Despite the generally pessimistic outlook of Johor’s property market, Johor-based developer Astaka Holdings Ltd is confident things will look up next year as the market exits its “corrective phase” and embarks on another surge of activity prompted by the growth of Iskandar Malaysia’s core sectors.
Astaka Holdings CEO Datuk Zamani Kasim noted that many analysts have pointed out that Johor’s population of just over 3.5 million residents – coupled with a 2% annual growth – is not able to meet Iskandar’s goal of housing 3.5 million residents by 2025, let alone sustain the state’s aggressive residential developments over the past three years.
“It would not be realistic to generate an assessment of the property sector in Johor just by looking at the population growth projections of 2% per year, when it does not take into consideration temporary residents that will be living and working in Johor,” he said via a statement today.
He added that the 2% population growth evaluation also does not take into account that approximately 20% of Johor’s current population will be maturing over the next three years, reaching the home-renting or home-buying age.
Addressing the negative projections for Johor by property sector analysts, Zamani explained that whenever there is a property launch, there is always an immediate spike in sales.
“When a number of developments come online and are sales-ready at the same time, this spike can look hyper-inflated. Then, when the initial fervour has settled down, one enters what is called a ‘corrective period’ where the spike balances out. This spike in sales is normal and will always level-out when the developer or developers hit the 50% to 60% sold benchmark,” Zamani said.
He said this was currently the case and the developer had factored this into their planning.
Zamani also belives the property industry is entering the corrective period, and the most important thing to keep an eye on is the interest received in the development.
“I am happy to say that The Astaka @ One Bukit Senyum has kept momentum and the interest levels are sustained. As at last week, we have already achieved 70% sales volume for The Astaka @ One Bukit Senyum. We are well ahead of our projections with no sign of a slowdown,” Zamani said.
The Astaka @ One Bukit Senyum is a two-block condominium that was launched since December 2013. It consists of two majestic towers of 70 and 65 storeys. Each floor of the tower comprises four units of luxurious condominiums of 3, 4 and 5 bedrooms with built-ups ranging from 2,207 sq ft to 5,554 sq ft. It will be the tallest residential project in Southeast Asia upon completion in 1Q2018.
Riding on the expectations of a projected spike, Astaka Holdings will be launching the rest of One Bukit Senyum, an 11.85-acre integrated development comprising signature Grade-A offices, high-end retail, 5-star hotels and serviced residences, within the year.
One Bukit Senyum is 1km from the Customs, Immigration and Quarantine (CIQ) Complex. It is poised to become the new Central Business District (CBD) for Johor Bahru City. - The Edge Property