New development can spur Iskandar Malaysia’s property market

KUALA LUMPUR: The property market at Iskandar Malaysia could get a lift from ongoing initiatives as well as from a new development proposed at the Johor Bahru – Singapore Rapid Transit System (JB-SG RTS) link.

The project may well set a new pricing benchmark in the city centre given its location. According to RHB Research, this proposed development could potentially also lift prices for other developments in the vicinity.

“The special 15% income tax rate granted to eligible skilled workers is expected to attract a higher income population to stay in Iskandar Malaysia, which should create a favourable demand for housing moving forward,” it said.

Last Friday, MRT Corp and Hong Kong-based MTR Corp Ltd signed a memorandum of understanding for a mixed development next to the JB-SG RTS link.

The mixed property development will connect existing transport services in Johor Bahru including the KTM electric train service, city buses and the future bus rail transit.Profits generated from property development would be used to support the operations and long term maintenance of railways and to finance new railway projects.

“We think MTR Corp is a good partner considering the matured development of the MTR system in Hong Kong, as well as MTR Corp’s expertise in such an integrated development.

“The collaboration is another milestone achieved which should ensure that the RTS terminal and the related components are properly planned and designed,” RHB Research said.

The research house which has an “overweight” call on the sector, said it continues to like UEM Sunrise Berhad, as it could be a prime beneficiary. The research house said it also likes IOI Properties Group Berhad and Matrix Concepts Holdings Bhd.

It also thinks the Iskandar Malaysia property market will stage a recovery from now with the ongoing and upcoming infrastructure developments, special incentives from the government and favourable environment to investments.