KUALA LUMPUR: Iskandar Malaysia's ongoing infrastructure developments have sparked renewed demand, especially for industrial properties and land for data centre (DC) developments, said CIMB Securities Research.
The research house said that developers with strategic landbanks in Iskandar Puteri have enjoyed brisk sales for their recent launches as connectivity improves.
"We came away from the visits feeling more assured that the 'feel-good' factor generated from Johor's transformative landscape would eventually trickle down to Iskandar Puteri—the heartbeat of Iskandar Malaysia within the southern development corridor of Johor.
"This, in turn, has helped prod a nascent revival in demand for properties in Iskandar Puteri and its surrounding areas," it said in a note.
CIM Securities Research said the firm noticed that there was renewed interest for properties in Johor, which first centred on high-rise developments in JB city near the proposed Johor-Singapore Rapid Transit System Link (RTS Link), but has since spread towards other areas such as Iskandar Puteri.
It also believes that the pace of placemaking activities is picking up in Iskandar Malaysia with the potential introduction of a new
ferry service to and from Tuas in Singapore would be a big boost to the region.
Meanwhile, CIMB Securities Research said a well-connected region, industrial and data centre drive, as well as the ripple effect from the Special Financial Zone (SFZ), will also help to raise demand for properties in Iskandar Puteri.
If well executed, the firm is of the view that the launch of the Forest City SFZ, alongside its various incentives, would have a ripple effect on the entire IM region.
"Concurrently, the state government has also requested for the SFZ to be embedded into the broader Johor-Singapore Special Economic Zone (SEZ).
"Stock-wise, we prefer Sunway Bhd and UEM Sunrise Bhd for exposure to Iskandar Puteri's rising prospects.
"As two of the largest landowners in IM, we firmly believe that both Sunway and UEM Sunrise provide good leverage to Iskandar Puteri's rising prospects, which should receive an added kick if the proposed SEZ materialises as planned," it added.