Pricing shocker at Puteri Harbour, Iskandar, Malaysia – 26 Sep 2014

In light of the property slowdown in Iskandar, the latest indicative RM1,000 psf launch price for the latest launch Southern Marina at Puteri Harbour, Iskandar had some investors gasping for oxygen.

This is because just prior to this, another project at Puteri Harbour, The Puteri Cove had launched “sea view” units, priced at between RM1,300 to RM1,450 psf and marina view” units at between RM1,500 to RM1,600 psf.

Because The Puteri Cove registered sluggish sales, the Southern Marina developers did not want to suffer the same fate.

As mentioned before, it’s hard to access caveat data of property transactions in Iskandar. One usually has to rely on an array of developer’s indicative price list to get a sense of where the price is going.

Interestingly enough, I managed to dig out an old price list of Encorp Marina. I had been interested to buy a marina/sea fronting unit back in 2012 but as the better units were blocked for sale, leaving only the ones at the lower floors, I walked away. A quick look at the price list showed that prices for the better units were going for about RM1,250 psf.  Hence, prices have indeed corrected since 2012.

Country Gardens which launched 9,600 units for sale in Danga bay still has about 60% of inventory stuck. Guangzhou R&F Properties, which has launched 3,000 units for sale in Tanjung Puteri recently had its credit rating downgraded to BB-, as it is not expected to hit its sales target.

For those who have bought into Iskandar, be mindful of the latest pricing development there.  Most projects won’t be completed until 2016/2017 and already some developers have issued delay notice to buyers. If you haven’t already profited by flipping your Iskandar property, be prepared to hold on for an extended period.

Douglas Chow

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