Bucking mainstream opinion, the Real Estate and Housing Developers Association (Rehda) has come out to say that there is no better time to buy in Johor than now.
Despite the ongoing economic uncertainties that have slowed the property market in the southern state, the association points out that many of the surplus completed units in and around Johor Bahru city take into account the old construction costs – predating the recent building material hikes – which means buyers benefit from pricing that is below the market value.
According to a Bernama report, Johor Rehda’s branch chairman Datuk Steve Chong Yoon On said this opportunity should not be wasted as the price of houses is expected to increase in the next one to two years, following rising construction costs that have to be borne by developers.
Chong said prices are expected to jump by between 5 per cent and 10 per cent in about a year, attributing the increase to the weakening ringgit against major currencies over the past two years as well as the hike in land, building materials and labour costs.
“These costs include professional fees and surveying fees in housing development,” he told reporters at the opening of the Malaysia Property Expo (Mapex) at the Johor International Convention Centre earlier this week.
He said there are currently more than 11,000 units of houses in Johor which have not yet been taken up. Many of these are attractively priced and located in areas with strong growth potential within Iskandar Malaysia.
In addition to this, residents within the state have also reported that a number of developers are now offering handsome rebate schemes and discounts in order to reinvigorate the buying public.
Chong admits that there has been a marked slowdown in property transactions in Johor this year, adding that the outlook for Iskandar Malaysia in 2017 is likely to be more challenging.
“Developers in Iskandar Malaysia like in other parts of the country are cautiously monitoring the situation and will go for smaller launches for the next one to two years,” said Chong.
He advised the 128 developers active in Johor Rehda to look at residential properties priced between RM300,000 and RM700,000 as demand for properties within the price range was still good, but properties priced RM800,000 and above will find it difficult to attract buyers.
In addition to the upcoming Mapex, Chong revealed that Johor Rehda plans to hold a property expo in China and India in March next year, with Guangdong as the first destination.
“The aim is to attract outside buyers. We will invite interested housing developers and select the suitable property to be promoted for sale. Besides that, we hope for government involvement to make it a success,” he added.