So, it’s finally started. The buildings are nearly done, but where’s the boom?
I hope that if you bought a unit in HH or JB, you will be staying in it, or at least intend to stay in it in the near future. It will be really difficult to sell units at a significant gain in the short/medium term for sure. To be honest, I’m pretty peeved with the Malaysian government’s lack of foresight – what kind of goondu will approve plans to build so many residential units at the same time? Like 6000 apartment units by a single developer and thousands more along the same stretch of road? And what place does a shoebox unit costing in excess of RM1million have in Johor Bahru?! JB is very far from being the capital of Malaysia. My friends, rationality has been totally thrown out of the window.
Anyway, here’s some news about how a major developer has shelved plans to build a trade hub. And here’s the PR company trying to do some media service recovery by calling a bursting bubble as “Plan B“.
The problem with investing in Malaysia is that the authorities keep changing their mind about how to develop and grow a particular area. Usually, they start off with a fantastic idea. They get people excited and pump a bunch of money into the project. Everything looks rosy, and more people buy into the idea. Halfway through, the folks on top get greedy and start veering off the original plan in view of faster and bigger profits. Corruption probably starts creeping in at this point, and the project starts going to the dogs.
Don’t get me wrong. I STILL think living in JB and working in Singapore is a great idea. With the exchange rate hitting 2.7 now, it’s even more shiok! Despite the stupid 6% GST (which I think was very badly implemented and probably half the establishments that charge the GST pocket the extra), and the increase in the tolls, life is still good here.
With the way things are going though, I just wish to warn folks who are thinking of buying to shop CAREFULLY. At this point, buying a completed unit probably would be more prudent due to the high vacancy and huge supply of units coming onto the market. It’s a rare thing in Singapore to have a developer go bust or stop building a project halfway, but it’s a very real thing here in Malaysia.
Happy hunting folks, I believe there should be some bargains coming onto the market really soon now. :)