Property Investment Musings

1. New property prices in Johor Bahru are at stratospheric levels and we suspect, on a square foot basis, it's probably the highest in Malaysia now. We don’t have statistical data to prove but it sure does feel like it.
2. Consumer goods as well as produce at the wet markets are obscenely priced and we wonder how the lower income group even survive these days.
3. When asked why Johor Bahru is experiencing this nasty phenomenon, the finger is readily pointed at Singaporeans. They seem to be at the receiving end on almost anything that has a price on it.
4. We think it’s not fair to blame them for everything that’s price related. To a large extent, Johor Bahru’s prosperity is largely dependent on Singapore. Just like most border towns of the world, prices tend to be higher than the national average.
5. It is said that over 100,000 people cross into Singapore on a daily basis for their employment. These Malaysian’s bring back valuable Singapore Dollar into Malaysia and enjoy a higher than average per capita income.
6. With a stronger purchasing power, these Malaysians also possess higher disposable income to spend on discretionary items such as a second property, holidays, better quality food, luxury items, etc. So, Johoreans who earn Dollars have also contributed to price increases.
7. The state of Johor has ample land for its entire population many times over. Look around and it’s still possible to see oil palm plantations within 25km radius of Johor Bahru City.
8. Then why has prices gone up? Well, if one were to see positively, we have to thank our Southern neighbours. Their strong Dollar has created demand and investors who bought into property many years ago are able to realise profits on their investment.
9. Singaporeans in a way have helped create wealth just by buying into new properties and older properties within the same area automatically increase in value. Isn’t this also enriching Malaysians?
10. To attract investments, our Government also improved infrastructures such as the Coastal Highway, fibre optic connections, tax breaks for returning Malaysians, etc.
11. Didn’t this improve the standard of living for Johoreans? Aren’t we able to reach home faster and have faster internet connections?
12. While they have contributed to price escalation, we must balance that criticism with the merits that Singapore has done for Johor Bahru. The city state not only provides employment, it also assisted in better lifestyle and helped create wealth and conveniences.
13. With that, we would like to wish a belated birthday to Singapore. May you prosper strength to strength!