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Inside Iskandar Development Region
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Quarterly Property Digest for Iskandar Malaysia Inside Iskandar
Inside Iskandar Issue: 1
4Q 2011
Years On Fuelling Property Growth in Iskandar Malaysia
Quarterly Property Digest for Iskandar Malaysia
Quarterly Property Digest for Iskandar Malaysia Inside Iskandar
Quarterly Property Digest for Iskandar Malaysia Inside Iskandar
nside Iskandar is envisaged to provide a
high value perspective of Iskandar
Malaysia for investors and stakeholders
to further encourage to further encourage the flow of domestic
and foreign investments into Iskandar
Malaysia. This publication outlined the
current and future property market trend;
highlighting potential property investment
sectors.
This inaugural issue of the quarterly
publications focuses on the theme 5 Years
On, highlighting the progress of property
developments within Iskandar Malaysia since
its inception. This publication also signifies
the beginning of the second phase of
development in Iskandar Malaysia driven by
the completion of several catalytic projects in
Nusajaya, Senai and Johor Bahru City Centre.
To remain competitive in the global arena, a
brief review on other regional investment
destinations forms part of this publication.
Meanwhile, the market watch focuses on the
assessment of property sector performances
including transaction values, capital
appreciation, rental rates and yields. A close
track of new infrastructure and projects
within Iskandar Malaysia provides pertinent
yardstick in identifying potential investments
and growth areas.
This publication is a joint effort between
Iskandar Regional Development Authority
(IRDA) and Rahim & Co. Information
highlighted in this publication are based on
sampling of selected projects to represent
general property market condition within
Iskandar Malaysia
I Foreword 1
Feature Article 2 5 Years On
Market Watch
Landed Residential 9
Condominium 11
Purpose Built Office 13
Shop Office 15
Industrial 17
Editorial
1
Quarterly Property Digest for Iskandar Malaysia Inside Iskandar
Iskandar Malaysia celebrated its fifth anniversary in December 2011 on the back of a string of
achievements, and started Year 2012 from a position of strength. The Comprehensive
Development Plan 2006-2025 laid the foundation for holistic growth in the economic region,
and the results over the last five-year period have been a testimony to the commitment and
diligence of all parties involved in building Iskandar Malaysia.
Physical and economic development activities are complemented by initiatives to uplift the
quality of life of warga Iskandar Malaysia, especially in terms of skills upgrading, facilitation to
participate in the new economic opportunities being created, as well as in sharing the gains
from the prosperity. This social inclusiveness approach contributes towards the establishment
of an environment in the region that is conducive to Work, Invest, Live and Play, and further
enhances the value of Iskandar Malaysia as a destination of choice.
As at December 2011, Iskandar Malaysia had attracted over RM84 billion of cumulative
committed investments, of which 45 per cent have already been realised. A significant number
of key developments, in sectors such as education, tourism, healthcare, creative industries,
logistics and manufacturing will be completed and operational within the next three years. The
trend of incoming investments is continuing, and it is pertinent that all stakeholders, including
the business community and the public, are continuously updated on the progress of and
opportunities offered by Iskandar Malaysia.
Therefore, the publication of “Inside Iskandar : Quarterly Property Digest for Iskandar Malaysia”
is timely and strategic. It will serve as a reference point on the latest property market in
Iskandar Malaysia, which in turn, will reflect the level of dynamism and vibrancy of the region.
Congratulations to Iskandar Regional Development Authority (IRDA) and Rahim & Co. for this
initiative.
Foreword
1
Committed to Iskandar Malaysia YAB Dato’ Haji Abdul Ghani Othman Menteri Besar of Johor
"For development to be
meaningful, its objective must include
prosperity for all, and the benefit of progress
must cascade down to all levels of society such that no one will be
excluded or displaced" YAB DATO’ HAJI ABDUL GHANI OTHMAN MENTERI BESAR OF JOHOR
New Straits Times, 25 May 2011
Iskandar Malaysia is on the Right Track YAB Dato’ Seri Mohd Najib Tun Razak Prime Minister of Malaysia
Since its inception in 2006, Iskandar Malaysia is well on track in realizing the establishment
of a dynamic and modern metropolis of international standing by 2025. The development
in Iskandar Malaysia is geared towards being inclusive and sustainable, for the rakyat to
enjoy an enhanced standard of living, with good access to quality education, high-value
employment and business opportunities, and an enriched quality of life. It is in line with
the vision of the Malaysian Government to provide equitable and fair wealth distribution
across all segments of society.
Today, Iskandar Malaysia is experiencing rapid urbanization growth with several catalytic
projects actively taking place. Steady investments from both local and international
property players reflect the market’s confidence in Iskandar Malaysia. I believe, with the
continuous effort by the Johor State Government backed by full support from the Federal
Government, more investment will flow into Iskandar Malaysia thus, elevating the image
of Southern Johor to greater heights.
“Inside Iskandar : Quarterly Property Digest for Iskandar Malaysia” will play a crucial role in
providing information pertaining to property market trends in Iskandar Malaysia. This
inaugural issue entitled “5 Years On: Fuelling Property Growth In Iskandar Malaysia” is a
great effort to recapitulate the property growth in Iskandar Malaysia and will serve as a
basis for future growth.
On this note, I would like to congratulate Iskandar Regional Development Authority (IRDA)
for their effort in promoting Iskandar Malaysia. I also would like to express my
appreciation to Rahim & Co, one of the leading real estate consultancy firms in the country
for the successful publication of “Inside Iskandar : Quarterly Property Digest for Iskandar
Malaysia”. The government of Malaysia is committed to ensure continued progress and
success of Iskandar Malaysia.
"After all I believe the
only sustainable development path is
one that is inclusive and allows everyone to
be part of the value creation process" YAB DATO’ SERI MOHD NAJIB TUN RAZAK PRIME MINISTER OF MALAYSIA
New Straits Times, 12 December 2011
2
Quarterly Property Digest for Iskandar Malaysia Inside Iskandar
ISKANDAR MALAYSIA
Remembering the Past,
Embracing the Future.
Throughout history of the Malay Peninsula, Johor has been a gateway to international trade and cultural exchange. Whether it was
known as Palandas, Gangga Ayu, Lo-Yue, Galuh or Jauhar, the state has been at the forefront of the Peninsula’s social, political and
economic development. It is this unique perspective that continues to enrich Johor’s strong traditions of openness and
understanding. At the same time, Johor enjoys a liberal and cosmopolitan reputation unrivalled either in the peninsula’s long
history or in the glittering landscape of modern Malaysia.
It was a Johorean, Dato’ Onn Ja’afar, who founded the United
Malays National Organisation (UMNO), and he was also the first
who demanded that the party opens its doors to all Malayans
regardless of creed or colour. It was another Johorean, Tun Dr
Ismail Abdul Rahman, who moved in favour of citizenship for all
residents in Malaya - to make them loyal citizens of the new
independent nation. In this context, Iskandar Malaysia is the
extension of the innovation and imagination that moved celebrated
sons of Johor in the likes of Temenggong Ibrahim, Sultan Abu Bakar,
Dato’ Abdul Rahman Yassin, Dato’ Onn and Tun Dr Ismail to
undertake great and ambitious tasks for the public good with practicality, wisdom and principle. It is the enterprise of Wong Ah
Fook and the Kuoks, the hard work and the commitment of the Alsagoffs and other Hadhrami families, and it is the courage and
conviction of the Puthuchearys.
Regardless of their accomplishments, these individuals are but threads in the great tapestry that is the social and cultural milieu of
Johor. The state has produced generations of Malayan and Malaysian leaders in politics, government, commerce, society, sports,
academia and the arts, and they have been able to do so because of a breadth of vision formed over centuries of embracing
differences for the common good.
The centre of economic gravity is shifting inexorably to the East, along with the formation of a ‘New Silk Road’ stretching from the
Philippines to Africa. The New Silk Road is based on maritime rather than the overland routes of old. Johor (through Iskandar
Malaysia) with its maritime trading history, has the potential to be a significant part of this new route. Regionally, Iskandar Malaysia
is at the centre of Southeast Asia, located in between South China Sea and Malacca Straits, with links to the Indian Ocean.
With all available key advantages, Iskandar Malaysia has the opportunity to re-establish Johor’s economic and historical leadership
within the region, by keeping to the traditions of openness and pragmatism and leveraging on existing strengths as well as develop
complementary advantages with the rest of the region
Sultan Abu Bakar was also
unofficially known as "The Father
of Modern Johor", as many
historians accredited Johor's
development in infrastructure,
administrative system, military and
civil service to him in the 19th
century. He became the first Malay
ruler to travel to England in 1866.
