While consortiums and large-scale developers have drawn much of the attention in Iskandar Malaysia, the wheel of development is also being turned by other, often smaller, sometimes newer, developers

Niche Players

Much of the publicity regarding development in Johor – especially in Iskandar Malaysia – has gone to the “big boys”, developers who are major players in the local/international scene. In particular, the glamour of petro-dollars from the Gulf has captured much attention from the media and the public.

This is perhaps not surprising, given the ambitious master plan which entails plenty of high-end developments designed to appeal to international property investors, expatriates and young professionals. Office space, recreational amenities and retail facilities are planned in tandem with residential “lifestyle developments” – and depending on your budget, you can enjoy vast land and even a waterfront view. In short, there is a level of quality, sophistication and sometimes sheer magnitude that not just any developer can provide.

However, there are other players making their mark here – local developers with a niche in Johor, or developers looking to ride the wave of growth in the Southern state.

Thirst for More Land

Among homegrown players is Segamat-based KSL Holdings Bhd. With a two-decade track record in Johor, KSL has four major projects in Iskandar Malaysia which will keep it busy for the next eight years: KSL City, Taman Nusa Bestari, Taman Bestari Indah and Taman Kempas Indah. KSL City, with a gross development value of RM600 million, is comprised of two towers of luxury condominium units, two towers of a three-star hotel and a retail shopping complex, while the GDV of Taman Nusa Bestari is RM380 million; Taman Bestari, RM780 million; and Taman Kempas Indah, RM468 million.

KSL Holdings executive director Ku Hwa Seng was quoted to have said that the group is looking for more land in Iskandar Malaysia for future development. He also called on the Johor Government to up its promotion of the state as a preferred investment destination, along with integrated commitment from government agencies and departments for growth. Opening up more land for industrial activities would attract more Singapore-based companies and small/medium enterprises to relocate to Johor.

Homegrown Developers

Another Johor-based developer is Southern Gateway (M) Sdn. Bhd, a member of the J.C. Chang Group of Companies. The integrated plantation group has grown since its inception in 1957, and is now focused on property development as one of its core business entities. Its showpiece is Adda Heights, an up-market mixed residential development within the Tebrau Corridor in Johor Bahru.

The 500-acre (200ha) township offers easy access to various locations throughout Iskandar Malaysia, retail and recreational outlets, golf and sports activities, high-tech medical centres, as well as schools and colleges. Southern Gateway has even collaborated with a neighbouring developer to build a dedicated trumpet interchange offering immediate access from the Tebrau Corridor to the North-South Expressway.

Younger Buyers

A small and growing player is LBI Capital Bhd, a conglomerate which diversified into property development in 2004 in Ara Damansara. The company plans to launch three projects this year, including 21 shop lots worth RM14 million in Tampoi, located along the Skudai Highway in Taman Mewah.

“Property development now contributes more than 95 per cent to our earnings,” LBI Capital  managing director Datuk Ng Chin Heng was quoted to have said recently, adding: “We expect to launch projects at the end of the year as consumer confidence picks up.”

Meanwhile, KL-based Malaysia Land Properties Sdn Bhd (Mayland) is upbeat on sales of its recently-launched Palazio serviced apartments (Phase 2) in Mount Austin. Demand for studio units and 3-bedroom serviced apartments is growing, said the company's head of leasing, Eddy T.P.Tan – perhaps a sign of the growing buyer profile of investors and young professionals. Palazio features six 14- to 21-storey residential towers worth RM300 million, launched in three phases.

Most of the Phase 1 units were bought by existing property owners in Johor, and investors from Singapore, Indonesia and Kuala Lumpur, Tan was quoted to have said recently. He attributed this to the fact that Mayland is among the pioneer developers in Johor to offer studio units from 420 sq ft, and is the only developer in Mount Austin to offer high-rise residential units, both within close proximity to Johor Baru city centre and the Austin Hill Golf Course.

Singapore Connection

Development in Johor has also gotten a much-needed boost following the Dubai debt crisis and subsequent pullout by Dubai investors. Rekindled close ties with our Southern neighbour has led to Singapore agreeing to become a partner in one of the projects in Iskandar Malaysia, a wellness township.