JOHOR BAHRU: When Singapore business owner Jonathan Gan purchased a 4-room condominium at Lovell Country Garden in 2018, he thought he had clinched his dream retirement home.
Furthermore, Gan’s business in Singapore has been affected by the pandemic, and he now needs to sell the apartment to gain some liquidity. while homes that were left unsold have stayed empty. Landed property is also facing potential depreciation.According to statistics compiled by property consultancy firm Henry Butcher, the value and volume of residential property transactions in Johor had been climbing “rather steadily” from 2017 until 2019.
“Many developments were targeting a large proportion of overseas buyers. With the prolonged effects of COVID-19 restricting movements, it has been challenging for developers or investors to offload either for sale or rent,” said Choy. MM2H president Anthony Liew was quoted by local media last Sunday saying that the suspension has curtailed interest from Singapore and China buyers in Johor property.
The two towers, standing at 65 and 70 storeys, have 3 or 4 room units of between 2,207 and 2,659 sq ft. “I think considering the circumstances, I have no choice but to lower the rental price. I notice that there have been no offers. I am patient. Hopefully, when the pandemic is over, there will be people who are interested,” said K.The demand from Johoreans has also weakened, as they reel from the effects of the pandemic.
She noted that the impact on the Johor economy meant that some Johoreans have turned to the state government for financial assistance,“A year later, with Johor’s economic umbilical still cut off from Singapore, and Malaysia suffering a big wave of COVID-19, informal social support activities have been ongoing," added Khor.
“Of these, approximately 34 per cent of the overhang service apartments/sohos are priced over RM1 million which were believed to have been designed specifically for foreign investors from Singapore and China,” the report said.Besides condominiums and serviced apartments, those with landed properties in the southern state are also concerned about depreciating values.
“With COVID-19, some of my neighbours who are Singaporeans have decided to sell their homes for RM1.1 million to RM1.2 million. It is spoiling the market a bit but I can understand why with the borders closed,” said Mustaqim. “Some months I barely make any transactions, so I’ve been looking around for another job to tide through over the next few months,” he said.
CNA has approached the Johor chief minister's office, as well as the state housing and local government committee for comments on the state of the property market and whether measures will be taken to assist industry players.Another headache for owners whose properties have been left empty is their susceptibility to break-ins.
Rahmah Zainolabidin, a Singaporean who chose to remain in Johor Bahru during this pandemic, told CNA that she has been taking care of homes belonging to her family members who have chosen to return to the city-state. “It is sad because she already got robbed, but now she has to fork out more money to try to sell it off. And in this market, I’m convinced there will be little interest, especially with the number of robberies reported in the area,” Rahmah added.
"Many buyers are aware that landed homes are susceptible to break-ins in Johor, so they tend to look for those located within gated areas where there are security checks," said Tay.