“It is often said in Peninsular Malaysia that the people of Johor are “a little different”: highly refined, educated and
fiercely independent. Johor is, after all, the birthplace of the post-war Malay nationalism that led quickly to the
independence of Malaya, and even today it is regarded as the last and greatest bastion of that political tradition”
Introduction
3
Quarterly Property Digest for Iskandar Malaysia Inside Iskandar
ISKANDAR MALAYSIA
5 Years On
ESTABLISHING ISKANDAR MALAYSIA
The idea of developing a new economic corridor was
first mooted in the Ninth Malaysia Plan. The Federal
Government under the leadership of Tun Abdullah
Ahmad Badawi, the Prime Minister then, conducted
feasibility study to design a vibrant economic region to
propel growth in southern Malaysia in collaboration
with Khazanah Nasional Berhad. A Special Projects
Team (SPT) was formed in Khazanah to undertake the
task of preparing a Comprehensive Development Plan
(CDP) for the Southern Johor Economic Region (SJER).
On 4th
November 2006, Iskandar Development Region
(IDR) was officially launched by His Royal Highness the
Sultan of Johor, and witnessed by YAB Prime Minister
and YAB Chief Minister of Johor. This marks the
beginning of an exciting and dynamic phase of South
Johor’s economic development as outlined in the form
of the CDP. SJER later came to be known as the Iskandar
Development Region and subsequently Iskandar
Malaysia. Iskandar Malaysia covers an area of 2,217
square kilometres, estimated to be three times the size
of Singapore, offering ample supply of land but
competitively priced. The region already has an
excellent supply of infrastructure and utilities such as
electricity, transportation networks and services
including broadband telecommunications. The
development of Iskandar Malaysia is modelled after the
Pearl Delta Economic Zone, envisaged to capitalise on
its current synergies with Singapore aiming to
complement each other as an economic hub.
After 5 years, the contribution of Iskandar Malaysia
towards Johor’s economic growth is significant. To date,
Iskandar Malaysia accounts approximately 70% of the
total GDP of Johor.
Flagship B: Nusajaya is seen as the anchor of Iskandar
Malaysia with various high-impact and key catalytic
projects. EduCity, Legoland, Medini, Pinewood Iskandar
Malaysia Studios, Puteri Harbour and Afiat Healthpark
are among these projects.
Meanwhile, as Johor Premium Outlet in Kulai opened
last November, Flagship E: Senai-Skudai is poised to
grow to greater heights. This is further amplified by a
RM70 million investment to develop Senai Airport City
and completion of Senai Hi-Tech Park and MSC
Cyberport by 2013 and 2014.
Another highly anticipated project is the revitalization
of Johor Bahru City Centre under Flagship A. The
upgrading of Central Business District and waterfront
city will re-position Johor Bahru as a vibrant, modern
and liveable city centre.
The Eastern and Western Gates will continue to play a
vital role in Johor’s industrial sector and provide major
infrastructure facilities to Iskandar Malaysia. The
multiple projects introduced in both Flagship Zones will
significantly elevate the image of these localities
economically and socially hence enhancing shipping,
logistics and trade in Port of Tanjung Pelepas and
Tanjung Langsat Port.
“I have no doubt that Iskandar
Malaysia will be a vanguard for Malaysia and the region in the
years ahead” YAB DATO’ SERI MOHD NAJIB TUN RAZAK PRIME MINISTER OF MALAYSIA
The Star, 12 December 2011
3
‘ISKANDAR MALAYSIA’ is set to become
Southern Peninsular Malaysia's most developed
region, where living, entertainment,
environment and business seamlessly converge
within a bustling and vibrant metropolis.’
Pearl River Delta Economic Zone (2008-2020 Plan) by
China's National Development & Reform Commission,
is the most economically dynamic region of Mainland
China aims to boost the pan-Pearl River Delta as a
center of advanced manufacturing & modern service
industries catering for international shipping, logistics,
trade, conferences, exhibitions & tourism. It covers
Guangzhou, Shenzhen, Dongguan, Foshan, Zhongshan,
Zhuhai, Jiangmen, Huizhou & Zhaoqing.
4
Quarterly Property Digest for Iskandar Malaysia Inside Iskandar
Feature Article
WHERE WE ARE
Prior to the presence of Iskandar Malaysia, the property
scene in Johor Bahru had been to some extent quiet.
Market catchments are predominantly locals with
sporadic Singaporean investment. Development
activities took place in scattered locations carried out
by private developers. Projects undertaken are non-
correlated to each other due to the absence of proper
monitoring authority. As a result, without strong
catalytic projects, the scale of impact created from
these projects is rather low thus, incapable of elevating
the image of Johor Bahru to its true potential.
In early 2000, projects undertaken in Johor Bahru are
predominantly residential and shop offices. Transaction
market then was rather slow whereby between 2005 to
2008, values of several properties in Johor Bahru
depreciated. For instance, prices of single storey terrace
houses in some parts of the city area dropped between
2%-13% while prices in suburban areas declined
between 10%-18%.
The same goes to the prices of 2-storey terrace houses
whereby selling prices for selected properties
depreciated by 6% and 19% in the city centre and
suburban area respectively. However, selling prices of
established townships in the likes of Taman Bukit Indah
and Taman Austin Heights amongst others remained
stable due to its unique offerings and comprehensive
facilities.
The introduction of Iskandar masterplan had activated
Southern Johor property scene. Public awareness related
to investment opportunities in Iskandar Malaysia grew.
This is evident by the surge in the selling prices for
residential, commercial and industrial properties within
all growth areas in Iskandar Malaysia. Capital values
appreciated between 45%-160%, depending on the type
of property and location, compared with the prices
registered five years ago.
A 2-storey terrace house in Horizon Hills, Nusajaya
managed to record 50% capital appreciation from its
launching price of RM300,000 (2008) to the current price
of RM450,000. In East Ledang, 2-storey semi detached
units launched in 2008 at RM750,000, are now tagged at
RM1.2 million, suggesting growth of 60%.
The positive sentiment on Iskandar Malaysia properties
was also seen in the commercial sector. Shop offices
managed to record even higher appreciation rate. Selling
price of 3-storey shop offices in Sutera Utama, Nusajaya is
currently priced at RM1.8 million, commanding 130%
growth from its launching price in 2006 at RM780,000.
Rental rates of office building stabilized and several office
buildings are charging at higher rental rates. As of 2010,
Menara MSC Cyberport and City Square are rented at
RM2.60psfpm compared to RM1.50psfpm and
RM2.00psfpm respectively in 2005.
Industrial lands at Southern Industrial and Logistics
Cluster (SiLC) were originally sold at RM21psf in 2006. The
current asking price stands at RM45psf, marking value
appreciation of approximately 115%.
As foreign investments continue flowing into Iskandar,
demand for quality housing and commercial properties is
expected to increase. Iskandar Malaysia is witnessing
more high-end projects especially along the Johor Straits.
These properties have set a new benchmark in property
pricing, development concept and product offerings and
had created a new market segment in Iskandar Malaysia.
Aeon Bukit Indah catalysed the commercial growth in Taman
Bukit Indah, Nusajaya
Meanwhile, rental rates of existing office buildings in
Johor Bahru City Centre came under pressure between
2000 to 2006. Due to lack of strong demand driver in
Johor Bahru City Centre and the need to maintain and
attract new tenant, landlords are forced to lower down
the rental rates. On average, rental rates in 2000 stood
at RM1.98psfpm while in 2006, rental rates dropped by
about 11% to 12%; averaging at RM1.74psfpm.
“I am confident that Iskandar Malaysia is moving on the right track” MASAHIKO HORIE
JAPANESE AMBASSADOR TO MALAYSIA
The Star, 15 October 2009
5
Quarterly Property Digest for Iskandar Malaysia Inside Iskandar
THE COMPETITIVE EDGE
Albeit strong government support, constant promotion
and steady inflow of foreign direct investment (FDI),
Iskandar Malaysia is still exposed to global economic
uncertainties. Apart from the Asean five lead
economies namely, Indonesia, Thailand, Singapore and
Philippines (including Malaysia) touted as attractive
investment destinations, Australia, China, Hong Kong
and India are several regional key competitors to
Iskandar Malaysia.
Nevertheless, political stability, availability of relatively
cheaper labour, transparent legal systems and low
levels of land price and rent are the key advantages
enjoyed in Iskandar Malaysia.
DELHI, INDIA � Population: 11 million (2011)
� World largest urban agglomeration by area
� Average current rental yield: 3.1%
� Growth areas (National Capital Region – NCR):
- New Okhla Industrial Development Authority
(NOIDA)
- Uttar Pradesh
- Haryana
� FDI: USD2.76 billion (April to September 2010)
� Potential investment sector: Telecommunication,
metallurgical industries, power, computer
hardware & software and construction.
