Johor to offer good investments from this year-end, says KGV International

KUALA LUMPUR (July 27): KGV International Property Consultants (Johor) Sdn Bhd executive director Samuel Tan (pictured) urged investors to have a proper strategy to grasp good investments in the Johor property market, as it inches closer towards rock bottom.

The market is entering a state of uncertainty, he said during the Malaysian Property Summit Mid-Year Review 2016. "We are near to the level of no confidence, which means in a matter of time, the market will reach the bottom and start to recover."

"According to what Kenanga Investment Bank Bhd head of equity research Sarah Lim mentioned just now, there is a 10-year cycle in the property market. As such, if 2014 was the beginning of the slowdown, the market would reach the bottom in 2018."

If that is the case, there will be a lot of opportunities in the market from the end of this year and one should prepare capital to pounce on these opportunities, he added.

Tan said the property transaction volume will still decline over the next two years, but it is a good sign as the market will rebound after the period.

As at the first quarter of this year (1Q2016), Johor recorded 9,450 units transacted, dropping by 24.3% y-o-y and 17% q-o-q.

According to him, there are wrong perceptions of Iskandar Malaysia, including oversupply, falling prices and that the economic corridor has failed.

A lot of people are avoiding buying property in Johor as they are afraid of the perceived oversupply situation in the southern region, he noted.

"Who says don't buy in Johor's property market? You should buy! There are a lot of good property to buy, it is just a matter of where to buy, what to buy and at what price."

On the other hand, property prices are still holding well and Iskandar Malaysia is successful, he said.

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