KINIBIZ Sales transactions of properties in Iskandar are down approximately 48% for the first half of 2014, a massive fall. Analysts aren’t too optimistic of a turnaround next year, considering an already sluggish property market.

What will it take to jump-start Iskandar’s fortunes?

Limit Chinese building frenzy

Pointing to the frenzy of overbuilding by Chinese developers, especially at the waterfront in Iskandar, some market observers have suggested a tighter leash on foreign developers.

Although foreign investments are important for Iskandar, many feel that the authorities are not doing enough to ensure that projects are developed apace with market requirements.

Faizul Ridzuan, a property adviser, feels that some degrees of control over foreign developments in Iskandar are needed to safeguard its long-term growth.

“Perhaps that is one of the solution. Like everything else, it’s all about supply and demand. It’s basic economics. Limiting availability of supply will result in premium pricing and vice-versa,” said Faizul

Shifting government policies

Another critical area that needs addressing is the constantly shifting government policies – both state and federal – that have confused foreign buyers.

According to Khalil Adis founder of Khalil Adis Consultancy Pte Ltd in Singapore, there needs to be more consistency and clarity in government rulings and regulations on foreign purchases in Iskandar. He points to the Malaysian government’s Budget 2014 last year as a prime example.

“There seemed to be a lot of questions when Budget 2014 was announced. It was not very clear. Singaporeans are used to things being in black and white, so we had to spend a lot of time doing outreach programmes to educate Singaporeans,” said Khalil.

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