JAKARTA, INDONESIA � Population: 9.58 million (2010)
� To become the 10th largest economy in the world
by 2025 with a total GDP of RM13.7 trillion & per
capita income of RM47,000.
� Average current rental yield: 10.2%
� Growth areas (6 development corridors)
- Java’s Northern Coast Corridor
- East Trans-Sumatra
- South Trans-Kalimantan
- Trans-Sulawesi
- Bali-Nusa Tenggara Track
- Papua-Maluku
� FDI: USD5.27 billion (3Q11)
� Potential investment sector: Timber, shipping,
automotive, food and agriculture (total 22
economic areas)
SHANGHAI, CHINA � Population: 23 million (2010)
� To become an international city with a well-
balanced urban and rural development system and
to lead the upgrading restructure of the Yangtze
River Delta
� Average current rental yield: 2.6%
� Growth areas (satellite cities)
- Putuo District
- Pudong New Area
- Qingpu New City
- Jinshan New City
� Target commencement: 2012
� Potential investment sector: Advanced
manufacturing, emerging industries, modern
MELBOURNE, AUSTRALIA � The most liveable city in the Economist Intelligence
Unit's latest survey
� Average current rental yield: 4.1%
� Growth areas
- Southbank
- Port Melbourne
- Melbourne Dockland
- South Wharf
� Potential investment sector: Serviced Apartment,
condominium, commercial
These competitive edges have proved successful in
attracting investments as Malaysia was listed as the
world's 10th most attractive FDI destination by global
management consultant A.T. Kearney in its recent FDI
Confidence Index study.
Country 2010 2011 Change
China 1 1 0
India 3 2 1
Brazil 4 3 1
United States 2 4 -2
Germany 5 5 0
Australia 7 6 1
Singapore 24 7 17
United Kingdom 10 8 2
Indonesia 20 9 11
Malaysia 21 10 11
The 10 Most Attractive FDI Destinations
Source: AT Kearney
Regional Investment Destination
Source: Rahim & Co Research
Khazanah and Temasek, the state-owned investment companies of
Malaysia and Singapore, will jointly develop integrated projects in
southern Malaysia and Singapore. The development land parcels are in
Marina South and Ophir-Rochor in Singapore. Meanwhile, the estimated
RM3 billion ($952 million) of projects in Medini and Pulau Indah, Iskandar
Malaysia will consist of residential, retail and “wellness-related offerings".
5
6
Quarterly Property Digest for Iskandar Malaysia Inside Iskandar
Projects Completion Location
FLAGSHIP A
KPJ International University College 2013 Johor Bahru
Sg. Segget Rehabilitation 2013 Johor Bahru
FLAGSHIP B
Stadium Sports Complex Q2 2012 EduCity
Multi-Varsity Complex Q3 2012 EduCity
Legoland Q3 2012 Medini North
Marlborough College Q3 2012 EduCity
Lifestyle Retail Mall Q3 2012 Medini North
International Student Village Q4 2012 EduCity
Traders Hotel 2H12 Puteri Harbour
Indoor Theme Park 2H12 Puteri Harbour
1Medini 2013 Medini North
Medini Square 2013 Medini North
Pinewood Iskandar Malaysia Studios 2013 Medini Business
Legoland Water Theme Park 2013 Medini North
Raffles University Iskandar 2013 Educity
Management Development Institute of Singapore 2013 Educity
FLAGSHIP C
Petrochemical & Maritime Industrial Hub 2012 Tanjung Bin
FLAGSHIP D
Pasir Gudang Specialist Hospital 2012 Pasir Gudang
Universiti Teknologi Mara 2012 Bandar Seri Alam
Malaysia Art School 2012 Bandar Seri Alam
Excelsior International School 2013 Bandar Seri Alam
Help University College 2013 Bandar Seri Alam
FLAGSHIP E
Senai Hi Tech Park 2013 Senai
MSC Cyberport 2014 Senai
WAY FORWARD
To ensure further growth and progress, efforts must be
intensified in order for Iskandar Malaysia to become a
strong and sustainable conurbation of international
standing within the next 15 years, as envisioned by the
Comprehensive Development Plan. They are:
� Ensure the success of key projects
Projects such as Legoland Malaysia, Marlborough College
and EduCity are scheduled to fully come on stream in
2012. It is important to ensure the success of these
projects in order to build investor and public confidence
in Iskandar Malaysia, thereby attracting more
participation and investment into the region.
� Develop high-speed rail links
The development of a high-speed rail links with
connectivity to Iskandar Malaysia would stimulate
economic activity by drastically reducing travel time,
thereby encouraging the flow of talent and investment
into the region.
� Cluster new developments
This will create physical and geographical density that is
necessary for the efficient flow of ideas and innovation,
creation of liveable communities, as well as spur hubs of
economic activities.
� Intensify social development
Initiatives to enhance social development within Iskandar
Malaysia are top priority if there is to be fair and
equitable distribution of benefits across communities in
the region. Such efforts need to be intensified to also
ensure further buy-in from local residents, who should be
the main beneficiaries of developments.
� Iskandar Malaysia REIT
A “Social Real Estate Model” has been formulated under
IRDA’s Wealth Sharing programme which utilises
commercial and market-driven mechanisms to achieve
the objective of enabling all communities to fully benefit
from the wealth of Iskandar Malaysia but with priorities
to the lower income group.
� Implementation of Iskandar Blueprint
The Iskandar Blueprint is a pertinent tool in coordinating
all development plans to adhere to Iskandar Malaysia’s
standard and expectation. To date, 19 out of 20
blueprints have been approved with 13 in progress to be
implemented.
Feature Article
PROMISING OUTLOOK
As at 1H11, committed investment in Iskandar Malaysia
totalled at RM77.38 billion, of which 59% are from
foreign investment funds. The construction of major
infrastructure and catalyst projects are currently taking
place and will be completed as scheduled.
A sum of RM6.3 billion has been allocated in the Ninth
Malaysia Plan to improve transport connectivity within
Iskandar. Coastal Highways (which will cut travelling
time from Nusajaya to Johor Bahru from 40 minutes to
20 minutes) is well on track
0
10
20
30
40
50
60
70
80
2006 2007 2008 2009 2010 2011 (Mar)
RM
bil
lio
n
Committed Investment in Iskandar Malaysia
Government Properties Utilities, tourism & others Manufacturing
Key Projects to be Completed by 2012 / 2013
Source: IRDA
Source: IRDA & Various Developers Website
7
Quarterly Property Digest for Iskandar Malaysia Inside Iskandar
SENAI AIRPORT
� Total investment: RM70 million for Aero Mall
Project by Senai Airport Terminal Services Sdn Bhd
(SATS)
� Launched: 2008
� Completion: 2011
� To establish Senai Airport City comprises of:
- High Tech Park: 1,138 acres
- Cargo & Logistics Park: 928 acres
- Commercial & Residential Park: 652 acres
JOHOR PREMIUM OUTLETS
� Total investment: RM150 million via JV between
Genting Group & Simon Property Group
� Launched: 2009
� Completion: 2011
� The first Premium Outlet Center® in South East Asia
and the 70th outlet centre in the Premium Outlets
portfolio
AFIAT HEALTHPARK
� Developed by UEM Land Berhad
� Launched: 2008
� Completion: 2015
� Spans 67.2 acres and caters modern medicine,
traditional and complementary medicine (TCM) and
wellness.
