1Medini Residences

1Medini Residences and Medini Signature make up the residential space, while 1Medini Hub’s 16 shop-office units of retail and commercial accompaniments complete the integrated urban living experience in a single locality. The 1Medini integrated mixed-development project is WCT’s flagship participation in Medini City. Medini City is the designated Central Business District of Iskandar Puteri (formerly known as Nusajaya) which is internationally recognised as Southeast Asia’s largest metropolis in the making.

1Medini Residences comprises a total of 1,332 serviced apartments that are housed in 2 tower-blocks and there are also 18 unique units of garden villas which are residential homes that are detached from the apartment blocks and are built atop the roof of the 3-storey commercial office/shop units. Medini Residences offers a good range of apartment sizes with built-up ranging from 720 sq ft to 1,704 sq ft with 1 to 4 bedrooms configuration.

The project was launched at RM500 psf, with the smallest studio units priced at a very affordable price point of RM360,000. However, since its completion in 2015, due largely to the oversupply of residential properties in the vicinity and lacklustre development in the other areas of Iskandar Puteri, the despondent sentiment has driven prices to new lows. Currently, it is an absolute buyer’s market in the Iskandar Puteri area. However, the recent confirmation by the Malaysian government to revive the stalled RTS project has once again kindled interest in the area’s property market.

1Medini Residences is centrally positioned, easily accessible and smoothly connected to Johor Bahru city centre, other signature developments around Iskandar Puteri, the Senai International airport and also the 2nd Malaysia-Singapore causeway link. Accessibility to Johor Bahru city centre via the Coastal Highway will take under 20 minutes. Senai International Airport is just 25 minutes away and the Second-link connecting to Singapore is about a 15-minutes drive away.

With the revival of the RTS project, in the next couple of years, the Johor-Singapore connectivity will be seamlessly enhanced and travel-time between these cities will be markedly reduced.

1Medini Residences is located in one of the fastest developing zones of Medini City. It is surrounded by flagship developments such as EduCity, an international education hub; Kota Iskandar, the new Johor State Administrative Capital; Puteri Harbour, a waterfront development across the strait from Singapore; Horizon Hills Golf Club, Southern Industrial & Logistics Clusters (SiLC) an industrial park host to advanced technologies, biotechnology and integrated logistics businesses and LEGOLAND® Malaysia theme park, the first LEGOLAND in Asia.

Medini City enjoys a special status whereby there are no restrictions on foreign ownership. There is no minimum price threshold for foreign property buyers. Foreign property purchases are also exempted from real property gains tax until Dec 31, 2025. Hence, 1Medini Residences, one of the lowest-priced completed residential projects will enjoy the unrestricted potential to attract foreign investors.

The Iskandar Malaysia integrated mixed-development is an ambitious 30-year greenfield development project. Unlike other plug-in new developments in well-established areas, greenfield developments require greater efforts to piece the various parts of the whole together and also a much longer nurturing time to reach maturity.

Moving forward from 2020, the revival of the Malaysia-Singapore RTS connectivity project is critical to boosting interest in the area. Concerted efforts by the master planner to invigorate the other economic flagship sectors within Iskandar Malaysia may drive population growth, potentially creating higher demand for housing in the area.

1Medini Residences Location

Medini City
1Medini Residences is located in Medini City (also known as Medini Iskandar) in the northern zone of Iskandar Puteri (formerly known as Nusajaya) in the southern state of Johor. This southernmost tip of the Peninsula enjoys a special stature in its proximity to Singapore, one of the world’s most vibrant and expensive countries.

The new Medini suburb, anchored in the heart of Iskandar Puteri is a new integrated urban township development designed to house a population of 450,000 by 2030.

Medini City is designated the Central Business District (CBD) of the ambitious Iskandar Malaysia development and is the fastest developing zone in the Iskandar Puteri district. Sprawled over 2,230 acres, Medini City is expected to have a gross development value (GDV) of US$20 billion (RM81.6 billion) over the next 15 to 20 years and is slated for completion in 2045.

