Medini breaks new frontiers

Once a lush forest, Medini is now slowly coming to life with a hive of activities and new standards in luxury living.

Paradiso Nuova by Zhouyuan Iskandar located in Medini in Nusajaya, Johor. Photo: Courtesy of Zhouyuan Iskandar Sdn Bhd.

By Khalil Adis

For the newly initiated, Medini, located in Nusajaya, Johor, can be quite an assault on the senses, especially since it is a brand new township where the entire buzz is centred at.

Located in the heart of Iskandar Malaysia, this is where the breakneck pace of development has been taking place since Iskandar Malaysia was first mooted by former Malaysian Prime Minister Abdullah Badawi in 2006.

As you drive past the Coastal Highway from the Second Link, you can’t help but be amazed by the sheer size of the developments taking place once you reach the sweeping intersection.

That was exactly how I felt when I was first covering Iskandar Malaysia as a property journalist way back in 2008.

Coming out of my cocoon in Singapore, that year witnessed my first foray into Medini, Iskandar Malaysia as part of a media junket trip to understand and write about what the buzz is all about.

I had heard a lot about Medini and Iskandar Malaysia back then but I wasn’t sure what to make out of it.

However, once I got there, it was something that completely blew my mind.

Measuring just 9.3 sq km, it is hard to imagine that this was once a lush pristine forest filled with oil palm plantations.

Now, Medini has transformed into a Grade ‘A’ site with top-notch infrastructure that rivals even that of Singapore’s.

The Malaysian government has so far spent RM5.9 billion to develop Medini into a world class city with infrastructures such as roads, lightings and sewerage treatment plants.

Medini – the spark that ignited the Iskandar Malaysia success story

Medini will be the hub of Islamic finance and is home to Khazanah-Temasek Holdings JV project and LEGOLAND Malaysia. Photo: Courtesy of Iskandar Investment Berhad.

Blessed with land that stretches as far as they eyes can see, Medini’s area spans from the iconic Legoland Theme Park landmark in the lifestyle zone to the creative buzz of film-making at Pinewood Iskandar Malaysia Studios, near the leisure zone and business district.

First identified as a special economic zone by Iskandar Investment Berhad (IIB), the statutory body has over the years developed various catalytic industries to spur the success of Iskandar Malaysia.

From tourism to creative industry, Medini is now slowly becoming a bustling district with a tourism hub at Legoland Theme Park and a film-making facility at Pinewood Iskandar Malaysia Studios.

This was a far cry from the Medini that I was covering when Legoland’s construction was taking place in 2010.

During that year, I went into the heart of Iskandar Malaysia again to write a special report to update readers on the progress taking place.

Armed with a safety helmet and boots, this time round, I braved the elements as I witnessed first hand the construction of what is now the area’s iconic landmark – Legoland Theme Park.

Indeed, the rapid pace of development that Iskandar Malaysia had undergone since 2006 had caught most Singaporeans by surprise, as back then, many had thought Iskandar Malaysia would not take off.

Fast forward to 2015, Iskandar Malaysia is the most successful by far of the five economic zones in Malaysia.

According to Iskandar Regional Development Authority (IRDA), Iskandar Malaysia has attracted a total cumulative investment of RM156.51 billion from 2006 to October 2014.

Of this total, 51 per cent of RM79.17 billion of investments has been realised.

Booming residential sector near Legoland Theme Park

LEGOLAND Malaysia Water Theme Park will give a boost to the property sector and lead to job creation for Johoreans. Photo: Courtesy of LEGOLAND Theme Park.

As more and more investments and jobs are created in and around Medini, it has led to demand for residential homes to support the various catalytic industries.

Due to its limited size, however, land here is extremely rare and much sought after,

The first game-changer occurred when Temasek Holdings and Khazanah Nasional announced that they will be jointly developing two projects here that arose from the land swop deal in 2010 – Afiniti Medini and Avira.

Since then, Medini has attracted many developers to launch projects, among them Zhuoyuan Iskandar Sdn Bhd, who is the developer of Paradiso high-end residential project in Medini.

“One of the key main reasons we chose to invest in the Malaysian market was the clear identification of the different flagship zones and defined blueprints for each zone. In addition to this, there were considerations such as the ease for foreign investors to enter into the market and form partnerships as well as regulatory incentives that include tax exemptions up to 2020 and no restrictions on foreign buyers. It’s a rare opportunity in Malaysia that aided our decision,” said Wang Bin Wu, chief executive officer for Zhuoyuan Iskandar.