� Columbia Asia Hospital worth RM70million opened
in 2010
IM PUBLIC HOUSING (PRISMA)
� Total investment to date: RM200million
� Launched: 2008
� Completion: 2011
� The objective is to build a better and improved
quality rental housing in Iskandar Malaysia with
improved public facilities in a conducive living
environment
SOUTHERN INDUSTRIAL & LOGISTICS CLUSTER (SiLC)
� Total investment to date: More than RM115 million
� Developed by UEM Land Berhad
� Launched: 2007
� Completion: On going
� Offers unique green industrial park concept
anchored by BioXcell
� More committed biotech companies from India,
France, South Korea & United States
LEGOLAND
� Total investment to date: RM720 million
� Launched: 2008
� Completion: 2012
� Developed by Iskandar Investment Berhad
� Legoland's first in Asia and only its sixth worldwide
PORT OF TANJUNG PELEPAS EXPANSION
� Total investment to date: RM6.4 billion
� Launched: 2000
� Completion: On-going
� Developed by MMC Corporation Berhad
� Port of Tanjung Pelepas set a world record in 1999,
as the fastest growing port handling 1 million TEUs
in the first 571 days of operations
MEDINI
� Total investment to date: RM4.1 billion
� Launched: 2008
� Completion: 15-20 years plan (expected 40%
completion by 2014)
� Developed by Iskandar Investment Berhad Berhad
� A facilitation fund of RM180.3 million from UKAS
for the construction of Coastal Highway (4.7km)
SENAI HI-TECH PARK
� Total investment to date: RM3 billion
� Developed by MMC Group of Companies
� Launched: 2009
� Completion: 2011
� Emphasis on green technology industries of the future and on the high-end semiconductor solar
advanced technology and materials
COASTAL HIGHWAY
� Total investment to date: RM945million
� Work commencement: 2008
� Completion: February 2012
� Constructed by: KS Tebrau Sdn Bhd
� Coastal Highway links Nusajaya from Danga Bay
� It is partially complete with the opening of the
Danga Bay Interchange
PINEWOOD ISKANDAR MALAYSIA STUDIOS
� Total investment to date: RM400 million via JV
between Khazanah Nasional & Pinewood Studios
Group
� Launched: 2009
� Completion: 2013
� Pinewood Studios has hosted movies such as James
Bond, Batman and Lara Croft, among others
EDUCITY
� Developed by Iskandar Investment Berhad Berhad
� Committed varsities include:
- Newcastle University Medical Malaysia
(NUMed) (completion: 2011)
- Marlborough College (completion: 2012)
- Netherlands Maritime Institute of Technology
(completion: 2014)
- Raffles University (completion: 2014)
7
FLAGSHIP E
FLAGSHIP B
FLAGSHIP C
8
Quarterly Property Digest for Iskandar Malaysia Inside Iskandar
Flagship Update
RESIDENTIAL
COMMERCIAL
INDUSTRIAL
CATALYTIC PROJECT
PUTERI HARBOUR
� Total investment to date: RM350 million
� Completion: 15 years plan (expected to be fully
completed in 2021)
� Developed by UEM Land Holdings Berhad (ULHB)
� Puteri Harbour is the southernmost marina and
waterfront development on mainland Asia
DANGA BAY
� Developed by Danga Bay Sdn Bhd
� Danga Bay covers 1,800 acres of land along Johor
Bahru’s Lido Beach
� Completed developments in Danga Bay include
Casa Almyra, Danga View Apartments, shop offices
at Danga Walk and a convention centre
LIDO BOULEVARD
� Total investment to date: RM2.7billion
� Work commencement: 2008
� Completion: 2016
� Developed by Central Malaysian Properties Sdn Bhd
(CMP)
� One of the biggest private finance initiatives along
the Lido waterfront after Danga Bay
KOMTAR REFURBISHMENT
� Allocation : RM5.5million
� Work commencement: 2007
� Completion: On-going
� Developed by Johor Corp (JCorp)
� KOMTAR is a 29-year old building well-known as a
shopping center in the 1980s and early 90s
KSL CITY
� Total investment to date: RM500million
� Launched: Retail component launched 2010
� Completion: On-going
� Developed by KSL Holdings Bhd
� KSL City Developments comprises a mall, hotel and
apartment
BANDAR SERI ALAM
� Developed by UM Land
� Bandar Seri Alam is also known as the ‘City of
Knowledge’ aiming to be the center of educational
excellence in the eastern part of Iskandar Malaysia
� Latest projects:
- Universiti Teknologi Mara (2013)
- Excelsior International School (2013)
- HELP University College ( 2013)
- Malaysia Art School (2012)
- Masterskill Univ. College of Health Sciences (2011)
TANJUNG LANGSAT PORT EXPANSION
� Total investment to date: RM10 billion
� Work commencement: 2009
� Completion: On-Going
� Developed by Johor Corp (JCorp)
� The port would have between 12-14 berths
according to the long term expansion plan. It
currently has 7 berths.
GALLERIA @ KOTARAYA
� Total investment to date: RM2.5million
� Work commencement: 2011
� Completion: 2012
� Developed by Damansara Asset Sdn Bhd, subsidiary
of Johor Corporation (JCorp)
� The renovated Kotaraya will incorporate 179 lots of
retail spaces
EASTERN DISPERSAL LINK (EDL)
� Total investment to date: RM977million
� Work commencement: 2007
� Completion: February 2012
� Constructed by: MRCB Lingkaran Selatan
� The EDL will connect the end of North-South
Expressway Southern Route at Pandan to the new
Sultan Iskandar Building CIQ Complex
SENAI DESARU HIGHWAY (SDE)
� Total investment to date: RM1.4billion
� Work commencement: 2005
� Completion: 2011
� Constructed by: Senai Desaru Expressway Berhad
� The SDE shortens travel time from Senai to Desaru
from 2 ½ hours to one hour.
SENIBONG COVE
� Gross Development Value: RM1.7 billion
� Launched: 2010
� Completion: 10 years plan (first phase completion
in 2012)
� Developed by Front Concept Sdn Bhd & Walker
Corp
� Senibong Cove is the first waterfront residential
project in Johor, modelled after Hope Island Resort
Gold Coast, Australia
KOTA ISKANDAR
� Total investment to date: RM1.5billion
� Launched: 2009
� Work commencement: 2004
� Developed by Cahaya Jauhar Sdn Bhd
� New state administrative center housing 76 state
and federal agencies
FLAGSHIP D FLAGSHIP A
9
Quarterly Property Digest for Iskandar Malaysia Inside Iskandar
LANDED RESIDENTIAL
Single storey and 2-3 storey terrace houses have the
largest supply in Johor Bahru with a total of 85,715 and
83,471 respectively in 2005. However the supply of 2-3
storey houses overtook single storey developments in
2006 which makes it the preferred type of housing as a
result of the introduction of newer housing schemes
with multiple storeys. In 2010, 2-3 storey terrace
houses formed the majority of stock with 95,691 units
followed by single storey houses amounting to 75,850
units. Records of supply of landed residential properties
in Johor Bahru recalibrated in 2008 due to
reclassification of supply stock by JPPH.
All single storey terrace, single storey semi-detached
and detached homes registered negative annual growth
from 2006 to 2010 indicating that buyers were no
longer satisfied with basic one-storey houses.
Prices for single storey homes have been stagnant with
minor increases throughout the years signalling a weak
demand. The highest growth in price was for 2-3 storey
semi-detached houses with a 29.7% increase since
2005. Single-storey semi-detached homes recorded a
negative annual growth with prices gradually decreasing
since 2005. Prices of detached houses peaked in 2008
with an average transaction price of RM428,488 but
declined the following year as buyers were beginning to
be more cautious following the financial crisis.
Prices for old single and double-storey homes in the
secondary market have not appreciated significantly
especially in areas outside the city centre. Prices for
these properties maintain to fetch low returns due to
the continuous offerings of new landed housing units in
the market which offers a more attractive product.
Demand for matured residential areas such as Kim Teng
Park, Serene Park and Taman Pelangi remain strong due
to its ideal location being close to the city centre and
essential amenities.
Modern housing units that feature the latest design
with gated and guarded facilities saw increase in price
of between 10%-30% such as those in Austin Heights,
Taman Sutera Utama, Adda Heights and Horizon Hills.
100,000
150,000
200,000
250,000
300,000
350,000
400,000
450,000
500,000
2005 2006 2007 2008 2009 2010
RM
Average Price per Transaction for Landed Residential
Properties in Johor Bahru
Single Storey 2-3 Storey Single Storey Semi-D
2-3 Storey Semi-D Detached
Source: JPPH, Rahim & Co Research
Source: JPPH
Source: JPPH
9
85,715 90,556
94,483
74,169 75,340 75,850 83,471
91,201 99,395
89,239 92,829 95,961
6,226 6,318 6,176 5,223 5,273 5,273 7,042 7,752 8,110 7,214 7,801 8,201
21,439 21,606 21,701 18,063 18,080 18,086
0
20,000
40,000
60,000
80,000
100,000
120,000
2005 2006 2007 2008 2009 2010
Un
its
Supply of Landed Residential in Johor Bahru
Single Storey 2-3 Storey
Single Storey Semi Detached 2-3 Storey Semi Detached
Detached
-30.0%
-20.0%
-10.0%
0.0%
10.0%
20.0%
2006 2007 2008 2009 2010%
Supply Growth of Landed Residential Properties in Johor Bahru
Single Storey Terrace Growth 2-3 Storey Terrace Growth
Single Storey Semi Detached Growth 2-3 Storey Semi Detached Growth
Detached Growth
Supply Growth of Landed Residential Properties in Johor Bahru
10
Quarterly Property Digest for Iskandar Malaysia Inside Iskandar
Property Market Tracking Market Watch
New stock of landed properties will continue to grow in Iskandar especially
along new transportation lines. Concentration of landed properties will be
towards Nusajaya area (Flagship B) dubbed as Nusajaya Residence developed
by UEM Land. Horizon Hills, East Ledang, Ledang Heights and Nusa Idaman
will be positioned as Iskandar Malaysia’s exclusive gated residential enclave.
