to rise. If you want to buy, you need to decide if these factors are relevant to you. Proceed with caution.' Mr Harun said that security in Iskandar Malaysia is being looked into, and will be enhanced. In a meeting between Singapore's Prime Minister Lee Hsien Loong and Malaysian Prime Minister Najib Razak on Friday, both leaders discussed the possibilities of developing a wellness centre and an integrated township within Iskandar Malaysia. Mr Harun said that the wellness centre is already one of the clusters in the overall masterplan of Iskandar Malaysia's economic clusters. Commenting on the idea, Mr Tan said: 'The vision is good, but investors must believe that the idea will take off before going in with money.' S'pore a top investor Mr Harun, who was in Singapore for the Cityscape Asia exhibition, said that Singapore is now in third place behind Europe and Japan in terms of investments in IRDA. As an indication, RM750 million worth of investments came from Singapore last year, making up 9.11 per cent of IRDA's total investments. The majority of the Singapore investments come from small and medium enterprises. Mr Harun said: 'They see the opportunity for their businesses to be expanded there. It makes sense because Iskandar Malaysia is so near, just across the Causeway.' Mr Harun said that the development will create between 600,000 and 800,000 jobs over the next 20 years, in the financial, educational, creative, healthcare, tourism and logistics sectors, among others. The jobs are not exclusive to Malaysians. http://forums.delphiforums.com/sunkopitiam/messages?msg=29666.1