Indeed, Medini is the only area in Malaysia that has been designated as a free trade zone to make it foreign-investor friendly.

For example, in Medini, foreign investors are not subjected to the minimum purchase price of RM1 million and Real Property Gains Tax ((RPGT).

As we speak, the area in and around Medini is buzzing with expatriates from Frost & Sullivan to lecturers at EduCity who now call Iskandar Malaysia home.

Figures from IRDA shows that from January to October 2014, Iskandar Malaysia has secured RM24.87 billion in new investments.

Among the promoted sectors, manufacturing recorded the highest cumulative committed investment at RM50.97 billion.

Chartering new frontiers with revised city blueprint and luxury living

As more and more quality jobs are being created in and around Medini, so are demand for quality homes and infrastructure.

Realising this, IRDA has developed a new city blueprint that will take Medini and Iskandar Malaysia into a new frontier.

“IRDA has also developed several blueprints and the new version of the comprehensive development plan (CDP) incorporates the implementation plan and programmes such as the Iskandar Malaysia Smart City Framework that incorporates the environment, economic and social aspects. It will also help us in planning for the enablers to support future catalyst projects,” said Datuk Ismail Ibrahim, chief executive for IRDA.

The second game changer in Medini is Zhuoyuan Iskandar who has upped the ante in terms of luxury living in the heart of Iskandar Malaysia.

In Medini, the developer’s high-end residence called Paradiso Nuova is breaking new grounds in terms of finishings and fittings.

“Our focus is to develop high quality real estate that is benchmarked to top international standards that will appeal to buyers as a compelling investment opportunity. We have designed Paradiso Nuova to be a class above other developments in Iskandar,” said Wang.

Indeed, Paradiso Nuova offers discerning home owners something not found in other developments.

Paradiso Nuova is an oasis of grandeur that offers personalised attention and luxury from the ground-up featuring a range of luxurious apartments, stunningly designed by world-class architects Ong & Ong. Each unit will be completed with quality finishes such as marble and solid timber floorings. The apartment is also brandished with fittings from Bosch, Signature Kitchen, Teka, Franke, Toto and Grohe.

“All units are also equipped with a 5-tiered security system to provide full confidence in safety for all residents. Paradiso Nuova’s prime location ensures that residents will have easy access to the amenities surrounding the property in addition to enjoying its high-end facilities,” said Wang.

Paradiso Medini is blessed with a 4.2 acres backyard of urban green space at the doorstep. Zhuoyuan Iskandar will enhance this green space into uniquely designed recreational park providing its’ residents with a vast array of communal leisure facilities.

Top 10 tips on investing in Iskandar Malaysia

The future landscape of Iskandar Malaysia by 2025. Photo: Courtesy of Iskandar Waterfront Sdn Bhd.

Iskandar Malaysia will be a challenging market to maneuver from 2014 onwards. Here are ten tips to help you navigate your way post-Budget 2014.

By Khalil Adis

Iskandar Malaysia was mooted in 2005 by former Malaysian Prime Minister Abdullah Badawi and is now the favourite investment destination among Singaporeans. According to UEM Sunrise, Singaporeans accounted for around 74 per cent of property buyers in Nusajaya while Iskandar Regional Development Authority (IRDA) puts Singapore as the top foreign investor as of March 2013 at RM6.608 billion.

Following Prime Minister Najib Razak’s Budget 2014 announcements two weeks ago, foreigners will be affected by new regulations that will kick in effectively from 1 January 2014 and/or much later. The new measures include an increase in minimum sum from RM500,000 to RM1 million. Another significant change is the increase in the Real Property Gains Tax (RPGT) from 15 per cent in the first to third year and 10 per cent in the third to fifth to 30 per cent flat from the first to fifth year and 5 per cent from the fifth year onwards. Previously no RPGT was applicable for foreigners and companies after the fifth year.

Within the state of Johor, a new levy will also be implemented from a flat rate of RM10,000 to 4 to 5 per cent of a property price* from next year onwards. Bumiputras will also not be allowed to sell their property in the resale market to foreigners. With so many rules and regulations that foreigners need to be mindful of, here are ten investment tips to help you navigate your way to Iskandar Malaysia from 2014 onwards.

Tip one: Invest in shop lots

Capital City 21 in Tampoi, Johor Bahru. Photo: Courtesy of Capital City Property Sdn Bhd.