Meanwhile, to the east of Johor Bahru City Centre, Bandar Seri Alam and
Senibong Cove will cater the landed residential demand in Flagship D. Bandar
Seri Alam by UM Land, touted as ‘City of Knowledge’, aims to be the center of
educational excellence in the eastern part of Iskandar Malaysia. To date,
several committed projects in Flagship D include Masterskill College,
University Technology Mara and Excelsior International School which will be
completed in 2013.
Senibong Cove is the first waterfront residential development in Johor,
modelled after Hope Island Resort in Gold Coast, Australia. The development
was the product of Australian property developer Walker Corporation Pty Ltd
UEM Land Holding Berhad (ULHB) is the
master developer of Nusajaya, the largest
integrated urban development in Southeast
Asia. Incorporated in August 2008, ULHB is
wholly-owned by Khazanah Nasional Berhad.
The prime objective is to turn Nusajaya into a
regional city with diverse catalyst
developments. Kota Iskandar, Puteri Harbour,
Southern Industrial and Logistics Cluster
(SiLC), Afiat Healthpark and Nusajaya
Residence are the signature projects of ULHB
in Nusajaya.
"When the entire
(Iskandar) project was first launched in 2006, the
locals had been sceptical, but have over the years
progressively turned more optimistic, especially after
witnessing the progress that Iskandar has made to date." DATUK WAN ABDULLAH WAN IBRAHIM
CEO, UEM LAND HOLDINGS BERHAD
Business Times, 10 June 2011
Distribution of Selected Existing and Upcoming Landed Residential
Location Property Type Launching Price
(year)
Current
Price
Appreciation
%
Sutera Utama 2.5-storey terrace RM420k (2008) RM700K +67%
Sutera Utama 2-storey semi-D RM750k (2008) RM1.1m +46%
Austin Heights 2-storey cluster RM236k (2004) RM400k +69%
Adda Heights 2-storey cluster RM336k (2007) RM500k +49%
Horizon Hills 2-storey terrace RM300k (2008) RM450k +50%
East Ledang 2-storey semi-D RM750k (2008) RM1.2m +60%
Capital Appreciation in Selected Residential Properties
Source: Rahim & Co Research
Adda Heights
Location: Tebrau
Launch Price: RM336,000 (2007)
Current Price: 500,000
East Ledang
Location: Nusajaya
Launch Price:RM750,000 (2008)
Current Price: RM1,200,000
Source: Rahim & Co Research
Leisure Farm
Location: Nusajaya
Launch Price: RM480,000 (2007)
Current Price: RM600,000
Horizon Hills
Location: Nusajaya
Launch Price: RM300,000 (2008)
Current Price: RM450,000
Taman Sutera Utama
Location: Skudai
Launch Price: RM420,000 (2008)
Current Price: RM700,000
Austin Heights
Location: Tebrau
Launch Price: RM236,000 (2004)
Current Price: RM400,000
Existing Landed Residential
Upcoming Landed Residential
Setia Eco Cascadia@Setia Indah
Built-up: 1760sqft-1920sqft
Dev. Price: From RM900,000
Launched: Dec 2011
Expected Completion: 2014
Bandar Seri Alam
Location: Masai
Launch Price: RM273,000 (2009)
Current Price: RM370,000
Senibong Cove
Built-up: From 3,400 sqft
Dev. Price: From 508,000
Launched: 2010
Expected Completion: 2012
Mont Calista @ Taman Pulai Bayu
Built-up: 3,050 sqft
Dev. Price: RM694,000-RM800,000
Launched: Dec 2011
Expected Completion: 2013
Nusa Sentral
Built-up: 2,100 sqft – 2,300 sqft
Dev. Price: From RM338,000
Launched: 2010
Expected Completion: 2012
11
Quarterly Property Digest for Iskandar Malaysia Inside Iskandar
0
50
100
150
200
250
300
350
400
0.00%
2.00%
4.00%
6.00%
8.00%
10.00%
12.00%
14.00%
16.00%
18.00%
20.00%
Adamai Wadihana
Condo
Lagenda
Tasek
Bistari
Impian
The
Habitat
Condo
Molek
Pine
Datin
Halimah
Condo
Stulang
View
Condo
RM
/psf
%
Launch Price, Current Asking Price and Gross Yield for
Selected Condominiums in Johor Bahru
Developer Price Current Asking Price (RMpsf) Gross Yield
CONDOMINIUM
18,161
19,603
21,372
20,823
22,757 23,297
7.9%
9.0%
-2.6%
9.3%
2.4%
-
5,000
10,000
15,000
20,000
25,000
-4.00%
-2.00%
0.00%
2.00%
4.00%
6.00%
8.00%
10.00%
2005 2006 2007 2008 2009 2010
No
of
Un
its
%
Supply vs Growth of Condominium/Apartment in Johor Bahru
Condominium Condominium Growth
292 254 268
365
585
447
102 91
174 195
272
370
63 38
73 57 72
145 122 106
171 171
279
332
6 7 24 11 56 45
4 - - - 9 6
-
100
200
300
400
500
600
700
2005 2006 2007 2008 2009 2010
Vo
lum
e
Volume of Transaction and Selling Price by Price Range of
Condominium/ Apartment in Johor Bahru
100,001-150000 150,001-200,000 200,001-250,000
250,001-500,000 500,001-1,000,000 1,000,000 & Above
The condominium market in Johor Bahru had shown
continuous growth since 2005, with the biggest supply
entering the market during the economic boom of 2006
and 2007. However, growth started declining during the
global financial crisis of 2008. In 2010, total supply of
existing condominiums increased by only 2% to 23,297
units, reflecting the cautious attitude of developers on
the impacts of the property market crisis.
Demand (measured by the volume of transactions) for
condominiums in 2005-2010, had grown significantly
from only 583 transactions recorded in 2006 to 1,345
transactions in 2010, reflecting the growing popularity
of high-rise living. Volume of transactions increased by
6% between 2009/10 and about 33% of the total
transactions recorded were for condominiums priced
between RM100,000 to RM150,000, followed by
properties priced between RM150,000 to RM200,000,
which made up about 28% of the total transactions.
Condominiums included in our study have shown
potential of giving yields between 6%-10%. Current
asking prices show that values for some older
condominiums have depreciated at a range of 15% to
20%. Of late, prices have improved with average price
range from RM150-RM400psf. Even though these
condominium buildings are old and less attractive in the
secondary market, demand for rent is quite high due to
their strategic location in the matured area of the city
centre, where there is a scarcity of vacant land to build
new condominiums. The highest rental rate noted is at
Molek Pine, ranging from RM2.50psfpm-RM3.00psfpm,
allowing potential yield of 8%-10% (based on current
asking prices that are between RM350psf-RM400psf).
Demand remains strong due to limited supply in Johor
Bahru. In spite of this, low and medium-priced
apartments in the RM150,000 price range have dipped
to be below RM100,000 in the secondary market in
most areas. The number of units up for sale by public
auction companies in areas such as Masai, Pasir Gudang
and Plentong remains high.
Source: JPPH
Source: JPPH
Source: Rahim & Co Research
11
12
Quarterly Property Digest for Iskandar Malaysia Inside Iskandar
Market Watch
Distribution of Selected Existing and Upcoming Condominium
In February 2011, Global Asia Investment (Macau) Ltd (GIAM)
acquired two blocks of Molek Pine Tower for RM200million. The
blocks will be used for its “Malaysia My Second Home” program
for its Japanese clients. The condominium blocks have been
designed to cater to the requirement of the Japanese
community, such as specific bathroom features like the Japanese
‘Ofuro’ as well as ‘Onsens’ (simulated natural hotspring pools).
Imperia Condominium Molek Pine Tower
The Seed
Built-up: 1,240sf – 2,390sf
Dev. Price: From RM320psf
Take-up: 70%
Launched: 2010
Expected Completion: 2012
Existing Condominium
Upcoming Condominium
On average, asking selling prices of existing
condominiums in Johor Bahru stood at RM276psf.
Prices for high-end condominiums such as Petrie
Condominium in Johor Bahru and The Straits View in
Bandar Baru Permas Jaya are on the rise. The Straits
View, previously transacted at RM250-RM300psf in
2008, is now being sold at around RM300-RM350psf.
Newly launched projects in the likes of Ujana in
Nusajaya and Molek Pine Tower are sold out while
Fairway Suites in Horizon Hills and The Seed in Taman
Sutera Utama have done well registering more than
70% sales performance. D’Esplanade Residence @KSL
City in Century Gardens is expected to do the same as it
nears completion date.
