The latest subsale transaction data from JPPH shows that a housing development in Iskandar Puteri recorded the highest residential sales in Johor in 2022. The article intends to explore hidden gems in Iskandar Puteri which might suit prospecting homebuyers and property investors.
Last year, we witnessed Malaysia’s residential property market regain its strength and vibrancy at a steady pace – NAPIC’s 2022 Property Market Report stated that residential transactions increased by roughly 22% YOY in terms of both volume and value. More than 54,000 units of new launches were recorded in 2022 – where Johor came in third with 7,718 new launch units (14.3% share). Out of this figure, the southern state recorded a respectable sales performance of 42.6%.
Deep diving into Johor, Iskandar Puteri appeared as an up-and-coming residential area among homebuyers. It recorded 1,197 residential transactions in 2022, just slightly behind the top contender and evergreen area of Johor Bahru, with 1,205 transactions.
With the reopening of Malaysia-Singapore borders in April 2022, Iskandar Puteri with its proximity to the Woodlands Causeway and the Tuas Second Link proves to be an enticing proposition to local homebuyers, especially those who commute daily to Singapore for work. Good connectivity links to the JB city centre are a main selling point too.
A background on Iskandar Puteri
Let’s get to know about Iskandar Malaysia first, to gain a better context. Iskandar Malaysia is Malaysia’s first economic growth corridor launched in the 10th Malaysia Plan. It measures 547,669 acres (2,217 sq. km.) and aspires to be a self-contained, sustainable metropolis of international standing.
There are five flagship zones in Iskandar Malaysia, two of which are focused on urban development (Zone A – Johor Bahru city centre and Zone B – Iskandar Puteri), while the remaining three are transport- and logistics-related (Zone C – Western Gate Development, Zone D – Eastern Gate Development and Zone E- Senai-Skudai).
Iskandar Puteri, formerly known as Nusajaya, is considered as a key component of Iskandar Malaysia, where most catalyst projects are developed within the area. Located west of Johor Bahru city, Iskandar Puteri is Southeast Asia’s largest privately-owned land bank with 24,00 acres (100 sq. km.)
Though Iskandar Puteri accounts for a mere 4% of Iskandar Malaysia’s total area, it is one of the nation’s most-recognised developments. It scored global attention in 2012 by obtaining the Best Masterplan Award at the FIABCI Prix d’Excellence Awards.
It is administered by Iskandar Puteri City Council (MBIP) and is home to Kota Iskandar, Johor’s administrative centre. It is the second largest city after Johor Bahru, and this area’s projected population size is 500,000 by 2025. Most lands in Iskandar Puteri are residential and industrial, focusing on mixed property development, state and federal administration and warehousing.
UEM Sunrise Bhd spearheads Iskandar Puteri as the master property developer with close collaboration with Iskandar Regional Development Authority. Other key plays also include Iskandar Investment Bhd and Mulpha International Bhd.
Is Iskandar Puteri a good place to live in?
A few critical factors make this city a preferred choice for homebuyers, especially when putting down their roots. Iskandar Puteri certainly checks off most of the criteria on the list!
Firstly, Iskandar Puteri’s strategic location within the Iskandar region and proximity to the neighbouring city of Singapore is one of the main driving forces of its potential.
In terms of accessibility, residents in Iskandar Puteri can easily travel to Johor Bahru city through Iskandar Coastal Highway and Pasir Gudang Highway, while the Tanjung Kupang Road links Iskandar Puteri to the Pontian District. It is connected to other states via the Second Link Expressway, connecting to the North-South Expressway at Senai.
It is also strategically located within a 45-minute drive of Singapore’s Changi Airport and Johor’s Senai International Airport (30 mins). Alternatively, Iskandar Puteri residents can travel out to or from Singapore via Puteri Harbour International Ferry Terminal, located within 10 minutes from the city.
A wide array of eateries, shopping and entertainment are available in Iskandar Puteri, which are great avenues for quality leisure time with family. Some notable shopping in Iskandar Puteri includes Sunway Big Box Retail Park, Mall of Medini and Eco Galleria.
