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ISKANDAR MALAYSIAProperty Market Overview
May 2015
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GEOGRAPHICAL COVERAGE OF IM
Source: IRDA
• inancial,
• Cultural & UrbanTourism (Sultan Ibrahim
Building)
•Danga Bay
•CIQ Complex, The
Causeway
•Leisure (KOMTAR
JBCC)
JB CITY CENTRE
•Logistics
•Manufacturing
(Aerospace Park, Senai
Intl Airport, Airport City,
Senai ree Zone)
•Tourism (JPO)
•MSC Cyberport Malaysia
SENAI-SKUDAI
• Education & HealthServices (Edu City & Afiat
Healthpark)
• Entertainment &Recreation (LEGOLAND,
Kota Iskandar, Puteri
Harbour)
• State Administration•
Business & inance
•SiLC and Medini
Iskandar
NUSAJAYA/MEDINI
•Logistics
• ree Zone Industrial Area
•Regional Distribution,
International Procurement
•Oil Storage Terminals
•Port of Tanjung Pelepas
TANJUNG PELEPAS
Region Area (km
2
) Population (million)
Iskandar Malaysia 2,217 1.88
Greater KL 2,790 7.0
Dubai 3,885 2.2Hong Kong 1,095 7.2
Singapore 690 5.5
•Manufacturing
(Electronics,
Petrochemicals,
Oleochemicals)
•Oil Storage Terminals
• Trade & Expo City(APTEC City)
• Johor and TanjungLangsat Port
PASIR GUDANG /
TANJUNG LANGSAT
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SELECTED PROJECTS IN IMFlagship A
Iskandar Waterfront
Development
: under
planning
Country Garden
Danga Bay
:
completion in 2018
Flagship B
Educity: completed in
2014
Legoland: completed
in 2013
Puteri Harbour: Phase
2 completed in 2013
(other phases under
construction/planning)
Pinewood Iskandar
Malaysia tudios
:
completed in 2013
Flagship C Flagship D Flagship E
Port of Tanjung Pelepas:
completed in 2012
Petrochemical & Maritime
Industrial Hub Tanjung Bin
:
completion in 2015 (phase 2)
Pasir Gudang pecialist
Hospital
: completed in
2012
Universiti Teknologi
MARA
: opened in 2013
Johor Premium Outlets:
completed in 2011
enai Hi-Tech Park
:
launched in 2011
Source: IRDA
Source: Savills Research
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PRESENCE OF CHINESE DEVELOPERS IN IM
Source: Savills Research
Developer:
Zhuoda
Group
Project:
Paradiso Nuova
(high-rise residential
development on 16
acres)
Developer:
Guangzhou
R&F PropertiesProject:
Princess
Cove (116-acre
development with
residences, retail units
and offices)
Developer:
Hao Yuan
Project: not announced
yet (purchased 37 acres
in Danga Bay)
1
Developer:
Greenland
Projects:
Jade Palace (retail and residential
units on 13.6 acres)Tebrau Bay Waterfront City
(128-acre mixed-use
development)
24
51
Developer:
Country Garden
Projects:
Country Garden Danga Bay
(residential and retail units on 57 acres)
Forest City
(integrated developmenton reclaimed land –
about 1,386 hectares)
2
3
3
4
5
6 6
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INVESTMENTS INTO IM IM continues to receive strong investment interest with 47% realised to date (RM78.53 billion out of RM166.11 billion).
During the first quarter of 2015, IM secured RM7.98 billion in new investments, recorded a total cumulative committed investments ofRM166.11 billion.
Manufacturing sector continues to be the top performer, contributing 31% (RM50.82 billion), followed by supporting sectors such asresidential & retail property sector at 41% (RM68.75 billion) and industrial properties, government, utilities, and emerging technologies at 6%, 5%,8%, and 1% respectively.
The other promoted sectors merely contributing 9% of the total investments into IM, such as logistics (3%), healthcare (2%), tourism (2%),education (1%), and creative & finance (1%).