Medini City is planned to be an all-encompassing township with unique offerings in trade and logistics, tourism, healthcare and education. Medini City is also supported by complementing development projects in the surrounding areas of Iskandar Puteri such as the Kota Iskandar government administrative centre, Puteri Harbour a resort-styled township, EduCity a world-renowned integrated education hub.

Medini City was launched in 2007 and is largely still under construction, hence the area is still sparsely populated. The development master plan of Medini City had envisaged the creation of a 188 million sq. ft. built-up area of a mixed-use property in the area.

Iskandar Puteri
Iskandar Puteri (formerly known as Nusajaya) is the second-largest city in Johor after Johor Bahru (JB) and is the largest urban integrated development in Southeast Asia. It is thematically divided into six development zones which are neatly organised and is planned to seamlessly integrate the residential, commercial and industrial aspects for sustainable and self-contained communal living lifestyle.

Medini City is an integral development within the larger 24,000-acre (approximately one-seventh the size of Singapore) development of Iskandar Puteri, the Iskandar Malaysia Flagship Zone B. The internationally recognised Iskandar Puteri development comprises several self-sustaining and economic growth components such as tourism and leisure, health and wellness, government, education, business and industries to not only cater to the local market but also designed to spur organic growth in the region.

The master plan for the self-sustaining city is recognised internationally, and was awarded the 2017 Green Champion Award in two categories: “Emerging Green City” and “Smart and Green Infrastructure: Greenfield Development” at the International Greenery, Recreation, Infrastructure, Parks (IGRIP) Conference and World Urban Parks Asia-Pacific Congress.

In the early 2010s, the completion of the Malaysia-Singapore Second Link was the catalyst that made Iskandar Puteri a much sought-after prime property location. From Legoland in Iskandar Puteri, the Second Crossing bridge is approximately 14km away, and the 44km E2 Second Link Expressway linking the North-South Expressway (NSE), Senai Airport, Johor Bahru and Taman Perling is constructed around Iskandar Puteri, providing convenient access to the entire region.

The proposed Kuala Lumpur–Singapore high-speed rail’s Iskandar Puteri Station was the catalyst fuelling further interest in the location. Eager investors were all eyes on the progress of the master-planned development. However, in recent years as the project took to a critical juncture in developing the supporting commercial and industrial components, the uncertainty of the changes in government policies such as foreign property ownership issues and delays in the implementation of important infrastructure projects has waned interest in the development. Reviews had critically called the bottle half empty rather than half full, further dampening sentiment.

Iskandar Malaysia
Above and beyond Iskandar Puteri is the large-scale ambitious southern corridor development of Iskandar Malaysia (formerly known as Iskandar Development Region). Launched in 2006 under the 9th Malaysia Plan, the 547,669 acres designated as a special economic area, is to be developed over 40 years into an integrated self-contained and sustainable world-class metropolis.

In a published review of the Iskandar Malaysia development progress, it was concluded that up until 2018, Iskandar Puteri had the most numbers of completed projects as planned in the Iskandar Malaysia master plan. Some of the completed projects include the Educity@Iskandar, Bio-Xcel Malaysia, Puteri Harbour, Legoland Malaysia, Pinewood Iskandar Malaysia Studio, University of Reading Malaysia and residential development projects. Source: NST https://www.nst.com.my/news/nation/2018/04/357376/iskandar-set-become-metropolis

Connectivity

The connectivity infrastructure of Iskandar Malaysia has been carefully designed and created to ensure seamless accessibility and deliverability of all the planned industries and promoted signature projects. A big advantage of being part of a greenfield development project is that each development component is well-thought-of, supported by a common comprehensive master plan and state-of-the-art infrastructures.

The basic infrastructural works of Iskandar Malaysia cost the Malaysian Government RM10 billion to build over a period of 4 years. Within Medini City itself, RM1.83 billion has been spent to complete a 60-kilometres network of roads, 58 covered bus stops, over a thousand custom lamp posts, STP sewage treatment plant for 500 thousand PE and other essential utilities.

Medini City is well-connected to international airports (Senai Airport and Changi Airport), seaports (Port of Tanjung Pelepas, Port of Pasir Gudang, Port of Tanjung Langsat, Jurong Port and Port of Singapore Authority) as well as rail and road networks. Integrated gateways are carefully planned out to provide access into Medini City and Iskandar Puteri to ensure sustainable economic and social development.

