Too fast, too soon
V Sanjugtha | 15 Mar 2019 00:30
Beyond the usual reasons of high house prices and Bumiputera quotas, the often overlooked factors contributing to the high number of unsold homes in Johor is the hastened pace of residential real estate development versus a slower growth in the state’s economic clusters.
Iskandar Malaysia was designed based on a strategy of stirring economic growth through nine economic clusters which would help drive growth in real estate.
The residential sector is a facility to be provided to the users of the economic activities, but what has actually happened is the other way around, observes Rahim & Co director, research & strategic planning, Sulaiman Akhmady Mohd Salleh. “Even before the factories and education sector came in, we started building, which can be seen from the sheer number of houses in Johor,” he tells FocusM.
Statistics in Iskandar Malaysia’s 10-year progress report shows that investments in the residential sector were about 27.5% of total investments in 2007 while investments in the manufacturing sector made up about 46.12% of the total investments of RM25.8 bil that year.
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