The supply for shop lot units in Johor is limited compared to residential properties. According to the Malaysian Ministry of Finance Valuation and Property Services Department (NAPIC), there is new supply of 6,048 and 3,601 commercial units in the first and second quarter of 2013 as well as 1,604 and 2589 completed units in the first and second quarter respectively. In terms of demand, shop offices are the most in demand among Malaysians according to iProperty.com’s second half of 2013 survey at 16 per cent compared to other commercial properties.

In comparison, the residential sector is looking at a bumper supply of 964,982 units (697,753 – existing stock, 113,583 – incoming supply, 153,582 – planned supply) in the second quarter of 2013. This means it will be challenging to rent out your property or to sell it in the resale market as this total supply is more than Kuala Lumpur’s 496, 238 units (425,199, existing stock, 48,543 – incoming supply, 22,496- planned supply). However, do bear in mind from 2015 onwards, government service tax (GST) applies for properties with commercial titles.

Tip two: Invest in Medini

Paradiso Nuova by Zhouyuan Iskandar located in Medini in Nusajaya, Johor. Photo: Courtesy of Zhuoyuan Iskandar Sdn Bhd.

Medini is now the latest foreign investors’ darling as this is the only place in Malaysia where foreigners can still purchase properties below RM1 million in 2014.

Designated at a free trade zone, the federal government has lifted restrictions for foreigners here to ensure Medini will be a buzzing district once the Rapid Transit System (RTS) network connects to the MRT line by 2018. The RTS station will be located just next to LEGOLAND Malaysia. Medini is also a prime area where Khazanah Nasional and Temasek Holdings are involved in two joint-venture projects – Afiniti Medini and Avira Wellness Centre.

Property developers in Medini say they are seeing interest among buyers in the area.

One such development is Paradiso Nuova by Zhuoyuan Iskandar where prices range from RM600,000 to RM1.5million.

“About 60 per cent of our units fall below the RM1 million mark,” said Liang Thow Ming, director of sales and marketing for Zhuoyuan Iskandar. “With the recent budget announcement, foreigners who are interested to invest in other parts of Malaysia and with a budget of below RM 1 million, will now be diverted to Medini creating a surge as you have mentioned. Projects in Medini like our Paradiso Nuova will benefit from this new measure.

Liang adds that around 60 per cent of their buyers are foreigners with Singaporeans forming the bulk.

There are also other incentives that you can apply if you are looking to live, work and play in Iskandar Malaysia. Called the ‘Medini Incentive Support Package’, foreign knowledge workers are exempted from RPGT when they dispose their land and properties in Medini until 2015 and 2020 respectively.

To qualify for the above scheme, you must have a Bachelor’s or Master’s degree with at least ten years of professional work experience in a qualifying activity or have a Ph. D. with at least five years of professional work experience in a qualifying activity.

Tip three: Take advantage of the ‘15 per cent tax rate scheme for knowledge workers in Iskandar Malaysia’

Kota Iskandar by night. You can apply for the incentives through Iskandar Regional Development Authority (IRDA) at its office in Danga Bay, Johor. Photo: Courtesy of IRDA.

If you intend to work long-term in Iskandar Malaysia, then take advantage of this additional incentive. First announced by Prime Minister Najib Razak during Budget 2010, this scheme is aimed at foreign knowledge workers and returning Malaysians to live, work and play in Iskandar Malaysia so as to spur the growth of this special economic zone. This scheme will allow you to enjoy a preferential flat rate of 15 per cent tax on your employment income.

In order to apply for this scheme, you must be working in the nine promoted sectors that IRDA has outlined. They include tourism, financial advisory & consulting, education, healthcare, creative industries, electrical & electronics, logistics, petrochemical & oleochemical and food & agro processing. You can apply via your employer.

Tip four: Go for landed terrace homes for capital gains

Landed homes in Horizon Hills in Nusajaya, Johor. Picture: Khalil Adis.

With Iskandar Malaysia poised to be the next top investment destination, landed terrace homes will be popular. If fact, they are the most in demand property among Malaysians. According to iProperty.com’s survey, 72 per cent of Malaysians prefer buying terrace homes. In addition, majority of them (35 per cent) have a budget of between RM350,000 to RM500,000.

