Iskandar needs a further 500,000 new homes

JOHOR BARU: Iskandar Malaysia still needs about 500,000 new homes to cater for an estimated three million-strong population by 2025.


Iskandar Regional Development Authority chief executive officer Datuk Ismail Ibrahim said the state only had about 700,000 homes presently.


“Iskandar Malaysia is growing at an annual rate of 7% to 8% and we expect the population to grow from 1.45 million in 2005 to 3 million in 2005.


“This population will need a total of 1.2 million homes,” he said during a special media briefing here.


He added that while there was a slowdown in the property sector in Iskandar, he did not expect it to last long as there was a need for new homes.


“As for capital controls imposed by China, so far none of the China-based developers are affected as construction is ongoing.


“These are big-time and long-term investors,” he said, adding that these China-based companies were not here to buy land and flip it for profit.


Ismail added that even with the 20,000 to 25,000 homes being developed by the Chinese, the state was still in need of more houses.


However Ismail reiterated that the property sector was not among the sectors being promoted in Iskandar Malaysia.


He expressed optimism that the property sector would bounce back and said that there was huge demand for homes priced between RM100,000 to RM350,000.


“So far Iskandar Malaysia is growing on track,” he said, adding that this was despite the uncertainties globally.


He added that Iskandar Malaysia was growing much higher than the national average of 4.5% to 5% annually.