Koh believes the magnitude and scale of such launches could lead to a property bubble if foreign developers are given a free hand in their development projects.
Rehda is hoping for the state government to possibly impose regulations that limit the number of units built within a year to match the market’s demands, says Koh.
Hwang-DBS Vickers Research says Country Garden’s 9,000 units launch at-one-go in Danga Bay alone could cause a glut, although delivery could be challenging given tight building material and labour supply over the next three to four years.
Analysts are concerned that these developers would replicate the ghost towns in China and if overbuilding does occur in Iskandar, that can be detrimental to the overall physical market in the mid-term.
However, some property experts say the extra supply would not pose an issue if foreign developers were attracting foreign buyers, rather than targeting only domestic buyers.
Country Garden, which has impressively sold about 70% of its Danga Bay maiden project in Malaysia, launched in August, told StarBizWeek in an email reply that some 3,000 units were snapped up by Malaysians.
Meanwhile, about 50% of its foreign buyers are Singaporean and 45% are Chinese.
Most of its units were snapped up within a month.