The challenge from next year onwards is to find the sweet spot that are still within the budget of Malaysians since foreigners can only purchase properties above RM1 million. iProperty.com’s survey revealed that those with a budget above RM1 million is only 4 per cent. However, the survey is spread across Malaysia and does not reflect the ground reality in Iskandar Malaysia. In fact, terrace homes at Horizon Hills that was launched in 2008 at around RM288,000 are now commanding between RM860,000 to RM1.6 million in the resale market. The resale market in Horizon Hills is very active with most of the buyers comprising locals. There is good room for capital appreciation for landed terrace homes in Iskandar Malaysia but you must take long-term investment horizon.

Tip five: Condominiums are usually for rental returns

One Danga in Danga Bay. Photo: Courtesy of One Danga Sdn Bhd.

Malaysians perceive condominiums for rental returns as opposed to capital gains. Using Ujana as a benchmark, a three-bedroom there is currently transacting for RM4,000 in rent per month. With units there for a three-bedroom valued at around RM800,000, this translates to a rental return of 6 per cent. Majority of the tenants in Ujana are expatriates teaching at EduCity.

However, the condominium market in Iskandar Malaysia will be challenging. According to the NAPIC, the state of Johor is looking at a supply of 964,982 residential units (697,753 – existing stock, 113,583 – incoming supply, 153,582 – planned supply) in the second quarter of 2013. This means it will be challenging to rent out your units.

Tip six: Invest long-term

Take a long-term investment horizon to reap the full benefits of Iskandar Malaysia. Photo: Shutterstock.

Many Singaporeans have the perception that the way the property market works here is similar to Singapore’s. For example, many automatically assume they can easily rent out their properties after the project achieves its Certificate of Fitness (CF) upon completion. Well, this is not true as the catalytic industries that are currently being developed in Nusajaya are still in the early stages of development. They will need some time to take root to attract a substantial working population. Iskandar Malaysia’s population currently stands at around 1.4 million in a land area covering 2,217 sq km. This is not substantial enough to support the rental market. In comparison, Singapore’s entire population currently stands at around 5.2 million with a smaller land size of 714.3 sq km.

Another assumption is that flipping can be easily done. However, not all developers in Iskandar Malaysia allow a subsale transaction. Even if this can be done, there are other local considerations investors need to be aware of. They include whether the property type will appeal to locals, if it is within their budget and if banks can match the asking price. Having these assumptions based on Singapore’s property market are especially dangerous, especially for those looking to make a quick profit and do not have strong holding power.

Also, according to iProperty.com’s survey, Iskandar Malaysia is perceived by respondents in Malaysia as the next top investment destination, outside Selangor. This is followed by Georgetown, Penang and Nusajaya, Johor. This means, there is good potential for capital appreciation of your property, since this marks a significant shift in interest among Malaysians from Penang in its previous survey. In addition, by investing long-term, you do not have to pay the hefty RPGT rate that will kick in by 2014.

Tip seven: Look for bulk purchase deals

Bulk purchase deals for Meridin@Medini are still available for members subscribed in Khalil Adis’ Investors Club. Photo: Courtesy of Mah Sing Group.

Bulk purchase deals enable you to enjoy significant cost savings as opposed to buying as an individual. With an increase in the minimum sum from RM500,000 to RM1 million, every cost savings count.

Tip eight: Buy properties nearing completion

These terraced homes are completed. Recently, investors who followed me on my site visits were able to purchase this property at an affordable quantum price. Picture: Courtesy of Country View Berhad.

For those of you who are not familiar with Iskandar Malaysia and want some peace of mind, you may want to buy properties that are nearing completion. This will at least help alleviate concerns you may have on developers who do not have a strong track record but have the financial means to complete a project. However, do bear in mind that properties nearing completion will cost significantly higher that the initial launch price as the construction costs have been factored into it.

Tip nine: Invest in Johor Bahru Sentral

By end 2015, Sungei Segget that runs underneath Jalan Wong Ah Fook will be revealed once again. Photo: Courtesy of IRDA.

A rejuvenated and greener Johor Bahru looks set to rise by 2018 that will coincide with the opening of Tanjung Puteri MRT station that will connect to Singapore’s Thomson Line via Woodland North MRT station. The federal government has so far set aside RM1.8 billion for Johor Bahru’s rejuvenation that will include the opening of Sungei Segget (where Jalan Wong Ah Fook is located) in 2015, increase in the number of police posts and CCTVs, the opening of Angry Bird Theme Park in 2014 next to Menara Komtar as well as Hilton hotel and high-end residences (Suasana) during the same period. A new CBD zone after Menara Komtar is also in the pipeline, as outlined in IRDA’s new masterplan and zoning in the area that will include park connectors. The new Johor Bahru is modeled after tourism attractions in Venice and Amsterdam which the authorities hope will bring the river back to life once Sungei Segget’s rehabilitation project is completed.