In November 2011, Imperia Condominium located near
the Puteri Harbour has set a new benchmark for
condominiums in Johor Bahru priced at RM600-
RM700psf. This sets a new tone and expectation in the
market for high-end condominium in Iskandar Malaysia
– potentially achieving prices comparable to high-end
condominiums in Klang Valley
Source: Rahim & Co Research
1Medini
Built-up: 720sf – 1,704sf
Dev. Price: From RM450psf
Launched: 2011
Expected Completion: 2013
Ujana
Built-up: 911sf – 2,480sf
Dev. Price: From RM360psf
Take-up: 100%
Launched: 2010
Expected Completion: 2012
Fairway Suites
Built-up: 837sf – 1,423sf
Dev. Price: From RM300psf
Take-up: 70%
Launched: 2010
Expected Completion: 2012
Imperia@Puteri Harbour
Built-up: 700sf-1,200sf
Dev. Price: From RM600psf
Launched: Nov 2011
The Habitat
Launch Date: 1993
Completed Date: 1999
Built-up: 1050sf-2380sf
Launch Price: RM270psf
Asking Price: RM460psf
Adamai
Launch Date: 2008
Completion Date: 2009
Total Units: 47
Launch Price: RM280psf
Asking Price: RM280psf
Bistari Impian
Total Units: 512
Launch Price: RM200psf
Asking Price: RM250psf
Molek Pine Tower
Built-up: 1,300sf – 2,300sf
Dev. Price: From RM385psf
Take-up: 100%
Launched: 2011
Expected Completion: 2014
Stulang View
Launch Date: 1990
Completion Date: 1993
Total Units: 176
Launch Price: RM310psf
Asking Price: RM250psf
Wadihana
Launch Date: 1994
Completion Date: 1996
Total Units: 170
Launch Price: RM270psf
Asking Price: RM250psf
Lagenda Tasik
Launch Date: 2006
Completion Date: 2009
Total Units: 286
Launch Price: RM300psf
Asking Price: RM320psf
Tropez@Tropicana Danga Bay
Built-up: 689sf – 1,668sf
Dev. Price: From RM580psf
Take-up: 60%
Launched: 2011
Expected Completion: 2013
13
Quarterly Property Digest for Iskandar Malaysia Inside Iskandar
SHOP OFFICE
3,658 4,289 4,478 4,627 4,799
3,613
17,037 17,573 18,108 18,666 19,010 19,345
4,767 5,108 5,189 5,473 5,643 5,880
1,825 1,831 1,919 1,921 1,982 1,982
-
5,000
10,000
15,000
20,000
25,000
2005 2006 2007 2008 2009 2010
No
of
Un
its
Supply of Shop Offices in Johor Bahru
1 - 1 ½Storey 2 - 2 ½ Storey 3 - 3 ½ Storey 4 - 4 ½ Storey
129
57 73 66 71
54
883
746
911
676
826
883
263 201
388
273 326
420
70 46 60 53 41
69
-
100
200
300
400
500
600
700
800
900
1,000
2005 2006 2007 2008 2009 2010
Volume of Transactions of Shop Offices in Johor Bahru
1 - 1 ½ Storey 2 - 2 ½ Storey
3 - 3 ½ Storey 4 - 4 ½ Storey
25 10 13 13
17 12
284
253
285
225
286
323
146
106
212
163
221
273
47 32
44 36 34 46
-
50
100
150
200
250
300
350
2005 2006 2007 2008 2009 2010
RM
/mil
lio
n
Total Value of Transaction of Shop Offices in Johor Bahru
1 - 1 ½ Storey 2 - 2 ½ Storey
3 - 3 ½ Storey 4 - 4 ½ Storey
The most popular type of shop office in Johor Bahru is
2-2½ storey, registering the highest number of supply at
19,345 units in 2010 which have been steadily
increasing since 2005. The 3-3½ storey shop collected
the highest annual growth rate at 3.6% whereas 1-1½
storey recorded the lowest annual growth rate at -0.2%
hinting at a supply typology shift. Total supply of shop
offices increased to 30,820 in 2010 from 27,287 in 2005.
The 2-2½ storey shops subsector has the highest
volume of transaction followed by 3-3½ storey shops.
The number of transactions for 2-2½ storey shops
recorded a 25% drop from 2007 to 2008 but is steadily
increasing as the economy recovers. The volume of
transaction for 3-3½ storey shops has also increased by
28% in 2009/10, signalling a stronger demand. The total
transaction of 1-1½ storey shop house has been
declining since 2005, suggesting a weak demand for
such properties.
Transaction of shop offices are mainly in the price range
of RM500,000 to RM1,000,000 for 3-4 storey shops.
Intermediate units of 3 storey shop offices launched at
RM800,000 in Taman Molek during mid 2000, are now
fetching prices of up to RM1.3million. The total
transaction value of a 3-3½ storey shop office recorded
the highest appreciation of 86% after 5 years. Units
facing the main roads and located in established
commercial areas are some of the factors affecting the
prices.
On the other hand, the price range for 2-2½ storey
shops are around RM250,000-RM500,000. In newer
housing estates such as Taman Nusa Bestari in Nusajaya
and Taman Sutera Utama and Taman Molek in Johor
Bahru, 2-3 storey shop offices have appreciated in price
over the last two years. Rentals for a 3-storey shop
office are in the region of RM5,000 and RM8,000 per
month for an intermediate unit and RM15,000 and
RM25,000 per month for a corner unit. Gross yields for
such properties are also lower, dropping from 6% to 7%
two years ago to 5% per annum for intermediate units
as rental growth were slower than growth of capital
values.
In 2010, shop offices in Taman Sutera Utama, Johor
Bahru were launched at RM2.08mil for an intermediate
unit and RM2.3mil to RM2.6mil for a corner unit. Given
the monthly rental of RM 7,500 for an intermediate unit
and RM13,000 for a corner unit, the yield for the shop
offices would be at a range of 4%-6%.
Source: JPPH
Source: JPPH
Source: JPPH
13
14
Quarterly Property Digest for Iskandar Malaysia Inside Iskandar
Market Watch
Distribution of Selected Existing and Upcoming Shop Offices
Location Property Type Launching Price
(year)
Current
Price
Appreciation
%
Monthly
Rental Return
Sutera Utama 3-storey shop RM780k (2006) RM1.8m +130% RM7,500 (5%)
Taman Molek 2-storey semi-D RM750k (2008) RM1.1m +46% RM7,000 (6%)
Austin Heights 2-storey cluster RM236k (2004) RM400k +69% RM6,500 (5%)
Nusa Bestari 2-storey cluster RM336k (2007) RM500k +49% RM6,500 (6%)
Capital Appreciation in Selected Shop Office Properties
Source: Rahim & Co Research
“Many buyers consider prices of shop houses in
Johor Bahru lower than those in Kuala
Lumpur. They would make good
investments in view of the developments
taking place within Iskandar Malaysia.” SIMON HENG
CHAIRMAN, REHDA JOHOR BRANCH
Star BizWeek, 6 August2011
In the coming years, shop office projects in Iskandar Malaysia will evolve due to rapid sweep
of urbanization that is currently taking place. Typical shop office design will soon be replaced
with a vibrant and innovative design concept emulating Klang Valley’s shop office
environment. New shop office concept that gains popularity in Klang Valley include Shop
Unit Mall Office (SUMO) and semi-detached offices. These concept emphasize on the
creation of central open area courtyard, a unique common area for street and cultural
activities that also offers alfresco style F&B
Sunrise Avenue in Setia Alam, Shah Alam offers
semi-detached shop offices featuring roof top
garden terrace as its unique selling features. This
new ‘work style’ concept will host multiple retail,
services and F&B outlets. Due to its unique offerings,
Sunrise Avenue command the highest selling price in
the vicinity.
