Danga Bay investor sees long-term potential

Mr Kelvin Fong
Mr Kelvin Fong

Yes, there may be oversupply concerns and uncertainty about cross-border government policies. But property in Iskandar can work as a long- term investment, says Mr Kelvin Fong, who has invested in a Danga Bay project.

Mr Fong is with a property agency here but does not market Iskandar projects. He bought as investment a one-bedroom and a two-bedroom apartment in Medini Signature in early 2013, at about RM500 (S$169) per sq ft (psf). The project is scheduled for completion later this year.

Prior to taking the plunge, he said he "stress-tested" himself - calculating, for example, whether he would be able to sustain the investment even if a unit fetches below-market rents.

"I'm comfortable at the price point I went in. In the worst-case scenario (if they can't be rented out), I'm prepared to hold it."

"I felt there was potential in future development there and I didn't want to lose out."

Land prices have also gone up since, and new-launch prices in his area have gone up to as high as RM1,300 psf.

"I always feel that real estate will go up - because of inflation, cost of materials. I'm prepared that my properties may not appreciate in value now. But at the end of the day, when the market turns, I don't want to rue that I had a chance to buy."

Rennie Whang

A version of this article appeared in the print edition of The Straits Times on February 10, 2016, with the headline 'Danga Bay investor sees long-term potential'. Print Edition | Subscribe