Tip ten: Invest in Danga Bay

A new financial district and the largest direct investment by CapitaLand Malaysia in A2 Danga Island will rise by 2025 in Danga Bay. Photo: Khalil Adis.

DangaBay is undergoing massive transformation and will be a bustling metropolis come 2025 once the large-scale township development by CapitaLand Malaysia is ready. This joint-venture project by CapitaLand, Temasek Holdings and Iskandar Waterfron Sdn Bhd is CapitaLand largest investment by far in Malaysia valued at RM811 million. To be developed in phases over the next ten to twelve years, Danga Bay will soon be home to a premier waterfront residential community comprising high rise and landed together with marinas, shopping malls, F&B outlets and restaurants, serviced residences, offices and recreational facilities.

*the state levy has now been revised at 2 per cent of the property purchase price.

This article was first published by iProperty.com Malaysia with minor edits.

Medini – the new foreign investors’ darling

Paradiso Nuova by Zhouyuan Iskandar located in Medini in Nusajaya, Johor.

Free trade zone poised to be investors’ favourite destination after Budget 2014 is implemented

By Khalil Adis

With the new ruling on foreign property ownership announced last week by Malaysian Prime Minister Najib Razak, Medini has suddenly become the new foreign investors’ darling.

The pro-Malaysian budget that comes into effect from 1 January 2014 is a significant shift under the Najib administration that requires foreigners to purchase properties from RM1 million onwards.

Taking a cue from policies from opposition-held states such as those by the Democratic Action Party (DAP) in Penang, the increase in minimum sum is to ensure property prices remain affordable for Malaysians.

Previously, foreigners can only buy properties above RM500,000 except in Penang where the price caps are RM1 million and RM2 million for condominiums and landed properties respectively.

With Medini being the only place in Malaysia where there is no such price caps and quota for bumiputras, this has made this special economic zone an overnight goldmine.

Goldrush in Medini

Located in Nusajaya, Johor, Medini is a free trade zone that the federal government has lifted price restrictions and bumiputra quotas in order to spur growth of Iskandar Malaysia.

This Grade ‘A’ site is home to two government-to-government joint-venture projects sealed in 2010 in Singapore as part of the historic land swop deal – Afiniti Medini and Avira Wellness Centre both by Khazanah Nasional and Temasek Holdings.

Divided into three zones – lifestyle, business and living, Medini spans 908 hectares of prime land.

In the lifestyle zone, where LEGOLAND Malaysia is located at, popular condominium projects that have been well-received there include Afiniti Medini by Khazanah Nasional and Temasek Holdings, The Meridin by Mah Sing Group and Paradiso Nuova by Zhuoyuan Iskandar.

The lifestyle zone is also where the Rapid Transit System (RTS) network headquarter station will be located at.

By 2018, it will form a connection from Singapore’s Mass Rapid Transit (MRT) system via the Tuas West Extension.

Different schemes for different folks

Medini offers a glimmer of hope for foreign investors who want to live, work and play in Iskandar Malaysia.

If you are just looking to just buy a property, then Medini will offer you an exemption from the RM1 million price cap.

You can still get round the hefty Real Property Gains Tax (RPGT) by holding on to your property beyond the five year period.

This means taking a long-term investment horizon by not flipping your property during the construction period or in the resale market until the five year period is over.

You can calculate when the five year period will expire by looking at the date when your Sales & Purchase Agreement is signed.

However, do note that a 5 per cent tax will still apply for foreigners and companies after the sixth and subsequent years.

For foreign knowledge workers or returning Malaysians looking to live, work and play in Iskandar Malaysia, you can apply under the ’15 per cent tax rate scheme for knowledge workers in Iskandar Malaysia’.

First announced by Prime Minister Najib Razak in his Budget 2010, those applying under this scheme need to be working in the nine promoted sectors with plans to reside and live in Iskandar Malaysia.

The nine promoted sectors that Iskandar Regional Development Authority (IRDA) has outlined include tourism, financial advisory & consulting, education, healthcare, creative industries, electrical & electronics, logistics, petrochemical & oleochemical and food & agro processing.

You can apply via your employer so that you can enjoy a preferential flat rate of 15 per cent tax on your employment income.

