Despite the threat of an oversupply of homes in Iskandar Malaysia, property heavyweight CapitaLand remains optimistic about the potential of the region.
The Singapore-based developer is moving forward with plans to build a premier waterfront residential community on A2 Island in Danga Bay, comprising high-rise apartments, landed homes and other supporting amenities.
A statement released by the company said, “CapitaLand takes a long-term view of this project and is confident of the long-term prospects of Iskandar Malaysia. The development will be paced and executed in phases over a period of 10 to 12 years according to market conditions, as originally envisaged.”
It is understood that conditions on the acquisition of land parcels on A2 Island have been met by Hallmark Connection Sdn Bhd (HCSB) under a sale and purchase agreement (SPA) between HCSB and Iskandar Waterfront Sdn Bhd (IWSB).
CapitaLand subsidiary CLM Isle Investment owns 51 percent of HCSB, while IWSB and Temasek own 40 percent and 9.0 percent of HCSB respectively.
During a parliamentary session in May 2015, Minister for Culture, Community and Youth Lawrence Wong warned of a future housing glut in Iskandar that could devalue homes.
“Based on data from Malaysia’s National Property Information Centre (NAPIC), there are around 336,000 new private residential units in the pipeline — more than the total number of private homes in Singapore,” said Wong.
He added that buyers have become more cautious with surveys showing the number of Malaysian properties purchased through local property agencies has plunged from 2,609 units in 2013 to 838 last year.