Source: Rahim & Co Research
Taman Sutera Utama
Location: Skudai
Launch Price: RM780,000 (2006)
Current Price: RM1,800,000
Austin Heights
Location: Tebrau
Launch Price: RM236,000 (2004)
Current Price: RM400,000
Taman Molek
Location: Johor Bahru
Launch Price: RM750,000 (2008)
Current Price: RM1,100,000
Pasir Gudang Business Center
Location: Pasir Gudang
Launch Price: RM1,100,000 (2008)
Current Price: RM1,400,000
Existing Shop Office
Upcoming Shop Office
Southkey Lakefront Shop Offices
Built-up: 3,929 – 24,962 sqft
Dev. Price: RM1.1mil – 9mil
Launched: 2010
Expected Completion: 2014
Nusa Bestari
Location: Nusajaya
Launch Price: RM336,000 (2007)
Current Price: RM500,000
Indah Walk 3 @ Bukit Indah
Built-up: 947 – 4,499 sqft
Dev. Price: From RM191,000
Launched: 2011
Expected Completion: 2013
Oasis @ Tropicana Danga Cove
Built-up Area: 5,040sqft – 7,140sqft
Dev. Price: RM1mil to RM1.8mil
Launched: 2012
Expected Completion: 2015
15
Quarterly Property Digest for Iskandar Malaysia Inside Iskandar
PURPOSE BUILT OFFICES
7,079,262 7,083,352 7,083,352
7,486,655
8,047,551 8,152,908
0.06%
5.69%
7.49%
1.31%
6,400,000
6,600,000
6,800,000
7,000,000
7,200,000
7,400,000
7,600,000
7,800,000
8,000,000
8,200,000
8,400,000
0.00%
1.00%
2.00%
3.00%
4.00%
5.00%
6.00%
7.00%
8.00%
2005 2006 2007 2008 2009 2010
(Sq
ft)
Gro
wth
(%
)
Supply vs Growth for Purpose-Built Office in Johor Bahru
Purpose Built Office Purpose Built Office Growth
96%
86% 84%
96%94%
95%
80%80%
80% 80%80%
80%
90%
94% 95%
87%85%
70%
72%73%
61%
62%
73%
76%
50%
50% 48%50% 50%
50%
30%
40%
50%
60%
70%
80%
90%
100%
2005 2006 2007 2008 2009 2010
Occ
up
an
cy R
ate
(%
)
Occupancy Rate of Selected Office Buildings in Johor Bahru
Ansar Tower Landmark Tower City Square
KOMTAR Plaza Pan Global
1.00
1.50
2.00
2.50
3.00
2005 2006 2007 2008 2009 2010
RM
/psf
Rental Trend of Selected Office Buildings in Johor Bahru
Ansar Tower City Square
Johor Tower City PlazaEPF Building Landmark Tower
Plaza Pan Global Menara MSC Cyberport
Total supply of office space experienced significant
growth in 2008 climbing 5.69%, increasing total net
lettable area to about 7.49 million sf from 2005 to 2008.
Supply continued to rise to 7.49% in 2009, adding an
additional lettable area of 560,896 sf with the
completion of four new office buildings.
In 2010, the occupancy rate for purpose built office
buildings range from 50%-95%, with the highest
occupancy recorded at Ansar Tower. The strength of
the office tower to attract and maintain tenants could
be attributed to the integration of the retail mall
(Kotaraya) as part of the building. Kotaraya is currently
undergoing renovation and will be renamed to
Galleria@Kotaraya. Occupancy rate of Landmark Tower
has been stagnant for the past six years at 80%. The
lowest occupancy rate noted in Johor Bahru is about
48%-55% recorded by Plaza Pan Global followed by
KOMTAR with a slightly higher occupancy rate ranging
from 61%-76%. KOMTAR is undergoing refurbishment
works and is targeted to be completed by 2012. Upon
completion, KOMTAR will be positioned as modern
integrated commercial centre, which shall enhance its
occupancy and rental rates.
Generally, the office space market in Johor Bahru has
been soft since the Asian financial crisis in 1997 as
rentals within office towers in and around the city
centre hovers between RM1.50-RM2.50 psfpm inclusive
of service charges.
One of the most popular office locations in Johor Bahru
is City Square - mainly due to the presence of its retail
mall and its location along Jalan Wong Ah Fook, which is
arguably the busiest road in Johor Bahru. The rental
rate for City Square grew between 2005 and 2006 from
RM2.00psfpm-RM2.25psfpm and has been steadily
increasing throughout the years to around
RM2.60psfpm currently. Menara MSC Cyberport also
recorded a significant increase of rent from
RM1.50psfpm in 2006 to RM2.40psfpm in 2008.
Source: JPPH
Source: JPPH
Source: Rahim & Co Research
15
16
Quarterly Property Digest for Iskandar Malaysia Inside Iskandar
7.07%
5.86%
6.76%
4.58%
6.81%
2.45%
0
100
200
300
400
500
600
0.00%
1.00%
2.00%
3.00%
4.00%
5.00%
6.00%
7.00%
8.00%
Merlin Tower City Plaza Landmark
Tower
Menara MSC
Cyberport
Menara TJB Plaza Pan
Global
RM
/psf
%
Selling Price and Yield of PBOs in Johor Bahru
Market Watch
Menara MSC Cyberport, previously known as Menara
Sarawak, received its approval as the first MSC Malaysia
Cybercenter in 2006. Then in 2008, it received ISO
9001:2000 certification, making it an ISO certified MSC
Malaysia Cybercenter Management. The building’s MSC
status has become its key feature to attract tenants.
Iskandar Regional Development Authority (IRDA) was
the previous anchor tenant before IRDA moved to
Danga Bay. In 2011, the building holds Johor Bahru’s
highest rental rate for offices together with City Square
at RM2.60psf.
A notable event in 2008 was the opening of the new
Sultan Iskandar Customs, Immigration and Quarantine
Complex (CIQ) near the Johor Bahru Sentral, which
comprises of office blocks housing 15 government
agencies
Distribution of Selected Existing and Upcoming Purpose Built Office (Rental RMpsf Per Month)
Existing Purpose Built Office
Upcoming Purpose Built Office
Source: Rahim & Co Research
Medini Square
Johor Corp Tower
RM2.00psf
Landmark Tower
RM2.00psf
EPF Building
RM1.90psf
Menara Tabung Haji
RM2.00psf
City Plaza
RM1.60psf
Holiday Plaza
RM2.00psf
Wisma LKN
RM1.90psf
KOMTAR JB
RM2.50psf
Johor Tower
RM2.00psf
City Square
RM2.60psf
Menara MSC Cyberport
RM2.60psf
Ansar Tower
RM2.20psf
Plaza DNP
RM1.40psf
Metropolis Tower
RM2.00psf
Bank Negara
RM2.00psf
Plaza Pan Global
RM1.40psf
Waterfront Offices at Puteri Harbour
Source: Rahim & Co Research
“Like a giant Lego project, Malaysia is assembling the
pieces of an investment zone that is destined to become a metropolis about three times the
size of neighbouring Singapore.”
Reuters, 7 July 2011
Menara MSC Cyberport The new look of KOMTAR
17
Quarterly Property Digest for Iskandar Malaysia Inside Iskandar
INDUSTRIAL
6,008 6,008 6,008 6,008
5,164 5,164
2,213 2,233 2,232 2,244 2,177 2,177
1,444 1,471 1,510 1,538 1,267 1,276
-
1,000
2,000
3,000
4,000
5,000
6,000
7,000
2005 2006 2007 2008 2009 2010N
o. o
f U
nit
s
Supply of Industrial Properties in Johor Bahru
Terraced Semi-Detached Detached
278
226
248
228 239
333
138 132 128
107
126
163
122 128
75 58
46
76
-
50
100
150
200
250
300
350
2005 2006 2007 2008 2009 2010
Terraced Semi-Detached Detached
86.31 74.29 75.71 75.10 80.35
111.01
81.38 74.41 86.28 63.66
84.68 122.79
196.99
225.57
262.30 254.77
165.29
252.85
-
50.00
100.00
150.00
200.00
250.00
300.00
2005 2006 2007 2008 2009 2010
RM
/mil
lio
n
Terraced Semi-Detached Detached
Over the past 5 years, the supply of industrial
properties in Johor Bahru is mostly stagnant with minor
increments between 2007/08. The supply of terraced
industrial properties that make up 62% of the total
supply, decreased significantly by 14% from 6,008 units
in 2008 to 5,164 units in 2009. All industrial properties
across the board recorded a negative annual growth.
Terraced factories recorded the lowest annual growth
of -2.5%, followed by detached factories at -2.0%. In
total, the supply of all industrial properties decreased
from 9,665 units in 2005 to 8,617 in 2010.
In 2005, the total volume of transaction of industrial
properties stood at 540. After 5 years, there was a slight
increment of 5%, bringing the number of total
transactions up to 572 in 2010. The bulk of the
transactions were made up of terraced factories. Both
terraced and semi-detached factories recorded a
modest annual growth of 3.1% and 2.8% respectively.
As a result of the economic crisis in 2008, demand for
industrial properties decreased measured by the
volume of transactions. However, the market began to
turn in 2010, as total transactions increased by 28%
compared to the year before.
Semi-detached factories were noted to have the highest
growth in transaction value at a rate of 7.1%. Detached
properties are the most expensive; however, in 2009 it
suffered a 35% decline in transaction value. The
transaction values of terraced and detached industrial
properties were seen to be similar, recording an annual
growth rate of approximately 4.3% and 4.2%
respectively.