Once approval is obtained, you are also eligible to apply and opt to purchase a duty free car for your own personal use.

Putrajaya has also made exemptions on Real Property Gain Tax (RPGT) for foreign knowledge workers or returning Malaysians.

Outlined by IRDA as the ‘Medini Incentive Support Package’, foreign knowledge workers are exempted from RPGT when they dispose their land and properties in Medini until 2015 and 2020 respectively.

To qualify for the above scheme, you must have a Bachelor’s or Master’s degree with at least ten years of professional work experience in a qualifying activity or has a Ph. D. with at least five years of professional work experience in a qualifying activity.

LEGOLAND Malaysia’s Water Park opens

Property sector seen to benefit from LEGOLAND Malaysia’s success

LEGOLAND Malaysia’s Water Theme Park will give a boost to the property sector and lead to job creation for Johoreans. Photo: Courtesy of LEGOLAND Malaysia.

By Khalil Adis

There is now more things to do across the causeway with the opening of what is billed as “the largest LEGOLAND Water Park in the world and the first in Asia” in Nusajaya, Johor.

Located just next to LEGOLAND Malaysia, the Water Park opened today and will feature more than 20 slides well as over 70 LEGO models.

Siegfried Boerst, general manager of LEGOLAND Malaysia Resort said that the addition will mean families will want to make more visits and stay longer.

“The Water Park will add a whole new dimension to the LEGOLAND Malaysia experience. In total, LEGOLAND Malaysia Resort will have more than 70 rides, slides, shows and attractions. This is a unique holiday destination for the entire family to enjoy. It will offer adventure, education and fun for action-packed day trips or longer breaks,” Boerst said in a statement.

Families will get to enjoy the Water Park’s signature rides such as the Build-A-Raft River and Joaker Soaker.

The former allows children to customise their own raft with soft LEGO bricks before floating down a lazy river.

Meanwhile the latter is a fun interactive platform in the wade pool where children can play with water cannons as a LEGO jester model ‘tells’ jokes while 350 gallons of water pour down upon them.

The Water Park will be served by a second gate allowing visitors to visit either the Water Park or in combination with LEGOLAND Malaysia.

LEGOLAND Water Park will also feature two restaurants, private cabanas for rent and a retail store on-site.

Tourism sector has met its target

LEGOLAND Water Park’s opening and its objective is in line with what the state of Johor has been trying to achieve since Iskandar Malaysia’s inception in 2006.

Mooted by former Prime Minister Abdullah Badawi, Johor has been looking to develop catalytic industries so as to enjoy the economic spillover from Singapore.

Tourism & leisure are one of the key industries identified by Iskandar Regional Development Authority (IRDA) to anchor visitors from Singapore to stay one or two days in Johor and create job opportunities for Johoreans.

Seven years later, Iskandar Malaysia appears to have reaped the fruits of its labour with the opening of the Water Park as well as LEGOLAND Hotel next year.

According to IRDA, of the RM118.93 billion committed investments as of June this year, 2.5 per cent comprises investments in the tourism sector.

So far, RM53.73 billion has been realised.

Since its opening in 15 September 2012, LEGOLAND Malaysia has already surpassed its target of one million visitors with 80 per cent of its visitors coming from the domestic market.

In addition, about 80 per cent of LEGOLAND Malaysia’s employees are from Johor.

The theme park boasts one of the best paying jobs in town –  starting from RM1,600 while managers and technicians can expect a salary from RM2,200 a month onwards,

Booming property sector around the theme park

LEGOLAND Malaysia’s success has also led to a property boom within its vicinity.

Medini, where LEGOLAND Malaysia is located at, has become a sought after location with a slew of property launches there.

Projects such as Afiniti Medini by Khazanah Nasional and Temasek Holdings were oversubscribed while Meridin by the Mah Sing Group and Paradiso Nuova by Zhouyuan Iskandar are proving to be popular among Singaporeans.

Iskandar Investment Berhad (IIB), which has selected plots of land in Iskandar Malaysia, has also sold all the land banks within the Medini area.

According to UOB Kay Hian Research, the second quarter of this year saw transaction volumes and values climbing especially within the Iskandar market.

For instance, transaction volume and values climbed by about 13.2 per cent and 30 per cent for Johor from the first to the second quarter.

This had led to an increase in levy hikes for foreigners from 2014 and a possible increase in Real Property Gains Tax (RPGT), expected to be announced during the 2014 Budget.