The uncertainties caused by negative external news and the concern of a possible oversupply of residential units in Johor Bahru has caused the high-rise sector to continue to cool, according to real estate firm Knight Frank in its latest market report on the area.
It reported there has been a significant reduction in the number of new property launches, especially for the high-rise residential sector however some of the notable residential launches are listed below.
In the second half of 2015 Sunway Iskandar pre-launched 222 units of Emerald Residence (pictured) in Zone F of Medini, Nusajaya. The project comprises linked houses with built-up areas ranging from 1,919 sq ft to 2,439 sq ft, selling from RM 888,000 per unit, superlink houses with built-up areas ranging from 2,681 sq ft to 3,166 sq ft, selling from RM1.3 million per unit and semi-detached houses with built-up areas ranging from 3,927 sq ft to 4,290 sq ft and selling from RM 2.3 million per unit.
Shama Medini, a buy-to-lease serviced apartments on a 5.03-acre integrated development, UMCity Medini Lakeside in Medini by UMLand, will offer 196 units of fully-furnished apartments. It will be managed and operated by Thailand-based hospitality assets management company ONYX Hospitality Group. Units are available in four layouts ranging from 583 sq ft to 1,192 sq ft, with average selling prices at RM 1,300 per sq ft. UMLand also targets to launch Citadines, a serviced apartment managed by ONYX Hospitality Group within the mixed development UMCity at Medini Lakeside by early 2016.
Ramada Encore Meridin, is a two-block of buy-to-lease serviced apartments with a total of 622 units within the mixed-use development of The Meridin at Medini, Nusajaya. The developer, Mah Sing Group, has signed a franchise agreement with Wyndham Hotel Asia-Pacific to procure the Ramada Brand System for these serviced apartments, and it will be operated by Topotels Sdn Bhd. The hotel suites featuring studio, one- and two-bedroom units ranging from 318 sq ft to 885 sq ft are targeted to be operational by 2018.
IJM Land Bhd’s has launched its new township project, Austin Duta. The 250-acre project will be developed in 12 phases. The first phase, offering 183 units of double-storey terraced houses with dimension of 24ft by 70ft and a typical built-up area of 2,150 sq ft, has achieved a take-up rate of 60 percent. Selling pricex start from RM 650,000 per unit
ARC @ Austin Hills, a high-rise apartment project jointly developed by Andaman Group and Majlis Bandaraya Johor Bahru is located on a 5.11-acre plot in Mount Austin. The project features three blocks comprising a total of 1,843 units. The first two blocks have achieved circa 50 percent sales since its launch in mid-2015, whilst the third block is scheduled for launch this month. The ARC @ Austin Hills offers two- and three-bedroom units with sizes ranging from 650 sq ft to 900 sq ft, priced at RM 420 per sq ft on average.
UEM Sunrise launched Phase 1 of Estuari in Puteri Harbour, Nusajaya in early August 2015. Phase 1 of the project consists of 350 units of double-storey superlink houses with built-up areas ranging from 2,708 sq ft to 3,780 sq ft. Prices start from RM 1.39 million per unit.
BCB Berhad has also launched Elysia Park Residences. The project, on 7.82 acres of leasehold land in Medini, features a 4.8-acre Mahkota Park. Phase 1, with three blocks, offers 355 units in eight configurations sized from 516 sq ft to 1,252 sq ft. Prices range from RM 480,000 to RM 1.1 million.
Eco Tropics sits on a 303.5-hectare site located at Kota Masai, Pasir Gudang. It is being developed by EcoWorld and has an estimated GDV of RM 3.4 billion. Phase 1 offers 558 units of double-storey terraced houses with a typical built-up area of about 1,700 sq ft, selling from RM 460,000 per unit and 500 units of double-storey cluster houses with built-ups of 2,200 sq ft to 2,700 sq ft, priced from RM 620,000.
A joint venture company between Kuok Group, Khazanah Nasional Berhad and PPB Group Berhad has launched the Southern Marina Residences located in Puteri Harbour, Nusajaya. The two condominium tower blocks comprise 456 units, offering 1+1, 2+1, 3+1 and penthouse units with built-up areas ranging from 769 sq ft to 3,317 sq ft. Selling prices start from RM 880 per sq ft
OUTLOOK
Knight Frank said that without any exciting news in the 2016 budget, cooling measures and tighter lending conditions are expected to continue to cool the property market, especially for the high-rise residential units.
The general focus of interest in Iskandar Malaysia will be the progress of the High Speed Rail (HSR) and the Rail Transit System (RTS) as these infrastructure projects are expected to enhance the property marketx around designated stations.
Currently developers are cautious about property launches, especially for the high-rise residential units in view of the slow absorption rates. The region will take time to digest the existing and incoming high-rise residential supply.
For 2016, the general outlook for the property market in Iskandar Malaysia remains lukewarm especially the high-rise residential sector. Landed properties are still favoured by the locals although it is expected that in the coming years it will be challenging as more developers are turning into landed developments with new and exciting concepts.