Malaysia-Singapore connection

The Johor–Singapore Causeway
Malaysia-Singapore Second Link

Highway connectivity

North-South Highway
Coastal Highway Southern Link
Second Link Expressway
Pasir Gudang Highway

Airports

25 mins to Senai International Airport
35 mins to Seletar Airport
45 mins to Changi Airport

Seaports

15 mins to Port of Tanjung Pelepas
20 mins to Jurong (Singapore) Port
45 mins to Johor Port

Rail connectivity

Iskandar Malaysia Bus Rapid Transit (BRT) Johor
Johor-Singapore Rapid Transit System (RTS)

Malaysia-Singapore connection

At present, there are two land-ports of entry in Johor that directly connect Malaysia and Singapore. The Johor–Singapore Causeway is a 1,056-metre causeway that links Johor Bahru to the Woodlands district in Singapore. It serves as a road and KTM rail link. The Malaysia-Singapore Second Link is a 1.9-kilometre bridge that connects Tanjung Kupang in Gelang Patah located in southwest Johor to Tuas in the northwest of Singapore. 1Medini Residences is strategically located 6.5 km from the CIQ Sultan Abu Bakar Tanjung Kupang (CIQ Second Link).

Road Access

Medini City is extensively connected to a well-planned network of highways. The Iskandar Coastal Highway, made up of the Johor Bahru West Coast Parkway and the New Coastal Highway, with well-positioned interchanges links Medini City to the other Iskandar Malaysia development areas such as Johor Bahru, Danga Bay, Taman Perling, Kota Iskandar and Puteri Harbour. The closest interchange access is at the Bulatan Medini Roundabout which is less than 1.5km from 1Medini Residences.

Enhancing Medini City’s connectedness is the newly completed Coastal Highway Southern Link (CHSL), an extension of the Iskandar Coastal Highway. The 5.2 km highway provides a direct connection between Medini City and the Second Link Expressway that connects straight into Singapore. The connecting highway will reduce the travelling distance between the Second-Link and Medini by 10km. The travel time from Medini City to the Sultan Abu Bakar Customs Immigration and Quarantine checkpoint will be a mere five minutes via this new linkage.

The Second-Link Expressway also links up with 2 major highways, the north-bound North-South Expressway and west-bound Port of Tanjung Pelepas Highway. The Second-Link Expressway which links Medini City to Senai Airport, Johor Bahru and Taman Perling and several other flagship zones within Iskandar Puteri.

Iskandar Malaysia Bus Rapid Transit (BRT) Johor
The upcoming RM2.56 billion Iskandar Malaysia Bus Rapid Transit (IMBRT) network which is expected to be completed in 2022 will cover 90% of Iskandar Malaysia’s population. The extensive network is divided into 3 trunks, 26 direct and 42 feeder routes. The high-capacity buses with dedicated bus lanes will connect Johor Bahru to industries and residential areas in Tebrau, universities and small and medium-sized enterprises in Skudai and the signature zones of Iskandar Puteri.

There will be over 750 buses servicing the IMBRT routes with planned 39 stations along the 51km-long trunk lines and it will include stops at high traffic areas of Larkin, Bukit Chagar near the Causeway and Medini near the Tuas Second Link.

Air travel

Senai International Airport in Johor Bahru has a capacity to handle up to four million passengers annually and is directly connected to major ASEAN cities such as Bangkok, Jakarta, Seoul and Guangzhou. It is also an important airport that connects local flights to major Kuala Lumpur, Penang and Kota Kinabalu. The airport management is in the midst of negotiating a direct service to Shanghai, China’s financial hub.

Rail connectivity

The upcoming Johor-Singapore Rapid Transit System (RTS) is expected to relieve the congested traffic flow of the two existing Johor-Singapore linkages namely the Causeway bridge and Tuas Second-link bridge.

