Ringgit down, so buy, buy and buy Iskandar? 🙂

Please allow me to smile a little. I read a report saying that Iskandar properties would be attractive to Singaporeans because the Ringgit is showing a weakening sign versus SGD. To be honest, I am not sure how much the effect would be. To me, Singaporean investors are considered quite a savvy lot. They would buy because its attractive and has good potential returns, never because of the currency. Also, majority of the purchasers thus far, I feel would be Johoreans or Malaysians working in Singapore instead of Singaporeans themselves. I read somewhere before which said that half of all buyers are those working in Singapore. I think this is a fair assessment. Reason is not many Johoereans working in Johor and staying in landed homes would be too excited about buying high-rise even if the view is overlooking Singapore or the sea or water or any awesome views.
However, one thing which I believe is true is this. For people who seriously think a garden and a nice porch which can fit 2-3 cars is a very good addition, then Johor is the best place for that to happen. Even a bigger HDB flat in a more popular area would be higher priced than a landed or gated and guarded property in Johor today. So, that itself would be a very attractive proposition. According to the Johor Real Estate and Housing Developers Association branch chairman Hoe Mee Ling, “Johor Baru’s close proximity to Singapore is an added advantage (for Iskandar Malaysia) to attract Singaporean buyers because they can have the best of both worlds.” Of course, the currency would then be an added incentive. Now, it sounds much more objective instead of the original article in a newspaper where the first sentence is already saying that currency is the most important factor.
The report then touched on a few people who said that Bank Negara should come up with measures to ensure the Ringgit does not fluctuate too much as in the long run this will cause much uncertainty not just to the market but also to businesses as it would be hard for them to plan. I am not sure if they are serious because one of the measures to keep the Ringgit stronger is to increase the interest rates which I think would be a bad thing for the current slow market. Also, the current fluctuations has very little to do with the economic fundamentals and even the oil prices in the world today has little to do with the demand. It is more on the rivalry between two oil producers, one wanting the other to stop and the other pressuring the other to STOP or reduce their production so that prices can recover. These days, the world is just like that. You win, if you have a deeper pocket. Hey, that’s just like the society. Happy reading.
written on 3 Dec 2014
Next suggested article: Singaporean PM, SME, Iskandar


  1. Jeffrey avatar

    May I know what HDB means ? Thanks

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