JB secondary housing growth stagnant

KUALA LUMPUR (June 5): Johor Baru’s residential market showed no growth in values and transactions in the first quarter of this year (1Q2015), according to the latest edition of The Edge-KGV International Property Consultants Johor Baru housing monitor.

Values of many secondary market homes in locations covered by the monitor – including popular landed housing schemes in areas such as Taman Mount Austin, Taman Bukit Indah, and Taman Sutera Utama, as well as apartments such as Molek Pine Tower 2 and Petri Condominium – were flat for at least six months.

KGV International Property Consultants (Johor) Sdn Bhd director Samuel Tan says the poor quarter-on-quarter market performance could be due to “the cautious stance taken by buyers careful not to overprice their purchases”.

Meanwhile, data collated by theedgeproperty.com as at June 1 showed that transactions of high-rise homes fell drastically from 4Q2013 onwards, right after transactions and average prices psf peaked at 249 and RM370 psf in 3Q2013.

The drop in transactions followed the announcement of further cooling measures in Budget 2014. However, prices then recovered slightly, with minor fluctuations, over the next few quarters.

As at 4Q2014, transactions fell to 33, but average prices psf rose to RM320 – the highest since 3Q2013.

Tan says there were also fewer new launches and previews in 1Q2015 for landed homes and high-rises.

A few notable developments during the quarter include UEM Sunrise Bhd’s launch of the 4,000-acre Gerbang Nusajaya, Kuala Lumpur Kepong Bhd’s land swap of 2,000 acres in Frasers Estate, Kulai for 500 acres in Gerbang Nusajaya, and Sunway Construction Sdn Bhd’s RM170-million contract to design and build the Coastal Highway Southern Link that will connect its Sunway Iskandar township in Medini to the Second Link.

The Johor Baru housing market in 1Q2015 is analysed in-depth in The Edge-KGV International Property Consultants Johor Baru Housing property monitor 1Q2015 that appears in the June 8 issue of City & Country, the property pullout of The Edge Malaysia.

This article first appeared in The Edge Property pullout, on June 5, 2015.