Check out why Singapore property buyers used to snub Iskandar

3 very essential reasons.

According to CIMB, there are essentially three reasons why property buyers from Singapore have shunned Iskandar in the past. These include: 1) concerns over safety; 2) the lack of infrastructure; and 3) concerns over execution.

The lack of visible developments in the area, coupled with the property up-cycle seen in Singapore in 2006-2011, has convinced Singapore property investors to remain largely focused on the island – until now.

The entrance of Khazanah (via UEM Land) in 2005 marked a tangible commitment from the Malaysian government to make Iskandar work.

Here's more from CIMB:

We believe the buy-in from the Malaysian government boosted the confidence of Singapore property investors on Iskandar. The much improved bilateral ties between the Singapore and Malaysian governments also helped to a certain extent.

What transpired in the last seven years was a visible improvement in infrastructure development and execution. Local developers have stepped up efforts to build houses.

The construction of LegoLand, Puteri Harbour Theme Park and numerous education institutions was also completed recently. This, in turn, should spur more housing developments as plans to build LRT, MRT, tram, monorail and ferry transports are set in motion.

We believe the proposal to link the Singapore MRT system with Iskandar by 2018 will be the key potential kicker for more Singaporean demand.

While there are no official statistics on the trend of Singapore buyers in Iskandar, our ground checks suggest the proportion has been rising. Horizon Hills, an upmarket landed housing development, has c.45% of its take-up coming from foreigners, of which 80% are Singaporeans.