Source: IRDA
5.50 11.90
21.70 23.65 26.92 31.22 33.90
46.82 50.09 50.825.05 9.11
14.4519.98
28.79
43.26
61.15 66.92
7.10
8.17
16.52
21.83
27.30
35.14
33.25
38.58
40.06
5.80
5.80
6.83
6.28
6.28
6.28
7.31
8.31
8.31
8.31
RM11.30
RM25.80
RM41.75
RM55.56
RM69.48
RM93.89
RM105.14
RM131.64
RM158.13
RM166.11
RM0
RM20
RM40
RM60
RM80
RM100
RM120
RM140
RM160
2006 2007 2008 2009 2010 2011 2012 2013 2014 Mar-15
Total Cumulative Investments into Iskandar Malaysia [2006 – Q1 2015]
Government
Properties
Utilities, Tourism & Others
Manufacturing
Total Committed Investment
Committed
RM87.58billion
(53%)
Realised
RM78.53billion
(47%)
Total Investments into Iskandar Malaysia
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FOREIGN INVESTMENTS INTO IM Investments from Singapore mainly consist of education,
healthcare, manufacturing and property development sectors.
Investments from China are mainly from the property
development sector.
Source: IRDA
Singapore
RM12.06 bil
USA
RM6.30 bil
SpainRM4.18 bil
JapanRM4.06 bil
ChinaRM3.74 bil
Top 5 Foreign Investors
Foreign investments stand at 38%
of the total committed
investment as of Q1 2015. Top 5 foreign investors are:
Singapore
USA
Spain
Japan
China
50.64 67.69 83.40
101.14 102.34
34.14
37.45
44.81
56.99 63.77
0
20
40
60
80
100
120
140
160
180
2011 2012 2013 2014 Q1 2015
T o t a l I n v e s t m e n t s ( R M B
i l l i o n s )
Domestic vs Foreign Investments
ForeignInvestments
DomesticInvestments
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APPROVED DEVELOPER
Income tax exemption
on income derived from disposal of land in the approved nodes (up to 2025); and
Income tax exemption on income derived from sale or rental of a building in the approved nodes (up to 2030)
IM INCENTIVES SUPPORT PACKAGE (ISP)
Note:
1) The ISP to be extended for another 10 years after the initial expiration on 31 Dec 2015.
2) The approved nodes are Medini, Vantage Bay, Danga Bay and Pinewood Iskandar Malaysia Studio.Source: IRDA
APPROVED DEVELOPMENT MANAGER
Income tax exemption
on income derived from the provision of management, supervisory & marketing services to an
Approved Developer company, specific to an approved project in the approved nodes (up to 2030)
IDR TATU COMPANY
10 year corporate tax exemption for qualifying activities or an Investment Tax Allowance of 100% for five (5) years
Other incentives:-
I. Exemption from EPU property acquisition guidelines
II. Each foreign knowledge worker employed by an ISP approved company will be eligible to import or purchase a
duty free car for his or her own personal use
III. Flexibility to recruit foreign knowledge workers subject to the guidelines of the Iskandar Malaysia Expatriate
Committee (IMEC)
IV. Flexibility from foreign exchange administrative rules set forth by BNM
FLAG HIP INCENTIVE – FI CAL & NON-FI CAL
5 year corporate tax exemption / Import duty & sales tax exemption / flexibility to recruit foreign workers / flexibility from
foreign exchange administrative
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RECENT MARKET UPDATES
Traders Hotel Puteri Harbour has
rebranded itself asHotel Jen Puteri
Harbour, Johor. It’s the 10th hotel to adopt
this new brand name
UEM unrise Bhd unveiled its
comprehensive development plans for the
2nd phase of Gerbang Nusajaya, which
consists of a 210ha integrated eco-friendly
tech park (“Nusajaya Tech Park”) and a
212.4ha motorsport city (“FASTrack
Iskandar”)
United Malayan Land Bhd is collaboratingwith Thailand’s
Onyx Hospitality Group
to
open the first Amari Hotel in Malaysia. It will
be part of a mixed-use development in
Johor Bahru named “Suasana Iskandar”.
Upon completion in 2017, Amari will have
242 rooms with indicative average price per
room between RM1,158 and 1,552 per
night
Iskandar Malaysia
declared as a
Regional Centre of
Expertise for
ustainable
Development
(RCE)
to promote
sustainable future
developments and to
provide a platform for
individuals and
organizations to
generate ideas.
