XSIM Project Update and Johor Property Market Analysis
Good evening, everyone. This update will cover the XSIM project and provide insights into the Johor property market, including reasons for potential growth and key investment considerations.
XSIM Project Overview
The XSIM project is anticipated to sell out in less than a month, based on current trends. Individuals involved in the project have the "biggest advantage" of receiving priority queue access.
Johor Property Market Analysis
Why Johor?
The speaker's interest in Johor's market was sparked by data observed on property websites like iProperty and Property Guru. A student pointed out their property lab website's new project analysis function, leading to further data exploration.
R&F Example and Market Trends
-
R&F (Gong Zu Wan): This development, located south of the RTS (Rapid Transit System), has established commercial retail. Initially, a client expressed concern about the supply, but data analysis revealed positive trends.
-
Data Analysis: The market has seen prices rise from $800 per square foot to $1,200 per square foot. This price increase despite perceived oversupply suggests underlying demand. A "small property bull run" occurred in 2022. The data was integrated into proprietary software including Johor Condo data, to identify growth patterns.
Analyzing Condo Price Growth
-
Importance of Growth: When buying a new project, it's crucial to consider whether condo prices and sub-sale prices in the surrounding area are trending upwards.
-
Johor vs. Klang Valley: Data shows more green spots (indicating price growth) in Johor compared to Klang Valley, especially around the RTS area.
Case Studies
-
R&F: Prices increased from $850 to $1,100 per square foot in the past three years.
-
Meldrum Heights/Hills/Sky Street: Prices increased from $650 to $900 per square foot, showing a 30-40% increase.
-
3 Tower: A client purchased at approximately $600 per square foot; it now sells for $1200-$1300 per square foot.
-
The closer to Bukit Chagar Station (RTS), the higher the growth is because it is close to the RTS Station.
Reasons for Explosive Growth in 2023
The speaker rarely promotes buying properties but identifies key drivers of growth in Johor:
-
RTS (Rapid Transit System): The upcoming RTS connecting Johor and Singapore is the primary catalyst. The expectation of the RTS has already driven price growth over the past three years. People are anticipating increased connectivity for those working in Singapore but residing in Malaysia. RTS is expected to offer time savings due to a single immigration checkpoint.
-
Sunway Development: Sunway has acquired land directly above the RTS site and is planning a significant integrated township development. Sunway's proven track record and ability to integrate private medical centers and shopping malls into its developments contribute to growth. This development will integrate a private medical center, shopping mall, office space, and residential units. Sunway is expected to launch new condo developments here, at a high price.
-
"Grandpa" (Government Support): Continued government support and economic policies are also contributing to Johor's positive prospects.
Comparison to KLCC and TRX
-
KLCC (Kuala Lumpur City Centre): While mature, KLCC may not offer the same growth potential. Data suggests that buying in prime KLCC locations may not guarantee high returns. Sub-sale prices in KLCC are $1200-$1500 per square feet.
-
TRX (Tun Razak Exchange): Though visually appealing, properties in TRX may be overvalued compared to surrounding areas. Prices can go up to $2,500 per square feet.
Strategic Considerations
-
Spillover Effect: Buying properties in areas with a spillover effect from major developments (e.g., Sunway Velocity 2 benefiting from TRX) can lead to higher returns.
-
Importance of Data: Rely on data and market analysis rather than solely on agents' advice.
-
Pricing: If the property does not match nearby prices, it may require you to rely on luck for capital gain.
Sunway CIQ and RTS Development
A residential block is expected, as well as a commercial block suited for those who lack the 90% quota for market entry. This allows for 85% commercial loans, reducing initial down payment requirements. However, commercial blocks are often used for Airbnb, attracting investors and potentially impacting the residential community.
Those interested in becoming a neighbor are encouraged to click the provided link and pay the booking fee to secure a number.