Educity, a 305-acre education enclave, is another key catalyst project in Iskandar Puteri. It houses several international universities, which include the University of Southampton Malaysia Campus, Newcastle University Medicine Malaysia, and the University of Reading. Apart from tertiary education, there are international schools for both primary and secondary students such as IDRISSI International School, Stellar International School, and Sunway International School, to name a few. Renowned hospitals such as Columbia Asia Hospital and The Gleneagles Medini have also opened its doors in the area to provide first-class medical treatment.
In terms of natural attraction, the largest public park in Malaysia, Sireh Park, is also located in Iskandar Puteri along with the Heritage Forest, which features a myriad of themed forests. There are also famous tourist attractions such as LEGOLAND Malaysia and Puteri Harbour.
What is the 2022 residential property performance in Iskandar Puteri?
Iskandar Puteri caters to all housing needs – from luxurious landed homes and service residences to affordable homes. Most properties in Iskandar Puteri are freehold tenures, an essential criterion for many homebuyers.
According to iProperty.com.my’s latest data on Transactions Section, the overall median residential property price (landed and high-rise) in Iskandar Puteri is RM385 per sq ft between February 2022 to January 2023 – demonstrating an 8.01% year-on-year (Y-o-Y) capital growth from 12-months before.
This growth is a positive indication of the housing price appreciation in Iskandar Puteri despite the country’s challenging property market.
The terraced homes in Iskandar Puteri also registered an 11.06% capital growth (Y-o-Y) in a similar period and currently transacting at a median of RM397 per sq. ft. This surge in the value of terrace houses reaffirms the positive demand for such landed properties amongst the homebuyers.
What are the popular housing types in Iskandar Puteri?
Terraced homes in Taman Bukit Indah gained the most traction in terms of property sales, with 327 transactions between Jan 2022 and December 2022, the highest in the state of Johor. These terrace homes were sold at RM415 per sq ft, 7.5% higher than Iskandar Puteri’s 2022 average median price per sq ft of RM386 per sq ft.
Horizon Hill had the second most transacted terraced homes in Iskandar Puteri (99 transactions) at RM460 per sq ft, followed by Nusa Sentral (67 transactions) at RM442 per sq. ft.
The second most popular property type bought in Iskandar Puteri within the same time period was cluster homes. The top three projects with the most transactions are Horizon Hills (RM386 per sq ft), Eco Botanic (RM429 per sq ft) and Taman Bukit Indah (RM419 per sq ft). Similar to terraced homes, the cluster houses had a significant capital growth Y-o-Y of 9.96%, with a median of RM391 per sq. ft.
Semi-detached houses were the next favourite property type in Iskandar Puteri, a preferred choice for many home upgraders. These transacted properties gain a YOY capital growth of 9.1%, with a median of RM341 per sq ft. Townships with the most transacted semi-detached houses are from Taman Bukit Indah (RM349 per sq ft), East Ledang (RM296 per sq ft) and Horizon Hills (RM430 per sq ft).
The serviced residence was the homebuyer’s most preferred choice in terms of high-rise properties. These properties transacted with a median of RM387 per sq ft and recorded a capital depreciation of -4.83% Y-o-Y. The top three projects with the most transactions are Nusa Perdana Apartment (RM364 per sq ft), The Sky Loft Premium Suites (RM412 per sq ft) and D’Inspire Residence (RM424 per sq ft).
New launches in Iskandar Puteri
1. Senadi Hills – 2-storey terrace house
This freehold development comprises 120 units of 2-storey garden homes. The units have a land size of 20ft by 70ft and offer 4-bedroom and 3-bathroom layouts, with built-ups ranging from 2,185 to 2,317 sq ft. The development also features a neighbourhood commercial square, Senadi Square. The selling price starts from RM623,900, which includes a 15% discount for Bumiputera buyers.
