Iskandar under flipper attack
When talking about the economic region in the southern state of Johor, Iskandar Malaysia, Mr Shanker says that Iskandar is a case of a great development project that is overbuilt in one sector, namely housing. 'Everything else is still blue chip.'
He says Iskandar has everything working for it: a state government that is committed towards supporting this region by building good infrastructure; supporting industries and incentives for businesses to start and develop; supported by world-class health and education sectors. It is all that Singapore would need to accommodate its growth.
'But the idea got hijacked. Flippers rushed in and one sector is grossly overbuilt. We should give Iskandar a chance to grow,' he adds.
Elsewhere, property flipping is losing its appeal
Property flipping is fast becoming a thing of the past in the West. 'China, Singapore, Malaysia, Hong Kong are now where the West have been and gone through,' Vijay Manavalan, a property negotiator in Malaysia involved in promoting properties in UK for investment.
'To get value out of property investment, it is best to get slow income, and not flip. There will not be many more markets around the world to flip. Investors need to look at the rental income that can be generated,' he tells The Establishment Post.
He says that many Malaysians and Singaporeans are starting to see the wisdom in this and are buying properties in the provinces in the United Kingdom. Generally, in places where they had done their tertiary education like Birmingham and Brighton.
'A property in London is like a trophy asset, not purely investment but trophy-led. Yields from rental are not as high as the yields in provinces outside London,' he says. 'London experienced the flipping from 2001-2014. Cooling measures have been put in place last year. We're not predicting too much growth in London.'
With a combination of government measures and diminishing opportunities, Malaysia property flipping may just be a thing of the past and Malaysian property market can be allowed to grow naturally and at a steady pace.