Employees Provident
Fund
(EPF) entered
into a joint venture
with Australia’s
Goodman Group
to
develop logistics
assets in Klang Valleyand Iskandar Malaysia
with a total
development value of
RM1.4 billion.
CapitaLand’s Ascott Limited
(Ascott) raised
its presence in Iskandar with its 3rd property
(the 214-unit Citadines Medini Nusajaya)
Australian developer Walker Corporation
together with an investment firm namedWang & Wong Pte Ltd
will develop
“Senibong Hills”. This development consists
of landed homes and high-rise apartments
together with a club house.
3 new firms to invest approximately RM600
million
in Medini:
Goldbury is establishing a globalinformation technology (IT) automotive
hub in Medini
Brandt International will set up a BPO
and knowledge process outsourcing
(KPO)
Vision Technology Consulting will
develop a development centre that willprovide Oracle technology
implementation and related outsourcing
services as well as enterprise mobility
solutions.
February
2015
March
2015
April
2015
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RESIDENTIAL PROPERTY MARKET As of end of 2014, the total supply of residential properties in IM stands at
429,018 units
, an increase of 2.3% y-o-y.
Landed properties
= 274,010 units (64% of supply)
Non-landed properties
= 56,087 units (13%)
Low cost housing = 98,921 units (23%)
The total existing stock of condominiums/serviced apartmentsincreased by 65%
between 2006 (20,512 units) and 2014 (33,840 units)
Residential units under construction =106,487 residential units
(37% are landed properties, 58% non-landed properties and 5% low
cost housing)
Residential units under planning =141,960 units
Therefore,248,447 new units
in the pipeline = 58% increase over the existing supply.
Source: JPPH
2 1 7 , 8
7 7
2 3 0 , 7
5 5
2 3 9 , 4
5 6
2 4 6 , 4
2 1
2 5 1 , 2
4 9
2 5 4 , 9
0 4
2 6 0 , 7
1 6
2 6 8 , 7
5 5
2 7 4 , 0
1 0
35,79739,509
44,044 46,306 48,412 49,164 50,110
51,658 56,08796,76497,734
97,914 98,06898,669 98,753
98,767 98,92198,921
5.7%
5.0%
3.6%
2.5%
1.9%
1.1%
1.7%
2.4% 2.3%
0.0%
1.0%
2.0%
3.0%
4.0%
5.0%
6.0%
-
50,000
100,000
150,000
200,000
250,000
300,000
350,000
400,000
450,000
500,000
2006 2007 2008 2009 2010 2011 2012 2013 2014
Total Residential upply in IM (2006 – 2014)
Total Low-Cost Stock Total Non-Landed Residential Stock
Total Landed Residential Stock Growth Rate (%)
1 9 , 6
0 3
2 1 , 3
7 2
2 2 , 7
3 1
2 4 , 6
6 5
2 5 , 2
0 5
2 5 , 2
0 5
2 6 , 1
2 9
2 7 , 3
1 3
2 7 , 4
8 4
909
2,471
2,9152,985 2,985 2,985
2,9853,349
6,356
-
5,000
10,000
15,000
20,000
25,000
30,000
35,000
2006 2007 2008 2009 2010 2011 2012 2013 2014
Cumulative High Rise Residential Properties in IM
Serviced Apartment Condominium / Apartment
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NEW LAUNCHED CONDOMINIUMS IN IM The incoming supply of condominiums reached its peak in 2013, as a total of
34,949 units
were launched
during the year with the majority(80%) located in Johor Bahru City Centre and surrounding suburbs.
As a comparison, Kuala Lumpur launched about 22,000 units of condominium units in 2013 and the number of
private residential units launched in Singapore was 15,885 units only (inclusive of landed and non-landedproperties) that year.
2014 was a slow year as the number of newly launched condominium unitsshrank by 63%
from a year ago.
Only 12,934 units were launched in 2014. This could be a consequence of the recent cooling measures such
as the raise in Real Property Gains Tax (RPGT), minimumforeign threshold raised to RM1 mill ion
as of 1
May 2014 and the tight lending market.
However, any development that was approved before 1 May 2014 does not have to comply with the RM1million threshold rule. For instance, units in “Causeway Regency”, launched in January 2015, can still be sold
below RM1 million to foreigners.
