Nusajaya is the hot spot of the Johor Iskandar development area. Financial economist Shan Saeed shared about why investment in Nusajaya is going to pay off in the long term. Watch the video below:
Shan Saeed said:
From 2006 onwards, Iskandar, Malaysia has attracted over $30 billion worth of inflow and has had continued and sustainable foreign investment coming across the region and in industries, especially in Zone A and B – Danga Bay and Nusajaya. Iskandar has been a success because it has demonstrated a strong backing from the government due to her involvement in the region’s development, infrastructure, and economic landscape.
Let’s talk about Legoland theme park, for example, which opened in 2003. To date, it has attracted 1.5 million visitors and is continuing to grow. Most of the Chinese, Japanese, and Korean investors when visiting Singapore are extending their trips and staying seven days instead of three or four. They go visit Legoland, they stay over there and spend, and then visit other places as well. So, Legoland is important to the development that is happening with global investors.
There has been an alternative investment that is going on in Flagship A that is called the Iskandar Waterfront, which is more than 3,000 acres of land in Danga Bay. It is very, very popular among investors and is probably one of the hottest projects in Flagship A.
Iskandar Waterfront Holdings is planning to get listed by Q4 2013, as per the market intelligence report, which will really be a big boost for the Bursa Malaysia. This could herald a new avenue for investors to make a substantial gain in Tropicana Danga Bay projects and make a strong killing from the investments.
The development of the area has also set a new standard for land and home prices within Danga Bay. This project could substantially boost the net asset value of a few developers and land owners already in Iskandar, Malaysia.
I read in a newspaper, I think three or four months back that a few Singaporean companies are willing to go with Iskandar Waterfront on public offering and would like to co-develop the Danga Bay Water Land specially. One of these companies is CapitaLand from Singapore which has been very active in this region and other important projects.
In Flagship B, Nusajaya has been attracting big funds from the Singaporeans, Koreans, and the Japanese. It’s a residential zone at its best. It is very close to Singapore’s skyline and only a forty-five-minute drive from the Singapore Changi Airport. This lovely residential metropolis is complete with educational, medical, and theme park infrastructure that has been used to attract residents from Singapore and other countries like China and Japan.
Another project that is coming up is the Medini, which is another significant and important project in Flaship B, and is getting quite hot.
The number one priority for global investors is that it should be a free hold without any strings or restrictions. These real estate properties are quite low in price and are still undervalued as for my insight, so investors are taking positions in these projects.
With recent property high price in Singapore which has risen by roughly 40-50% in the last seven years, Nusajaya stands an ideal opportunity for investors to take stakes in the region, make capital gain, and have sustainable returns. Properties in Singapore, as you know, are very expensive – their present evaluation is around three times the appraisal for Nusajaya.
Investors can execute a property arbitrage with a cross-border transaction deal. At present the price in Iskandar averages around RM 700 per square foot. This means that the land prices in Iskandar’s residential area is only 20% of the prices of residential areas in Singapore. Imagine: just 20% of Singapore’s residential property.
I believe that, going forward, there will be a lot of cross-border transaction deals happening. Just to share with you, there are 40,000 agents in Singapore who are selling Iskandar projects to high-value investors. This could be used as a real catalyst for future growth with the Iskandar regions, especially at Nusajaya.