PETALING JAYA: Property developers with strategic land banks in Iskandar Puteri, Johor, have enjoyed brisk sales for their recent launches as connectivity improves.This trend is augmented by growing demand for industrial properties and land for data centre developments in the state, according to CIMB Securities Research.

Following its recent visit to two major developments in Iskandar Puteri – namely Sunway City Iskandar Puteri (SCIP) by Sunway Bhd and Puteri Harbour by UEM Sunrise Bhd – in conjunction with Invest Malaysia 2024, the brokerage said it came away feeling “more assured that the feel good factor generated from Johor’s transformative landscape would eventually trickle down to Iskandar Puteri, the heartbeat of the Iskandar Malaysia within the southern development corridor of Johor”.

“This, in turn, has helped prod a nascent revival in demand for properties in Iskandar Puteri and its surrounding areas,” CIMB Securities Research said.

The brokerage noted six compelling reasons that supported its view.

Moreover, these included strong take-up rates of new property projects, record selling prices of new developments, accelerating pace of placemaking activities, improved connectivity, industrial/data centre development and the ripple effect from the Johor-Singapore Special Economic Zone (SEZ).

“There was renewed interest for properties in Johor, which first centred on high-rise developments in Johor Baru city near the proposed Johor-Singapore Rapid Transit System Link (RTS Link), but has since spread towards other areas such as Iskandar Puteri,” it said.

“To be sure, we were pleased to learn that recent launches at Iskandar Puteri have been very well received,” it added.

For instance, the first 50 units released under Sunway Maple Residence@SCIP were snapped up within two hours of its launch last month, while three of UEM Sunrise’s latest projects in Iskandar Puteri were full-booked during their respective previews over the past few months, it pointed out.

CIMB Securities Research noted that landed units at Sunway Maple Residence (the first freehold project at SCIP) were sold at one of the highest price points in Johor, starting from RM1.2mil per unit, based on RM550 per sq ft.

“Significantly, this may indicate a broadening in demand for premium housing within Iskandar Puteri.

“This is especially among foreigners and locals working in Singapore,” the research house said.

Further, it noted that plans are in the pipeline to build a college and medical centre at SCIP that will make the green township even more liveable and vibrant, and there is a potential introduction of a new ferry service to and from Tuas in Singapore that would be a big boost to Iskandar Puteri.

“The Johor government is finalising a seamless local transportation network that will support the scheduled opening of the RTS Link in January 2027,” CIMB Securities Research further added.

“Aside from the expansion of two major highways – North South Expressway and Senai-Desaru Expressway – the completion of a new interchange at Gerbang Nusajaya would reduce the travel time to the Tuas Link to just 15 minutes from about 30 minutes currently.”

For the Iskandar Malaysia play, CIMB Securities Research said Sunway and UEM Sunrise, as two of the largest landowners in the development, would provide good leverage to the rising prospects, which should receive an added kick if the proposed SEZ materialises as planned.

Source: The Star, October 9, 2024