In the latest Q32019 Residential Overhang Status report released by the National Property Information Centre (NAPIC), Johor remained the highest with 5,470 units, or 17.6% of the national total, with Perak trailing not far behind at 5,126 units, and Selangor at 4,872 units.
This has led to some asking if it’s viable to take the plunge on a new house for sale in Johor Bahru. Let’s take a look at recent developments:-
Residential Houses Transactions in Johor are the second-highest in Malaysia
An overhang does not mean people have stopped buying properties. It just means people are more selective in their purchasing decisions.
In a separate Residential Transaction Data Q3 2019 NAPIC report, Johor recorded the second-highest volume of transactions at 21,591 units or about 14% of total units sold in the country. The type of housing commanding the majority of the demand comes from terraced (or linked) houses.
Image Source: NAPIC Residential Transaction Data Q3 2019
Budget 2020 has spawned some hope for increased property demand
In the most recent National Budget, the proposal of a lower threshold from RM1 million to RM600,000 for foreign buyers of high-rise residential properties will encourage more demand and alleviate the oversupply.
Budget 2020 also proposed to allocate some RM25 million to promote medical tourism. Some hospitals in Johor also allow Singaporeans to use their Central Provident Fund (CPF) for their medical expenses in the state.
This bodes well for Singaporeans intending to retire in Johor Bahru due to the lower cost of living. Buying a property in the state would seem like a sound investment for their golden years.
Johor Bahru is experiencing rapid infrastructural upgrades
Johor Bahru is set to see some major projects in terms of connectivity and transportation.
An article from Edgeprop.my reported the RM85 million budget allocation for the Causeway and Second Link would be a boon to Johor and Singapore considering the significant amount of daily traffic at the two checkpoints
The government had also announced its intention to proceed with the Rapid Transit System (RTS) between Johor Bahru and Singapore. An executive director for a prominent property consultancy noted, “It will be a long term plan to clear the traffic congestion as well as be a boost to the Johor Bahru property sector both in the city centre and its fringes. However, there is a need to ensure the last-mile connectivity is available and the fares reasonably priced.”
All in all, the housing development scene in Johor Bahru still has a lot going for it. What is important is in selecting the right kind of home to give purchasers peace of mind for the investment they make.
Photo by Alfred on Unsplash: https://unsplash.com/photos/ExbPrFVOMak
Related Article: Are Johor Houses Worth Investing In
Mah Sing’s commitment to building living spaces that serve the needs of the community is demonstrated in their very own Meridin East, a magnificent lake garden community of linked homes blessed with ample outdoor activity spaces in Pasir Gudang, Iskandar Malaysia.
Citations:
https://www.malaysiakini.com/news/500815
https://focusmalaysia.my/property/will-2020-be-a-recovery-year-for-the-property-sector/