It is estimated that more than 300,000 Malaysians travel across the Johor-Singapore Causeway and about 145,000 vehicles pass through Johor Bahru’s Customs, Immigration and Quarantine (CIQ) complex daily. It is a great hassle to commute daily whereby it takes about 1 to 2 hours to cross the 1km-long Causeway bridge on workdays, while on weekends and holidays the journey could take much longer. In order to reduce travel time, some would cross the bridge on foot. There is also an equal number of Malaysians working in Singapore who are paying exorbitant rent to avoid this arduous daily task.

Currently, the only alternative to road travel across the bridges is the Keretapi Tanah Melayu Berhad’s (KTMB) Tebrau Shuttle between JB Sentral and Woodlands. Hence, the introduction of the highly efficient rail services is expected to greatly improve the daily commute of Malaysians and Singaporeans.

Johor-Singapore Rapid Transit System (RTS)
The RTS is a cross-border light rapid transit system that is expected to transport up to 10,000 passengers per hour per direction across the Straits of Singapore. The RTS will have a co-location customs, immigration and quarantine (CIQ) facilities so that passengers undergo CIQ clearance only once at their point of departure.

On the Singapore side, the 4.2km RTS line will cover Singapore’s north-south regions. Phase 1 is located in Woodlands, Singapore’s northernmost point closest to Johor. There are plans to integrate the RTS with Singapore MRT’s Thomson Line, a 30km underground MRT system. Construction work is expected to begin in 2021 and if all go as planned, the rail service will be operational in 2026.

Convenience

Medini City may be a relatively new township but it is complete with a wide range of amenities. Unlike residential developments in more established and mature townships where the needs of residents are provided for by older business establishments, within and surrounding Medini City all amenities are modern and stylish.

The 16 units of commercial and retail shops within the 1Medini development, of which 1Medini Residences is a part of, provides the convenience of eateries and daily essential shops. The amenities within Medini City are still being pieced together as new commercial and retail businesses are set up to cater for the steadily growing population.

Within 10km or less than a 15-minutes short drive, 1Medini Residences residents can easily access hypermarkets for daily essentials, quality education and healthcare services.

At closeby Bukit Indah, a more mature and established area, there are more choices of eateries, entertainment outlets, offices, workshops, as well as an AEON and a Tesco Hypermarket. A 5-minutes drive further south is the high-end township of Puteri Harbour where residents with a penchant for upmarket products and services can shop or have afternoon tea at alfresco cafes with a view of the waterfront with parked yachts at the marina.

Quality healthcare is one of the signature industries of Iskandar Puteri earmarked to draw the retiring population in Singapore and also promoted to draw in international health tourists. 1Medini Residences residents can easily access high-quality private healthcare services at Gleneagles Hospital Medini that is within walking distance from the service apartment.

Down the road, within 2km proximity, the signature Educity is an agglomeration of 10 world-renowned schools providing good quality education.

Healthcare and wellness

• Afiat Healthpark
• Columbia Asia Hospital – 12km
• Gleneagles Medini Hospital – less than 1km

The Afiat Healthpark 67-acres health and wellness centre is a holistic one-stop healthcare facility that offers modern, traditional and complementary medicine and supporting wellness services. Within the health-park resides The 2019 BrandLaureate World BestBrands Award in Healthcare-Private Hospital winner Columbia Asia Hospital, an impressive modern medical facility staffed with highly skilled doctors and well-trained nurses.

Adjacent to Columbia Asia Hospital is the DB Medical & Wellness Centre, a private healthcare clinical hub built with medical suites, support medical services and care centre. Alongside these healthcare facilities is the 128-rooms 18-storey DB Vintage Hotel to support the healthcare tourism industry earmarked to meet the rising local and regional demand for premier and all-inclusive healthcare
Services.

Closer to 1Medini Residences is the 15-acres Gleneagles Medini Hospital, a leading international healthcare provider. The hospital is a fully integrated healthcare facility with 300 beds, 162 suite medical office block, nursing home, a rehabilitation centre and also a comprehensive range of specialities. The other health and wellness available in the vicinity include the integrated urban wellness development Afiniti Medini and KL Gynaecologist @ Sunway Medical Centre.

