TheEdgeProperty.com reported that Landserve (Johor) Sdn Bhd Executive Director Wee Soon Chit said that property prices could decline up to 30% in Johor after his presentation at the 10th Malaysian Property Summit 2017 that landed residential property prices are on the downtrend.
“Landed property prices in new prime areas, such as Iskandar Puteri, have been declining in the past two years at an average pace of 15% to 20%. I don’t think the dust has settled yet but many things could happen. However, considering the downtrend, landed property prices in Johor may see a maximum 30% dip,” Wee said. He sees this as a ““market self-adjustment”.
“Properties there were so hot and selling at quite a high price so even if landed residential property prices drop another 20%, I think the market would still be healthy,” Wee noted.
“Although landed homes are still in demand, the absorption speed can’t beat the incoming supply.”
He said about 13,000 landed housing units are coming into the market in 2017/2018. Nonetheless, he remains optimistic about new projects with units priced around RM400,000 to RM600,000.
He added that the industrial property segment in Johor is also seeing poor occupancy. As at 3Q2016, there were some 11,578 existing stock in Johor Bahru and Kulaijaya.
“As you pass by the industrial areas in Johor, you will see many for sale or to let stickers on the properties, and I think we are going to see more because there will be more incoming supply,” he said.
However, there are some exceptional cases such as i-Park @ Senai Airport City by AME. “The key success factors are build-and-sell or build-and-lease-type properties. I think this is the way to go, at least for the next two years.”