Besides, the lack of new launches could be attributed to the low take-up rates of launched projects, as
developers with new stock to the market could have taken their cue from the performance of their
competitors.
In April 2015, we witnessed the launch of “Causeway Regency” (228 units) and “Jade Palace” (2,456 units).
Jade Palace is a 13.6-acre waterfront development jointly developed by Greenland Group and IWH that
consists of 13 towers of residential building (4 towers are open for booking now). Anecdotal evidence shows
that Phase 1 was 80% booked. During the same period, MB Group launched their wellness development
located in the Sungai Pulai Ramsar Wetland Reserve and named “Sungai Pulai Wellness Resort”, and offered a
preview of its high-rise residential development at Tampoi named “Aliff Avenue” (282 units).
In December 2014 was announced that all new serviced apartment applications will be frozen, but thosewho have received their approval prior to this announcement can continue their projects.
Causeway Regency
Aliff Avenue
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RECENT LAUNCHES IN IM
cheme Name Location Built-up (sq ft) Price Range (psf) No of Units Take Up Rates
Aliff Avenue
Tampoi 538 - 1,098 RM400-640 282 Preview only
Princess Cove - Phase 1
Tanjung Puteri 469 - 1,343 RM750 - RM1,300 868 50%
G Residence
Plentong 653 - 1,552 RM450 - RM500 480 70%
Citywoods
JBCC 764 - 1,240 RM540 417 40%
Acquaint Danga
Danga Bay 549 - 4,730 RM900 - RM1,200 818 80%
Centara Residences
Nasa City 785 - 1,690 RM660 - RM732 232 20%
Causeway Regency
JBCC 776-1,408 RM800-980 228 n/a
Jade Palace
Danga Bay 488 - 1,047 RM850 2,456 Booking stage
eventh Cove
Masai 907 – 4,861 RM978 – RM1,149 392
Grand Medini
Medini 474 - 1,149 RM770 - RM1,100 672 50%
Citrine @ The Lakeview
Medini 933 - 1,348 RM850 328 75%
Meridin - Phase 2
Medini 318-885 RM1,000-1,100
Tower A: 583
Tower B: 322
Tower C: 322
Tower B: 100%
Source: Savills Research
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OFFICE PROPERTY MARKET As at end of 2014, the total private purpose-built office supply stands at 5.89 million sq ft. Refurbishment works at Menara Komtar were recently
completed (total NLA is 409,000 sq ft) and is now fully occupied by Jcorp and its subsidiaries.
There is no major office cluster located in IM per se, but approximately 95% of the existing offices are located within the JB City Centre with most
of the buildings being old.
Overall occupancy rate averages 73% across Iskandar Malaysia, with only a few well-located office building that manage to achieve higher than85%, such as Menara MSC Cyberport, JB City Square Office Tower, Menara TJB, Menara Ansar and Menara Landmark. Menara Landmark is
located within an integrated development that consists of 4 levels of medical suites as well as the Doubletree by Hilton.
Rental rates for prime office space in Johor Bahru City Centre are ranging between RM2.50psf and RM3.50psf per month.
Future office supply is mostly sited within master-planned developments such as Medini Business District, Medini Central, Iskandar Waterfront
District, Iskandar Financial District & Sunway Iskandar
Apart from the manufacturing sector, sectors that require office space such as Financial Advisory & Consulting, Education, Creative Industries,Tourism and Healthcare are encouraged to move to Iskandar Malaysia.
Source: JPPH
Name Developer Expected
Completi
on Date
ize
(sq ft)
tatus
Medini Lakeside UMLand 2018 683-2,120 Open for
registration
Markers Iskandar -
Tower A
Ra Ta Land Sdn
Bhd
2017 1,500-
4,300
Tower A
100% leased
Markers Iskandar –
Tower B
Ra Ta Land Sdn
Bhd
2017 1,500-
4,300
140 units
available
Lakefront Southkey –
Tower A & B
Southkey
Properties Sdn Bhd
2015 A: 80,000
B: 50,000
n.a.