Education

• EduCity Iskandar Malaysia (EduCity) 2km
• Mount Kelly Malaysia 1.3km
• Sunway International School 600m
• Academy of eSports Iskandar Puteri (AOES) 800m
• Sekolah Kebangsaan Medini 700m
• Stellar International School 2km
• Raffles American School 2.4km

EduCity Iskandar Malaysia (EduCity) is a unique multi-varsity education hub host to 10 world-renowned universities and institutes of higher education that is less than 2km from 1Medini Residences. EduCity is the first of its kind in Asia and comprises universities and institutes of higher education, academia-industry action and R&D centres, student accommodations, as well as recreational and sports facilities.

The list of schools is as follows:

• Newcastle University Medicine Malaysia (NUMed)
• Marlborough College Malaysia (MCM)
• University of Southampton Malaysia Campus (USMC)
• University of Reading Malaysia (UoRM)
• Netherlands Maritime Institute of Technology (NMIT)
• Raffles University Iskandar (RUI)
• Multimedia University (MMU)
• Management Development Institute of Singapore (MDIS)
• Johan Cruyff Institute Malaysia (JCIM)
• Primary and Secondary Trust Schools

As for kindergarten, elementary and secondary schooling, residents have a choice of public and private schools in the vicinity. Malaysia’s first eSports school, The Academy of eSports Iskandar Puteri is solely dedicated to training and nurturing budding eSports players and is less than 1km from 1Medini Residences.

Kota Iskandar government administrative centre

The administrative centre for the Johor state government measures 320 acres and Phase 1 was completed and occupied by an estimated 2,200 Johor state government civil servants. Phase 2 involves the building of state civil servant housing while Phase 3 covers the federal administrative buildings. The total GDV for Phase 2 and 3 is RM1.1bn.

Industrial Parks

• Nusajaya Tech Park

The 210-hectare Nusajaya Tech Park, when fully completed, is expected to support a community of over 20,000 people from some 200 enterprises in key growth industries such as electronics, food processing, pharmaceutical and medical devices.

• Southern Industrial & Logistics Clusters (SiLC)

The Southern Industrial & Logistics Clusters (SiLC) 1,300-acre industrial park is focused on developing the value chains of integrated industrial clusters in three major areas: advanced technologies, biotechnology and integrated logistics.

Recreation and Leisure

• LEGOLAND® Malaysia resort

Iskandar Puteri is home to one of the region’s most popular tourism and leisure attractions, LEGOLAND® Malaysia Resort, comprising the LEGOLAND® Theme Park, LEGOLAND® Water Park and LEGOLAND® Hotel. There are also multiple recreation parks all around Medini City.

Main Parks and Green Linkages
A1. Adventure Park
A2. Botanical Park
A3. Central Piazza
A4. Edible Park
A5. Heritage Foret
A6. Children Park
A7. Park Connectors
A8. Pedestrian Boulevard
A9. Public Arts
B1. Mahkota Park (BCB)
B2. Emerald Lake (Sunway
B3. Lakeside (UMLandUMLand)
B4. The M Park (Macrolink)
B5. Pinewood Lake

1Medini Residences Floor plan/Storey plan

1Medini Residences comprises 2 blocks of 1,332 units of serviced apartments with built-ups ranging between 720 to 1,704 sq ft. Each of the 2 tower-blocks of 1Medini Residences is neatly divided into east and west-wing and the 14 units of apartments on each floor is equally divided between these 2 wings. The unique structural design of the residential towers allows more corner units than intermediate units. All of the standard units which measure larger than 1,000 sq. ft. enjoy the corner view while the smaller studio and 2-bedroom standard layouts occupy the intermediate slots.

1Medini Residences offers 5 apartment sizes in 9 layouts which can be grouped into 3 categories – the small studio-type units with built-up of 720 sq. ft., the standard small and mid-size units measuring 873 to 1,314 sq. ft. and the large duplexes with built-up areas between 1,510 to 1,704 sq. ft.

The smallest of the 5 layouts is Type-D, a 1bedroom and 1 bathroom studio-type which measures 720 sq. ft. Each floor has a limited 2 units and is only available as intermediate lots. The next size up is the slightly larger 873 sq. ft. standard 2 bedrooms and 1 bathroom Type-C with 4 intermediate units per floor. The larger standard apartments are corner units design Type-A and Type-B which measure 1,019 sq. ft. and 1,314 sq.ft.respectively. Type-B is built with 2 bedrooms and 2 bathrooms and the larger Type-A standard units have an additional bedroom and are more spacious in the common living areas. Type A, B and C come with their respective variants which are similar in built-up but differ very slightly in the sizes of bedrooms, bathrooms and kitchens.

