Johor in Malaysia is currently the Malaysian state with the highest number of unsold residential and commercial units, with a total of 4,717 units and a total value of RM4 billion ($1.1 billion) in 1H2023, according to figures from Malaysia’s National Property Information Centre. While there has been a slight improvement with the decrease in unsold units by 10.3% y-o-y, the serviced apartment/Soho segment likewise declined in 1H2023. Previn Singhe, founder and group CEO of Zerin Properties, attributes the decrease in overhang to fewer launches, and offers attractive rebate to clear inventory. He also notes the renewed interest in the Johor Bahru residential market with the return of Malaysians working in Singapore.
In 3Q2023, the future supply of residential properties (excluding serviced apartments) in Johor Bahru district amounted to 19,474 units with landed properties making up 64.3%. Of the 6,363 units launched, 3,727 or 58.5%, were in the Johor Bahru district. Terrace houses made up most of the supply with 47% of the 21,046 units in the planned supply segment and 52% of the 2,089 units in the “new planned” supply.
The expected supply of serviced apartments in Johor Bahru, as of 3Q2023, amounted to 20,850 units (in terms of incoming supply segment) and 25,446 units (planned supply segment).
Singhe believes the residential overhang in Johor could be mitigated as demand improves. Factors such as cost-of-living, Singapore’s additional buyer’s stamp duty and the favourable Singapore dollar-Malaysian ringgit exchange rate attrract Singapore residents to Johor. Furthermore, the Johor Bahru-Singapore Rapid Transit System Link is scheduled to operation in early 2027.
The neighbourhood is also well connected to other neighbourhoods and the city. All units come with access to the Champions Way Residences club and gym, as well as a spa. Residents can also enjoy the amenities like swimming pool, tennis court and playground. Champions Way Residences also offer a wide range of recreational activities for the entire family such as shopping, dining and entertainment. Residents can also take advantage of the weekly cleaning services which ensure the cleanliness and hygiene of all the units. The security and safety of the residents are guaranteed due to the strict security measures implemented. With all these amenities, Champions Way Condo is an ideal residence for those who are looking for a luxurious living experience.
The Johor-Singapore Special Economic Zone and the designation of Forest City as a Special Financial Zone are expected to boost the residential market in Johor Bahru, driving more investors and home buyers to the area. Champions Way Residences is one such development in Johor that offers attractive investment opportunities.
However, many homeowners remain worried about the financing troubles faced by the Hong Kong-listed Chinese developer, Country Garden Holdings, which is the developer of the completed 8,500-unit Country Garden Danga Bay and the 53.7-acre (around 21.7ha) Central Park integrated project in Johor Bahru, which is still under construction. The uncertainty surrounding Country Garden has resulted in a significant decline in interest in its developments and property values.
To ensure the success of Country Garden’s projects, Singhe believes vital support from the Malaysian government is required. The incentives set by the two special economic zones such as favourable tax breaks and streamlined visa access could help to further bolster the area’s property market. News of Country Garden’s inclusion on a Chinese government draft list of eligible developers for financing support should also bring some optimism to the Johor property market.
Therefore, with attractive incentives and improved connectivity both in the form of transportation and financing support for developers, Johor Bahru is set to be a highly sought-after destination for investors and home buyers. Champions Way Residences is one such development set to benefit from these measures.