Massive property developments have been springing up all over Malaysia as part of the Iskandar Malaysia development plan over the past few years. But now, as the project is in full force, bumps are gradually showing up.
In Johor, one of the key economic drivers of Iskandar Malaysia, a major land reclamation project which is to yield thousands of luxury homes may now be in danger of being cancelled as it may threaten marine environment and the livelihoods of hundreds of fishermen.
Named Forest City, the project which will be built on the reclaimed land will feature four islands whose land area will total three times that of Sentosa, linked by roads and also to mainland Johor. It will house a massive number of luxury condominiums and landed homes. As a joint project by China’s Country Garden Holdings and a company with links to Johor’s Sultan Ibrahim Ismail, it seems they are counting on Chinese buyers from snapping up properties there, despite a looming supply glut.
Besides Country Garden Holdings, other Chinese developers such as R&F Properties are also reclaiming land on both sides of the causeway to build a mixed-used developments which including hospitality, commercial and residential properties. Greenland Group and their Tebrau Bay Waterfront City in eastern Johor Bahru is also adding to the pool of high-end luxury homes in Iskandar.
Malaysians and investors alike are now worried that the oversupply of luxury homes in Malaysia may take the turn for the worse should more such massive projects be allowed to carry on. With that many projects being developed at the same time, how could investors better prepare themselves for the future? And are all projects in equal danger? Or are there still projects which are worth investing in?