Buyers with larger households demanding more space and rooms can consider the duplex units. Type-E with built-up areas of 1,510 sq. ft. built with 3 bedrooms and 3 bathrooms and spacious living areas or the 1,704 sq. ft. Type-E1, the ultimate in size of all the 1Medini Residences which have 4 bedrooms and 3 bathrooms.

1Medini Residences Facilities and Amenities

1Medini Residences comes with the basic in-house facilities.

Security

• 24-hour security via trained guards
• Security access cards
• CCTV surveillance.

Sports

• Swimming Pool
• Tennis Court
• Gymnasium
• Jogging track
• Sauna

Activity Area

• BBQ Pit

Children’s Area

• Children Playground
• Wading Pool

Services

• Minimart

1Medini Residences Property Analysis

Competitor Analysis

At present, most of the completed residential developments are concentrated in Zone A of the Medini City projects. Zone A, known as Medini North includes LEGOLAND® Malaysia Resort, Mall of Medini, Gleneagles Medini Hospital, and several residential developments. Within the 1.5 km radius of 1Medini Residences, there are several completed serviced-apartment projects built on the same mix-use integrated development concept. The all-in-one lifestyle hub concept combines living-working-convenience in a single locality.

All the projects within the area are built on 99 years leasehold commercial land with a special arrangement for a 30 years extension. As the Medini area is designated as a special economic zone, there are no restrictions on foreign ownership. There is no minimum price threshold for foreign property buyers, and foreign property purchases are exempted from real property gains tax until Dec 31, 2025.

All the projects are relatively high in density with most of the residential blocks towering above 30-storeys high with the exception of Afiniti Residences Medini which is part of a wellness-related development.

All the residential projects were designed to offer multiple layouts and sizes from studios for single occupants to 4-bedroom units to accommodate large families.

1Medini Residences was the first residential project that was launched in Medini City in 2012 and the cheapest in psf launch price of RM500 psf. Subsequent residential projects were launched at above RM600 psf.

In a short span of 2 years, between 2012 and 2014, from the first project launch to 2016, the launch prices more than doubled from RM500 psf to Rm1,100 psf driven by the optimistic population boom projection and also the highly anticipated success of Iskandar Malaysia.

Since then, as the projects were completed and supply much-exceeded demand, the prices have softened. In the recent 5 years, the overflowing stockpile and the delays in the RTS and HSR projects have affected prices adversely. Based on transacted sales, prices in all segments have been trending downwards and are currently at new lows.

According to a Datamine review of residential property in Medini, prices declined about 13.4% in the last 1 year, with Afiniti and Iskandar Residence declining the most at around 20 per cent. As of August 2020, the median price of the serviced apartment units in the area was around RM650,000 and RM773 psf.

However, with the revival of the RTS project and the limited supply coming onstream, the price slide should taper off and the demand should grow with improved commercial and industrial activities at Medini. It was reported in 2015 that the master-planner of Medini halted the sale of land to address the oversupply in residential property in Medini. Hence, until a future land sale takes place, prospective buyers will be looking at buying from the completed stockpile.

Many reviewers opined that the revival of the RTS will have very minimal impact on the demand and pricing of residential properties in Medini City because of its distance rendering it less convenient to access the RTS. Many also took the view that in comparison to Johor Bahru where the RTS station will be built, Medini will be the second choice for property buyers. However, the lower psf prices in Medini City and the quieter surrounding are some of Medini City’s vantage points over older Johor Bahru.

Target Market

The target market for residential properties in Medini City is foreigners. Malaysia has a strict regulation restricting foreign property ownership but controlling the minimum price threshold of properties that foreigners can buy and the limits vary from state to state. In order to attract more property investors to Medini City, it has been granted a special status whereby there are no restrictions on foreign ownership. There is no minimum price threshold for foreign property buyers. Foreign property purchases are also exempted from real property gains tax until Dec 31, 2025.

