Malaysia Property

[specuvestor]

I think roads and travelling is the blood vein of an economy, just as Singapore defined it in our debates of COE and ERP. Rome was supported by highways and US was linked by rails. India just ramping up their transport links after seeing how China does it.

So I think when it makes travelling easier and shorter it does increase the velocity of movements and resources including simple things like reducing paperwork within EU. I'm not sure if the immigration can be made seamless because cross borders involve security issues. That's why people like to work nearer or convenient (higher prices if near MRT stations) to workplace and why residential properties in cities tend to hold up even in countries with loads of land.

I certainly think the RTS will likely be a game changer for JB and Singapore. But the impact on properties might be more complex depending on the political, socio-economical demands and not just simple maths or demand/supply

PS I think sea travel is generally not preferred for short distance cause it's still port to port without last mile

[CY09]

Other than the queue at the immigration halls, the clearance of RTS will be seamless as both countries promised the use of automated gates. This means work permit holders, Singapore PRs, Singapore citizens will have seamless clearance.

Piricng wise, the bukit Chagar area did see some uptick in prices over the past 5 years, about 10% rise mainly due to the RTS. For the larger 4 bedroom (aka 5 room units), it is about 1.2mil-1.3 mil ringgit (900 psf). The 3 bedroom units go nicely at Ringgit 1 million probably to meet the malaysia foreigner investor home rules (min RM$1 million for foreigners to buy.) There are other units that are closer to the CIQ and RTS which goes for about RM$1,000 PSF

From an investment point of view for prices (ignoring renting/staying), given how easy it is to walk to RTS at Malaysia (sans being robbed halfway) and that the new RTS immigraion concept arrival/departure clearance done in 1 location (which is happening at Woodlands Train Checkpoint now) and frequency of 5 minutes train. I do feel prices in this area will likely creep upwards to match Singapore home prices. Amneities are there, with complexes like Princess Cove built as an integerated development

[Big Toe]

We'll see how it pans out. Nearly all of Johor's condo have prices dropping significantly since launch, except for the ones nearest the customs. Even those nearer customs have seen dramatic price drops and then stabalizing, not sure how much of it is related to the rocketing prices of SG property.

Since I dont regard any properties in malaysia investable persoanlly, I can only view it from a qualitative/leisure perspective. I do know that some of the luxury condos are used to house foreign workers working in Malaysia since rental is very affordable and there is abundant supply.

I dont know if a foreign worker working in Singapore can be housed in another country but what I do know is that worker dormitories are quite costly now(due rules on living condition/previous over crowding) such that many construction companies are housing some of their workers in the cheaper condos in SG. (HDB have restrictions on who can rent, private apartment/condos dont)

So housing foreign workers in JB might be a great alternative and there will be a mad rush for firms to house their workers there if it is allowed. (Or used as a student dorm.)

[specuvestor]

Yes Malaysians that I know always tell me there is no rental market in Malaysia, except maybe KL. Most of the properties decline in value after 5 years as their maintenance is horrendous, and developers' promises are often "bounced cheques". You can see the same for most of their malls. Some of the better malls and properties in JB are run by Singaporean entities and held up better

I think foreign workers, student dorms and even retirement village makes sense. I do not think JB price will match Singapore in our lifetime. It's like saying Shah Alam prices will match KL. There is always a premium for proximity and convenience. On the other hand as a contrary example it will be interesting to observe Shenzhen price moving closer to HK as I expect HK to degenerate into a 2nd tier city in next 25 years.

But the CURRENT gap between SG and JB is large enough that some singaporeans are actually staying there and commute over to SG, even their children have to wake up before 5am. It's their lifestyle choice but shows that it is enticing enough. With the RTS this gap will likely close and the different dynamics will work itself out, with likely segmentations.

[Sampling]

I always tell my Singaporean friends to use these rules if you want to buy residential properties in Msia.

1. If you're not a Malaysian and don't have a Malaysian Spouse, don't buy.
2. If you're not sure about the technicalities (eg. resident vs non-resident tax, SDs, state prop laws, etc ) of buying a residential properties in Msia, don't buy.
3. If you're buying for investment and not on-stay, don't buy.
4. If you see property developers or agents contacting you first instead of you contacting them, don't buy.