Local investors under threat from intensifying Iskandar housing glut

There are over 300,000 units in the pipeline.

The intensifying private residential supply glut in Iskandar and Johor could cause property investments to lose their value, the Monetary Authority of Singapore (MAS) warned.

MAS board member Lawrence Wong said in Parliament yesterday that there is a “real concern” about the looming oversupply in the property market across the Causeway.

“Based on data from Malaysia’s National Property Information Centre, there are 335,838 new private residential units in the pipeline. This is more than the total number of private homes in Singapore. The data does not include another 1,400 hectares of reclaimed land near the Tuas Second Link that will come on stream from 2020,” he said.

He also noted that not all Singaporean investors have fully grasped the risks of purchasing foreign properties.

“There are many risks involved in overseas property purchases, especially in markets where there is uncertainty of supply or no effective regulation of supply. If there is an over-supply of properties, investments can lose their value, and it will also be difficult to find tenants for an investment property,” he said.