Citrine Office Suites Sunway Iskandar
Sdn Bhd
2017 746-1,671 100% sold
elected New Launches of Office uite in IM
40%
45%
50%
55%
60%
65%
70%
75%
80%
2006 2007 2008 2009 2010 2011 2012 2013 2014
A
a
O
c
R
e
Occupancy Rate of Purpose Built Office -Private
Source: Savills Research
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RETAIL PROPERTY MARKET New completions in 2014 include:
KOMTAR JBCC (405,000 sq ft)
Sutera Mall – Entertainment City (approximately 300,000 sq ft)
Mydin Pelangi Indah (21,528 sq ft)
As of 2014, there is a total of 12.49 million sq ft of NLA of retail space in IM, with retail space per capita slightly over 6.33 sq ft per
person (lower than Greater KL’s 7.6 sq ft per person).
Average prime rents in IM are ranging between RM5psf and RM20psf; however, JB City Square, located opposite the CIQ, managed
to achieve as high as RM40psf.
Retail growth in IM is evident asproven by the opening of Johor Premium Outlet Phase 2 (2013) and KOMTAR JBCC (2014). Moreover,
AEON Tebrau City is undergoing expansion to house a multi-storey car park, a department store and a supermarket.
With the population expected to grow and plans set in place in IM to boost its economy, this will support the growing retail market in
the years to come.
Major malls in the pipeline are listed below:-
Note: (*) Tropicana Danga Bay Mall was initially announced at 1 million sq ft and it has now reduced to 250,000 sq ft.
Source: Savills Research
Name Developer Expected Completion
Year
Net Lettable Area
(sq ft)
Paradigm Mall WCT - 750,000
Midvalley Southkey Megamall Southkey Properties Sdn Bhd 2018 1,500,000
Tropicana Danga Bay Mall Tropicana Danga Bay - *250,000
Capital 21 Hatten Group 2017 1,000,000
Country Garden Lifestyle Mall Country Garden Danga Bay 2017 430,000
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INDUSTRIAL PROPERTY MARKET
Source: JPPH
As at end of 2014, the total number of existing supply of industrial properties in Iskandar Malaysia stood at 14,159 units. Terraced
factories accounted for 54%, followed by detached (21%) and semi detached factories (21%).
2014 observed a growth rate of +2.65% Y-o-Y, which is the highest since 2006.
This strong growth can be attributed to the new quality industrial parks (Frontier Industrial Park, i-Park@SiLC, Setia Business Park,
SiLC, Skudai 8 Biz Hub and Indahpura Industrial Park) which were launched in 2013 and 2014.
With other industrial developments coming on stream in a couple of years such as the Nusajaya Tech Park, Sime Darby’s Harvest
Green Industrial park and UMLand’s Dover Business Park, the supply is expected to improve significantly. In addition, we expect more
MNCs shifting their operations to IM, as foreign investments currently account for 38% of the total committed investments.
-
2,000
4,000
6,000
8,000
10,000
12,000
14,000
2006 2007 2008 2009 2010 2011 2012 2013 2014
Current Existing Supply of Industrial Properties by Type
Terraced factory Semi-detached DetachedFlatted factory Ind!trial com"le# $l!ter
409
909
33%
- 10
272
804
1,029
1,681
- 23
2%1
-
200
400
600
800
1,000
1,200
1,400
1,600
1,800
T e r r a c e d f a
c t o r y
S e m i - d e t a
c h e d
D e t a
c h e d
F l a t t e d f a
c t o r y
I n d ! t r i a l c o m
" l e #
$ l ! t e r
T o t a l n u m b e r o f U n i t s
Future Supply of Industrial Properties by Type
Incomin& Ind!trial S""ly
'lanned Ind!trial S""ly
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THANK YOU
For further enquiries, kindly contact:
avills (Malaysia) dn Bhd
Research & Consultancy
Disclaimer: This document is prepared by Savills (Malaysia) for general informative purposes only. Whilst reasonable care has been exercised in preparing this document, it is subject to change and these
particulars do not constitute, nor constitute part of, an offer or contract; interested parties should not rely on the statements or representations of fact but must satisfy themselves by inspection or otherwise as to
the accuracy. No person in the employment of the agent or the agent's principal has any authority to make any representations or warranties whatsoever in relation to these particulars and Savills (Malaysia)
cannot be held responsible for any liability whatsoever or for any loss howsoever arising from or in reliance upon the whole or any part of the contents of this document.
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