The first category would be Southeast-Asian regional investors looking to invest in properties located not too far from their home country. The affordable and low price points for similar or better living standards is a major draw factor for properties in Medini City and the surrounding Iskandar flagship townships. Since the launch of Medini City, the vast majority of buyers in this category include investors from Singapore, China, South Korea and Japan. These expatriates are here to capitalize on the lower cost of living, clean environment, proximity to Singapore and quality education choices through international schools for their children.

According to the Chinese Hurun Report, one in three wealthy Chinese own properties overseas. Both Malaysia and Singapore are among the top 10 countries where they own properties. The Johor residential property affordable prices and projected high rental yields are the main draw factors for these investors.

The second group of foreign buyers are those who are not able to afford the exorbitant home prices in their home cities. In charting global home prices in 2019, CBRE and globalpropertyguide ranked Singapore as the second most expensive residential property market worldwide after Hongkong. In the top 10 list, the major cities in China, such as Shanghai, Shenzhen and Beijing are also ranked higher than London and Paris. The exorbitant prices of homes in these cities have priced-out most locals from owning a home.

In Singapore, the average price of a condominium is at least 7 times higher than the average price in Medini City. As an example, HDB properties which are the cheapest form of housing in Singapore cost twice as much in comparison to the average price of apartments in Medini City.

Furthermore, the other important factor that makes Medini City the desired location for regional home buyers is the opportunity of providing their children with international education at a much lower cost vis-à-vis studying in America or the United Kingdom. The strategic Educity development is significant in attracting families with schooling age children to Iskandar Puteri. The quality private schools and Institutions of Higher Learning around Medini City is expected to school at least 16,000 students annually.

The lower cost of living in Johor in comparison to Singapore is also a major draw for Singaporean retirees looking to stretch their retirement fund by settling down in the modern new area that is close to home with relatively cheaper housing and healthcare services. It is estimated that by the year 2030 there will be 900,000 Singaporeans aged 65 and above. Iskandar Puteri is well-equipped with quality healthcare facilities, cheaper cost of living and a much more laid back lifestyle which is the ideal residential option for retirement.

Besides, Iskandar Malaysia is one of the highly promoted locations under Malaysia My Second Home (MM2H) Programme which allows foreigners who fulfil certain income and wealth criteria to stay in Malaysia for as long as possible on a 10-year multiple-entry social visit pass.

However, in recent days there are great concerns amongst foreign investors over Malaysia’s unclear policies on foreign property ownership in general and the MM2H programme.

1Medini Residences’ Developer: WCT Land Sdn

WCT Land Sdn Bhd established in1996, is the property arm of WCT Holdings Berhad, a listed company with a market capitalisation of around RM2billion. WCT is a well-known name in construction, property development and engineering. WCT as a group has an impressive track record from the construction of F1 tracks to highways and development of integrated townships to resort-style luxury homes.

WCT has a proven 17-year track record in property development and has delivered more than 15,000 units of residential and commercial properties amounting to a gross development value (GDV) of more than RM 4 billion. The company’s property development portfolio includes townships, luxury homes, high-rise residences, industrial properties, offices, mixed commercial developments, concessions, hotels and shopping malls. WCT currently has a land bank of approximately 820 acres in Malaysia.

The company has a strong footprint in property development projects in Klang, Sabah and Johor. Some of its notable completed projects are d’Banyan Residency @ Sutera, a resort lifestyle in Sabah; d’Laman Greenville luxury homes in Bukit Tinggi Klang and Sapphire Paradigm residential project adjacent to Paradigm Mall in Petaling Jaya.

Currently, WCT has 2 on-going residential development projects with NDV of RM240 million. The Paradigm Residences in Johor Bahru and Aronia Apartments in Bandar Parklands Klang are scheduled for completion over the next 2 years. The group’s current focus is in the construction works of infrastructure, highways and commercial properties. As of June 2020, the company’s order book adds up to an impressive RM6 billion in work orders.

