Has Iskandar lost its appeal to Singaporeans?

Despite the weaker Malaysian ringgit and Singapores cooling housing market, Singaporeans are delaying their property purchase in Iskandar Malaysia due to uncertainties over government policies, media reports said.

According to PropertyGuru Malaysia Country Manager Dr Gerard Kho, Singaporeans are still buying units in the economic zone, but many are holding off their purchases due to this predicament.

We have brought more than 30 developers to Singapore, primarily from the Iskandar region. From mid-2013 to end-2013, we were averaging 2,500 to 3,500, almost 4,000 visitors coming to our shows. In 2014, the numbers started to dwindle despite us increasing budget that we spent, he said.

Kho noted that PropertyGurus roadshows for the year to June 2014 could generate about RM70 million to RM80 million in sales over a weekend. But now visitors are buying properties after the event rather than during the roadshows.

They want to buy but the challenge right now is what information do they have? What are the policies in place over the next year, two years or three years?

Notably, Singaporeans are waiting on the sidelines as they are unsure about Iskandars masterplan in light of various regulations like quotas for condos and landed houses, the RM1 million minimum price threshold for foreigners and the real property gains tax (RPGT), wherein Medini is exempted.

Thus, he is calling for more transparency over the governments policies for Iskandar, and these policies should be long-term so that Singaporeans can confidently buy properties there without any fear.

In agreement, Gabungan AQRS Bhds Jerry Lau said: They (Singaporean buyers) are looking for consistent policies. If we can make all these transparent and pass information back to Singapore side, they will be the first ones to buy because of the currency exchange, they can capitalise on that as well as the Singapore property market itself now is very slow, slower than Iskandar.

Responding, Iskandar Regional Development Authority (IRDA) Senior Vice President for economics and investment Cheah Ping Yean revealed the second version of Iskandars comprehensive development plan is expected to be published by end-March.

In that document, one of the key measures is to set up a central database ... we will make it as transparent, predictable and accessible as possible, he shared.

Romesh Navaratnarajah, Singapore Editor at PropertyGuru, edited this story. To contact him about this or other stories email romesh@propertyguru.com.sg

More from PropertyGuru:
Another crane topples, this time in Punggol
Singapore still world's most expensive city: survey
New housing estates to get better bus connectivity
Singapore top in Asia for overseas property investments