2. Aspira Parkhomes (Double storey link houses)
Located amidst lush greenery and refreshing natural settings, the gated and guarded development promises elegant homes that ooze contemporary charm. With built-up sizes ranging from 1,931 sq ft to 2,154 sq ft, the link homes comprise 4 bedrooms and 3 bathrooms (Type A) and 4+1 bedrooms and 4 bathrooms (Type B). Residents will be able to enjoy urban farms, herb gardens, verdant parks and exciting facilities within a sustainable living environment.
3. Sunway Emerald Residence (Link, Cluster and Semi-D house)
The Sunway Emerald residences are located within Sunway City, a 1,800 acres award-winning integrated township in Iskandar Puteri. This hilltop township boasts a scenic view, is low-density and provides clubhouse facilities to its residents. It is also within walking distance to the 20-acre Emerald Lake Garden, Sunway International School and Citrine Hub which houses amenities such as Jaya Grocer, Mr DIY, Starbucks and Sunway Pharmacy.
4. Meridin Suites Residence – Serviced Residence
This project offers units with a selling price starting from RM346,000. The project has a total of 756 units (12 units per floor) with build-up sizes ranging from 570 to 2,088 sq. ft. Units are partially furnished with kitchen cabinets, hood and hob, bathroom fittings as well as wardrobes for the bedrooms.
5. Sunway Citrine Residences – serviced residence
The Citrine is the first phase of development of The Lakeview precinct under Sunway Iskandar. It is a low-density residential project with 328 units of 1, 2 and 3-bedroom layout options. The units are also designed with the dual-key concept and built-up sizes ranging from 626 sq ft to 1,528 sq. ft. The selling price is from RM 525,000 to RM 2,650,050.
Who should buy into Iskandar Puteri?
We spoke to Benjamin Ong Chin Yee, Mah Sing’s CEO of Property Subsidiaries, to get some of his views on what makes Iskandar Puteri attractive to homebuyers.
“Iskandar Puteri’s greatest advantage, apart from its proximity to Singapore, is it being very well-planned. The city provides strategically located townships and incorporates well-designed infrastructure and connectivity. These newer projects are typically gated and guarded developments with integrated parks, wellness activities as well as retail convenience, making it perfect for residents who are looking for privacy and exclusivity.”
“Many existing homeowners in the west of Johor Bharu city are making the switch to upgrade their homes in Iskandar Puteri to have a better lifestyle for almost the same cost of living.”
“First-time home buyers are equally attracted to houses in Iskandar Puteri as most properties are relatively new and come with good financial packages offered by developers who help buyers to do without an upfront down payment, discount packages on home renovations and so on. For those who have the means, opting to live in a slightly more mature township such as Taman Bukit Indah, Mutiara Rini and Eko Setia would be a good choice too as these areas have grown in great neighbourhoods.”
Like many other areas in Johor, Benjamin Ong shares that, the 2-storey terrace house is the go-to property for most families and upgraders, especially homes with a land size of 22’x70’ and a price range of between RM400 to RM500 per sq ft.
We also asked Benjamin Ong if he has any advice for prospective buyers interested in purchasing a home in Iskandar Puteri, and he confidently states, “‘you cannot go wrong with a reputable developer who builds and manages their properties well.”
First-time homebuyers who are conducting their due diligence during the property research phase should check out Blacklisted property developers in Malaysia and Why is it important to study approved plans before buying a house?
Conclusion
Unlike Johor Bharu city, Iskandar Puteri is a master-planned new urban area with proper infrastructure. One of the few well-built cities in Johor, Iskandar Puteri has become the focal point of new developments, particularly for double-storey terrace and link houses priced as well as semi-Ds.
With its proximity to Singapore and townships strategically connected to the Second Link Crossing, Iskandar Puteri has established itself as a preferred location for many local Malaysian who commute daily to Singapore. With all the education, health and recreational amenities in place, Iskandar Puteri is indeed becoming a catch for many mid- and high-level executives who want to raise their families in a safe and conducive living environment