The Group also owns and manages five shopping malls/centres, namely Bukit Tinggi Shopping Centre in Klang, the airport malls – gateway@klia2 and SkyPark Terminal in Selangor, Paradigm Mall in Petaling Jaya and Paradigm Mall in Johor Bahru. In hospitality properties, the Group owns Première Hotel in Klang and New World Petaling Jaya Hotel in Petaling Jaya.

Summary

The Development Timeline
Unlike a single-block residential development project in an established location, 1Medini Residences is part and parcel of a much larger multi-component greenfield development scheme. The entire Iskandar Puteri district of which the Medini City zone is part of was developed from scratch.

The crucial point to note is that greenfield development projects take time to build, to nurture and mature. The complexity of such self-containing and sustainable developments must also be timely and seamlessly stitched together for optimum success of each project component. The success of one element in the integral development is to a certain extent dependent on the progress of another linked-component.

To assess the potential of 1Medini Residences and the other residential properties in the vicinity of Medini City, an overview understanding of both the Iskandar Puteri district and also the entire regional development of Iskandar Malaysia must be pieced together. Medini is the centrepiece development zone of Iskandar and each development component, especially those located in the surrounding Iskandar Puteri district, must grow in tandem.

A notable strength of Iskandar Malaysia is that there is an overseeing coordinating master planner with clear and structured development plans. Hence, the future development of all sectors is expected to be planned, organised and harmonised to fit the bigger picture rather than spontaneous haphazard development. Reviews of the development project consider the ambitious project to have completed the first two growth phases, infrastructure and housing. Going forward, it is crucial in escalating the development in the commercial and industrial sectors to drive growth and ensure the success of the entire development.

According to published Iskandar Regional Development Authority’s (IRDA) statistics, since the inception of Iskandar Malaysia in 2006 up until 2019, the regional corridor development project has attracted a total cumulative investment amount of RM302 billion. However, almost half of this investment amount has been focused on the property development projects, causing an investment imbalance gap in the supporting industrial sectors.

The investments committed to the other promoted sectors are much less than half; manufacturing (23.8%), logistics (2.8%), tourism (2.6%), healthcare (1.5%), education (1.1%), financial and business services (0.7%) and creative industries (0.5%).

Lacking in commercial activities, the projected population boom did not take place following the development planned time frame, hence the demand for housing numbers are mismatched with the supply. The projected demand for 1.2 million residential properties in Iskandar Malaysia by 2025 is based on its estimated population of 3 million. At the end of 2019, the low take-up rate of the 700,000 completed residential units has left a huge property stock overhang and the sub-sale pricing trend has been on a downward trend.

In addition to the mismatch in the sectoral development within the region, the frequent flip-flop changes to government policies between 2018 and 2020, both in Malaysia and overseas, had been a great dampener for the regional projects to confidently move forward in accordance to the original master plan. The renegotiation of the High-Speed Rail and the RTS to smoothen the connection between Malaysia and Singapore, the unclear foreign residential property investment policy and also ever-changing global trade issues were some of the stumbling blocks in moving the Iskandar Malaysia development plan forward as planned in 2006.

Going forward, for investors and homebuyers who missed the good investment opportunity of Medini City back in the early 2010s, may relook for good bargains in the area. In the sub-sale market, 1Medini Residences with the lowest launch price would be considered a good value purchase in comparison to later launches which were sold at higher psf prices.

Today’s Medini City can be considered more mature after the first two growth phases and now moving into the third development phase with the expansion of connectivity infrastructure and also growth in the other promoted industries which will be the main drivers of demand in the area.

The revival of the RTS project which will greatly enhance the connectivity between Malaysia and Singapore has definitely put back a spark in generating interest in Medini City. To successfully seal the deal with potential foreign buyers, there must be definite and clear government policies on property ownership and long-term residency in Malaysia for foreigners.

Properties in Medini City are for medium and longer-term investments. As most of the building work of the residential and commercial properties only started in 2012 to 2013, and up until now, the area is still busy with construction works. Considering that the entire area is built from scratch, Medini City is still a relatively young township which is slowly taking shape. 13 years can be considered a long waiting time, but for such an ambitious project as Iskandar Malaysia, 13 years may be too short to turn a vast region into a global metropolis. Rome was not built in a day.