Part 1: Why JB CIQ Properties Defy the Johor Oversupply Trend
Key Takeaways
- Jb property oversupply will pull down prices across the board is misguided. Property markets are highly localised.
- JB CIQ properties cater to a niche market prioritising walkability to CIQ RTS hub. This makes them unaffected by oversupply in non-comparable locations
- Demand fundamentals remain strong—with occupancy surpassing 80%. JB CIQ properties continue to command premium prices, driven by sustained commuter demand.
The JB Property Oversupply Misconception
Government reports and media frequently highlight a JB property oversupply situation in Iskandar Malaysia. This fuels speculation of a broad-based price decline.
However, this assumption is flawed—property markets are highly localized. Price dynamics cannot be assessed at a macro level.
The JB CIQ area is a prime example. Skysuites, V Summerplace and Sky Habitat were the incumbant properties in this area. They have consistently achieved near fully occupancy and are within walking distance to the CIQ RTS hub. They attract a specific segment—commuters who prioritize accessibility to Singapore.
For instance, a JB property oversupply say, in Forest City and Medini, with lower rental prices, does not shift demand there, because it is not a substitute for JB CIQ living.
Unlike commodities that can be redistributed to meet demand, real estate is immovable. Excess supply in one area cannot be “transferred” to another area where demand is high. This is more pronoun in JB CIQ area where there is a chronic shortage of land for development. For example, recent launches like Gen Rise require demolishing of older buildings to give way for new development.
This fundamental distinction explains why JB CIQ properties continue to perform independently of broader Johor Iskandar oversupply trends. Median prices are nearly doubled that of JB Outer City and Tebrau Coast area. Furthermore, this price gap will likely continue to widen as RTS nears completion and Singapore Woodlands prices will start having an influence on JB CIQ prices.
