Malaysia Johor Bahru
- Thread starter alanrrll
- Start date
Hi mate :
I am surprised you posted something about Johor Bahru here as this city is not widely known in Australia.
I reside mostly in Singapore and Singapore being the neighbour of Johor Bahru (JB), a city in Malaysia, receives lots of news regarding its property development. I can share with you what I heard.
Recently, alarm bells have been raised, even by the minsters of Singapore, about the excessive supply of houses in JB. It is said that around 300,000 new units are going to flood the market in the next 10 years!! Assuming each unit has 3 to 4 people staying in there, this requires a population of 1 million people to occupy all the new apartments/houses. It is practically impossible for JB to find this many people to stay here. JB is after all, just a major city in Malaysia - something like Perth in Australia. It is NOT the capital of Malaysia. So how can it grow that much to absorb so many people?? Moreover, Malaysia has been experiencing huge exodus of the very enterprising local Chinese for years. With lesser and lesser of them around, how many local people can afford to buy the newly built houses?
Many Singaporeans have purchased houses ranging from cheap to luxury types here. Those who bought 3 to 4 years before all should earn money due to capital appreciation. But anyone who is to buy now, at the inflated prices, and with demand dropping, are taking a huge risk. Look, the hype over the Iskandar development plan and the legoland there have waned off now.
My advise - stay away from Johor Bahru!!
I am surprised you posted something about Johor Bahru here as this city is not widely known in Australia.
I reside mostly in Singapore and Singapore being the neighbour of Johor Bahru (JB), a city in Malaysia, receives lots of news regarding its property development. I can share with you what I heard.
Recently, alarm bells have been raised, even by the minsters of Singapore, about the excessive supply of houses in JB. It is said that around 300,000 new units are going to flood the market in the next 10 years!! Assuming each unit has 3 to 4 people staying in there, this requires a population of 1 million people to occupy all the new apartments/houses. It is practically impossible for JB to find this many people to stay here. JB is after all, just a major city in Malaysia - something like Perth in Australia. It is NOT the capital of Malaysia. So how can it grow that much to absorb so many people?? Moreover, Malaysia has been experiencing huge exodus of the very enterprising local Chinese for years. With lesser and lesser of them around, how many local people can afford to buy the newly built houses?
Many Singaporeans have purchased houses ranging from cheap to luxury types here. Those who bought 3 to 4 years before all should earn money due to capital appreciation. But anyone who is to buy now, at the inflated prices, and with demand dropping, are taking a huge risk. Look, the hype over the Iskandar development plan and the legoland there have waned off now.
My advise - stay away from Johor Bahru!!
Thanks for the valuable advice!!
As I was thinking Johor Bahru next to Singapore is just like Shenzhen next to Hong Kong but in 20 years ago, and now Shenzhen is very populated and house price rocket risen, will JB be the same or similar?
Hi mate
I know what you are thinking. But comparing HK with Shenzhen and Singapore and JB are like comparing apples with oranges.
Firstly, Hong Kong and shenzhen are governed by China. It is to china's interest that shenzhen does well. That explains why China dumped in so much money to develop Shenzhen and gives it special Autonomy status to spear head it's development! On the other hand, JB is under Malaysia while Singapore is a sovereign country by itself. Malaysian government has all along been jealous of singapore's success while Singapore government is unwilling to "kowtow" to its giant neighbour. To worsen natters, Malaysia is predominantly Malays while Singapore is hugely Chinese. So with such incompatibility, each country will try to keep the fruits of their labour in their own side and not allow it to benefit the other party.
Even if there is no such rivalry as mentioned above, it will be hard for JB to grow like Shenzhen. The main reason is the perceived incompetency of the Malaysian government, which is very much Islamic based now. JB, 2 years ago changed their rest day from the normal sat and sun to Fri and sat now - in line with Muslim praying time, but which seems anti-commerce to most people. What good can you expect from a govt like this even with Singapore at its doorstep??
Lastly, it is evident that the brightest of the Malaysians, mainly the Chinese are emigrating from Malaysia, many to Australia. And Malaysia has a hard time attracting foreign talent at the same time. What good will your investment be in a place like this? Think carefully..
I know what you are thinking. But comparing HK with Shenzhen and Singapore and JB are like comparing apples with oranges.
Firstly, Hong Kong and shenzhen are governed by China. It is to china's interest that shenzhen does well. That explains why China dumped in so much money to develop Shenzhen and gives it special Autonomy status to spear head it's development! On the other hand, JB is under Malaysia while Singapore is a sovereign country by itself. Malaysian government has all along been jealous of singapore's success while Singapore government is unwilling to "kowtow" to its giant neighbour. To worsen natters, Malaysia is predominantly Malays while Singapore is hugely Chinese. So with such incompatibility, each country will try to keep the fruits of their labour in their own side and not allow it to benefit the other party.
Even if there is no such rivalry as mentioned above, it will be hard for JB to grow like Shenzhen. The main reason is the perceived incompetency of the Malaysian government, which is very much Islamic based now. JB, 2 years ago changed their rest day from the normal sat and sun to Fri and sat now - in line with Muslim praying time, but which seems anti-commerce to most people. What good can you expect from a govt like this even with Singapore at its doorstep??
Lastly, it is evident that the brightest of the Malaysians, mainly the Chinese are emigrating from Malaysia, many to Australia. And Malaysia has a hard time attracting foreign talent at the same time. What good will your investment be in a place like this? Think carefully..
Yes foreigners are allowed to buy Malaysian houses. But I think they have some form of control now. If I am not wrong, non residents can only buy houses that are more than Malaysian dollars $500,000. (Around A$150,000)
As for businesses, what I know is you need a local partner to set up a company here in Malaysia.
As for businesses, what I know is you need a local partner to set up a company here in Malaysia.
Oh thanks for the tips!! You must be the local expert!
