Iskandar Malaysia is not oversupplied, says Johor prince
Iskandar Malaysia is not oversupplied, says Johor prince
Just wait and see how the economic zone will look like in 9 years
Johor Crown Prince Tunku Ismail Ibrahim downplayed speculation that Iskandar Malaysia, the expansive economic growth corridor near the Singaporean border, is fumbling towards oversupply due to overenthusiastic foreign residential developers.
The monarch, who said he has been following the development of Iskandar Malaysia since 2006, said that a population boom will catalyse demand in the area well into the next decade.
“With a population of 1.7 million that is expected to increase to three million in 2025, we need 666,000 houses, so it is not true that there is an oversupply of 410,000 houses,” he said on the sidelines of a launch party Tuesday for Fastrackcity at Pinewood Iskandar Malaysia Studios in Iskandar Puteri.
More: Will oversupply impact the Iskandar Malaysia residential market?
The prince’s comments allays fears that developers in Iskandar Malaysia are building beyond their capacity to lure buyers and occupants. The rapid rise of Chinese developments in particular “scares the hell out of everybody,” Bloomberg reported last month.
More than 350,000 private homes are in the pipeline for Johor state where Iskandar Malaysia is located, according to Bloomberg, citing data from the National Property Information Centre.
Tunku Ismail urges focus on Iskandar Malaysia to be directed to areas such as local skills enhancement for job creation and increasing transit options to Singapore. “We need to not only beef up security, but also the perception of a safe city,” he said.
Read next: 10 reasons why you should invest in Iskandar Malaysia
Source: Property Report