HSR, RTS answers to curb high unsold homes issue in Johor

KUALA LUMPUR 16 July - High number of overhang residentials in Johor may be resolved with Johor Bahru-Singapore Rapid Transit System (RTS) and Kuala Lumpur-Singapore high speed rail (HSR) constructions. 

As some areas in the state namely Puteri Harbour and Medini saw over the huge supply given the high traffic, the HSR and RTS should help to improve demand for properties of the areas.

Maybank Investment Bank Research (Maybank IB) said, given the oversupply of high-rise units, most local developers have switched their focus to landed properties. 

“Puteri Harbour-Medini and the Forest City project will take some time to mature as these areas are still new and developing. 

“Moreover, there is also a lack of facilities and services that can support the area at this juncture,” said Maybank IB reported.

Having said that, buying sentiment and confidence could improve when construction of the HSR and RTS starts. 

Read : Unsold residential highest in Johor up to 5468 units, why?

Meanwhile, UEMS Group and Sunway Berhad are potential beneficiaries of improved infrastructure and connectivity in Iskandar Malaysia. 

Previously, National Property Information Centre (NAPIC) data for the property market as of first quarter this year found Johor has recorded the highest overhang completed residential with 5,468 unsold units compared to other states in Malaysia. 

Out of the unsold units total in Johor, 1,711 are condominium units or apartments and 2,086 are two to three-storey terrace houses.

It is followed by Perak and Selangor with 4,919 and 4,844 unsold units respectively, of the same period. - DagangNews.com