Meanwhile, prices of industrial land are seen to be
slowly increasing from 2005. Areas such as Tampoi,
Kempas, Seelong, Senai and Nusajaya had seen a
gradual increase in the values of industrial land. For
instance, prices in Nusa Cemerlang Industrial Park have
increased by 50% since 2008. Converted industrial lands
in Tampoi were sold between RM30 and RM40psf
compared with RM20 and RM25psf in the last two
years.
The total transaction value of all industrial properties
decreased in 2008 but picked up again in 2009 onwards.
Traditional industrial properties in typical industrial
parks have lost its lustre as the industrial sectors have
shifted to greener, cleaner and higher value added
manufacturing technologies. Future growth will be
consistent along these lines.
Source: JPPH
Source: JPPH
Source: JPPH
17
Volume of Transaction by Type of Industrial Properties in Johor Bahru
Value of Transaction by Type of Industrial Properties in Johor Bahru
18
Quarterly Property Digest for Iskandar Malaysia Inside Iskandar
Market Watch
The Senai Industrial Area is 800 acres in size and is
divided into 4 main parcels. It is in close vicinity to the
Senai International Airport, making in accessible by
major highways such as the North-South Highway and
the Second-Link Highway.
The Southern Logistics Industrial Cluster (SiLC) is the
newest industrial area launched promoting clean &
green industry. It was originally sold at RM21psf in 2006
and the present asking price is RM45psf that shows a
115% value appreciation. This could be due to its
unique green features, enhanced accessibility, its
managed industrial park concept, and its close
proximity to Tuas, an industrial zone in the western part
of Singapore. Gelang Patah Industrial Area is also
located in Nusajaya near to the Port of Tanjung Pelepas.
The Tebrau Industrial Area is surrounded by mature
residential developments that provide ample supply of
manpower and its location in between two major ports
in Johor, Port of Tajung Pelepas and Tanjung Langsat
Port.
Located in the Eastern Gate Flagship Zone is the Pasir
Gudang Industrial Area covering 3,764 acres of land. It
is near the Pasir Gudang Port and Tanjung Langsat Port
Distribution of Selected Existing Industrial
BioXCell, a biotech park on 32.37ha in SiLC Clusters (SiLC), is
developed by Malaysian BioXCell Sdn Bhd applying green
industrial technology in Nusajaya. Green Industry produces
environmental-friendly products and promotes recycling the
waste of work process and waste energy while reducing or even,
eliminating dependence on oil, green house emissions and toxins.
Senai Airport Freezone
Gelang Patah Industrial Park
Pelepas Free Zone
Source: Rahim & Co Research
Senai High Tech Park
Tebrau Industrial Area
Pasir Gudang Industrial Area
Southern Industrial Logistics
Cluster (SiLC)
Nusa Cemerlang Industrial Park
Senai Industrial Area
Location Property
Type
Asking Price
(2011)
Current
Price
%
SiLC Land RM35psf RM45psf +28%
Senai Industrial Park Terraced RM68psf RM76psf +12%
Nusa Cemerlang Industrial Park Semi-D RM145psf RM190psf +31%
Pasir Gudang Industrial Detached RM47psf RM52psf +10%
Capital Appreciation in Selected Industrial Properties
Source: Rahim & Co Research
Existing Industrial
Technology Park
19
Quarterly Property Digest for Iskandar Malaysia Inside Iskandar
Projects which are strategic and/or catalytic to the
development of Iskandar Malaysia that bring extensive
economic linkages can be considered for a customized
package of incentives based on the merits of each
project.
The ISP also caters for developers (companies that are
carrying out construction works) and development
managers undertaking physical development activities
in Medini. Approved developers will be entitled to:
� Exemption from income tax up to year of
assessment 2015 on statutory income from
the disposal of any right in or over land within
Medini;
� Exemption from income tax up to year of
assessment 2020 on statutory income from
the rental or sale of buildings within Medini;
and
� Exemption from compliance with withholding
tax provisions (up to 31 December 2015) on
payments made to non-residents for services,
interest and royalties.
In addition, approved development managers will be
entitled to exemption from payment of income tax on
statutory income from the provision of management,
supervisory or marketing services to an approved
developer until the year of assessment 2020.
While the incentives are directed toward attracting
investors to the region until 2015, efforts are done to
retain existing investors in Iskandar to maintain its
competitiveness in the region
Iskandar Malaysia - Incentives
VARIOUS INCENTIVES AND BUSINESS-FRIENDLY REGULATIONS PROVIDE
THE PROMISE OF EXCITING BUSINESS OPPORTUNITIES IN ISKANDAR MALAYSIA
19
In Iskandar Malaysia, the Incentive Support Package
(ISP) targets 6 sectors which are Education, Healthcare,
Creative, Logistics, Tourism and Financial Advisory &
Consultancy Services.
Fiscal incentives in the ISP for IDR Status Companies
(activities approved under Iskandar Development
Region) that commence their activities before
December 31, 2015 in Medini are as follows:
� Tax exemption on statutory income for a 10
year period, commencing from the date the
company commences operations in Medini;
� Exemption of withholding tax provisions on
payments for services and royalties to non-
residents for a period of 10 years, from the
date of commencement of operations in
Medini. Each foreign knowledge worker
employed by an approved ISP company is
eligible to apply for a duty free car for his or
her own personal use.
Non-Fiscal incentives include the exemption from
Economic Planning Unit (EPU) property acquisition
guidelines, flexibility under the exchange control
requirements administered by Bank Negara Malaysia
(Central Bank of Malaysia) and the flexibility to recruit
foreign expatriates based on IRDA expatriate post
guidelines. Companies undertaking promoted activities
or activities in promoted locations will continue to be
eligible for the nationwide incentives that exist in the
country such as that provided by the Malaysian
Investment Development Authority (MIDA) and other
sector promotion agencies.
20
Quarterly Property Digest for Iskandar Malaysia Inside Iskandar
Further clarification, assistance and information can be addressed to Head, Iskandar
Service Centre (ISC). ISC is a division within IRDA and is a single point-of-call for
investors in Iskandar Malaysia to obtain approvals for various aspects of development.
ISC acts as a principal coordinating and facilitation agent on behalf of relevant
Government agencies in relation to receiving, processing and expediting the requisite
approvals. ISC can be reached via telephone, fax, mail or e-mail at the following
address:
Head, Iskandar Service Centre (ISC)
Iskandar Regional Development Authority
#G-01, Block 8
Danga Bay, Jalan Skudai
80200 Johor Bahru
Malaysia
Toll free : 1 800 88 3010
Telephone : (607) 233 3000
Fax : (607) 233 3001
E-mail : [email protected]
Website : www.iskandarmalaysia.com.my
Any queries related to this publication, kindly email to [email protected]
Formed in 1976, Rahim & Co is one of Malaysia's largest real estate consultancy firms
with current staff strength of over 300 and 17 offices nationwide. Rahim & Co is an
International Associate of Savills plc, one of the world’s leading real estate
consultancy firms listed on the London Stock Exchange. Through the association,
SavillsRahim&Co has more than 200 affiliated offices worldwide providing a
comprehensive range of services encompassing all aspects of real estate:
� Property Valuation
� Research & Advisory
� Real Estate Agency & Brokerage
� Property & Facilities Management
� Project Management
� Investment Consultancy
Contact us to find out how we can service your property needs.
Rahim & Co Chartered Surveyors Sdn. Bhd.
Level 17, Menara Uni.Asia
1008, Jalan Sultan Ismail
50250 Kuala Lumpur
Malaysia
Telephone : (603) 2691 9922
Fax : (603) 2691 9992
Website : www.rahim-co.com
Contact Us
This publication is a joint-effort between Iskandar Regional Development Authority and Savills Rahim & Co.
c
Iskandar Regional Development Authority (IRDA) 2012
All rights reserved. No part of this document may be reproduced, stored in retrieval system, transmitted in any means (electronics, mechanical, photocopying, recording or
otherwise) without the permission of the copyright owner (IRDA). All information within this publication is correct at point of writing. This publication highlights only selected
projects to provide general property market condition in Iskandar Malaysia. Data included in all charts and tables are derived from Valuation and Property Service
Department, Ministry of Finance as well as from Rahim & Co’s database. Information in this publication is not to be taken as forming any part of the resulting contract, nor to
be relied upon as statement or representation of fact. Whilst every care is taken in the preparation, the Owner accept no liability as to their accuracy.
21
Quarterly Property Digest for Iskandar Malaysia Inside Iskandar
Rahim & Co Head Office – Kuala Lumpur
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